Netherlands: Fiscal unity rules, corporate income tax | KPMG | GLOBAL
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Netherlands: Changes to fiscal unity rules for corporate income tax

Netherlands: Fiscal unity rules, corporate income tax

The Upper House on 29 November 2016 passed a bill that amends the Dutch corporate income tax fiscal unity rules. The bill will be enacted on publication.


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This parliamentary action comes almost two years after the Amsterdam Court of Appeals held, on the basis of three preliminary rulings rendered by the Court of Justice of the European Union that certain aspects of the Dutch corporate income tax fiscal unity regime were not in line with EU law.

The legislative provisions in the bill apply in two basic situations:

  • When a parent company established in the Netherlands holds the shares in a sub-subsidiary established in the Netherlands via an intermediate holding company that is established in another EU/EEA Member State (a so-called “Papillon” fiscal unity)
  • When the shares in two or more sister companies established in the Netherlands are held by a joint parent company established in the EU/EEA (a so-called “sister” fiscal unity)

There are variations on these two situations when, under certain conditions, companies can be included in the fiscal unity. This bill also repairs the various opportunities for double loss set-off that could arise as a result of extending the possibility to form a fiscal unity.

KPMG observation

At present, there are proceedings are currently pending before the Dutch Supreme Court concerning a request for a fiscal unity that was filed for numerous sister companies established in the Netherlands with a joint parent company established outside the European Union. 


Read a December 2016 report prepared by the KPMG member firm in the Netherlands: Parliament approves Bill on the Fiscal Unity Amendment Act

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