Dutch Tax Plan 2019

By Sigrid Hemels

18 Sept 2018 1 minute read

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Content Type eAlert

Language English

Subjects Corporate governance, Corporate & M&A, General corporate updates, Shareholders rights, Tax

Overview

On 18 September 2018 (Prinsjesdag), the Dutch government presented its Tax Plan (Belastingplan) 2019. The Tax Plan includes many measures with an impact on businesses and financial institutions, such as a reduction in the corporate income tax rates, the abolition of dividend withholding tax, a new interest deduction limitation and new CFC rules. Furthermore, the ruling practice might change.

We have created an alert in which we discuss the most relevant proposals. The alert covers the proposals on:

Withholding taxes (incl. the abolishment of dividend withholding taxes)
Corporate income tax, incl:
1. Tax rates
2. Limitation of Interest Deduction
3. Introduction of CFC rules
4. Limitation of loss carry-forward
5. Depreciation of real estate
6. Additional deduction for energy friendly investments reduced
7. Effects of abolition of dividend withholding tax on fiscal investment institutions
8. Deductibility of tier-1 capital coupons abolished
9. Per element approach introduced in fiscal unity regime
10. Change in Decree on fiscal unity: time frame between signing and closing
11. Possible changes in the ruling practice: internet consultation
Wage tax: reduction of benefits for incoming expatriates
Personal income tax
Value added tax: increase in reduced rate
Parliament can make changes to the Tax Plan