Netherlands: Memorandum to parliament in response to report regarding bill implementing Pillar Two
Deputy Minister of Finance answered questions posed by Lower House of Parliament
Deputy Minister of Finance answered questions posed by Lower House of Parliament
The Deputy Minister of Finance on 11 September 2023 sent a memorandum in response to the report regarding the bill on the Minimum Profit Tax Act 2024 to the Lower House of Parliament.
The bill on the Minimum Profit Tax Act 2024 was presented to the Lower House of Parliament on 31 May 2023. The purpose of the bill is to transpose EU Directive 2022/253 of 14 December 2022 into national legislation. The directive is based on the OECD’s Pillar Two GloBE Model Rules published at the end of 2021.
The bill has not been deemed controversial and will remain on the agenda for further consideration by the Lower House of Parliament.
In its memorandum, the Deputy Minister of Finance answered questions posed by the members of the different factions in the Lower House of Parliament relating to:
- Examples of the effect of corporate income tax measures on the effective rate
- Liquidation losses
- Transfer pricing differences
- More detailed explanation of de minimis exception
- Transitional country-by-country (CbC) reporting safe harbor
- Excluded entities
- Post-filing adjustments
- GloBE information return
- Liability for top-up tax
- Dispute resolution
- Effect of OECD clarifications
- Tax revenue
KPMG observation
The memorandum provides answers to many questions, but there are still many points that need further elaboration, especially at the OECD level (e.g., the dispute resolution mechanism and the details of the simplified calculations as part of the permanent safe harbor rule).
Read a September 2023 report prepared by the KPMG member firm in the Netherlands
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