Netherlands: Status of tax legislative measures in 2022 Tax Plan

Elements of the 2022 Tax Plan package were adopted by the Upper House of Parliament

Elements of the 2022 Tax Plan package were adopted by the Upper House of Parliament

The Upper House of Parliament on 21 December 2021, adopted elements of the 2022 Tax Plan package and passed a bill to address mismatches in the application of the arm’s length principle. The Lower House of Parliament adopted the same bills on 11 November 2021.

With the 21 December action, the Upper House approved the following bills from the 2022 Tax Plan:

  • 2022 Tax Plan
  • 2022 other tax measures
  • Tax status measure from second EU ATAD Directive (Implementation) Act (tax status measure regarding reverse-hybrid entities)
  • Reduction of landlord levy rate and monthly changes to tax reduction amounts

A few of the measures adopted by means of separate memoranda of amendment include:

  • Limiting the possibilities for setting off holding company losses
  • Expanding the permanent establishment concept for the purposes of the withholding tax on interest and royalties
  • Increasing the top corporate income tax rate to 25.8%
  • Tightening of the generic interest deduction limitation (earnings stripping measure) by lowering the deduction percentage from 30% to 20% of the EBITDA for tax purposes

Read a December 2021 report prepared by the KPMG member firm in the Netherlands


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