Netherlands: 2024 Tax Plan package and law implementing Pillar Two global minimum tax enacted

The Upper House of Parliament adopted virtually the entire “2024 Tax Plan package”

The Upper House of Parliament adopted virtually the entire “2024 Tax Plan package”

The Upper House of Parliament yesterday adopted virtually the entire “2024 Tax Plan package,” as well as the Minimum Tax Act 2024 and the Tax Miscellaneous Provisions Act 2024, which were passed by the Lower House of Parliament on 27 October 2023. Read TaxNewsFlash

The Upper House voted on a total of 17 tax bills, of which it adopted the following 16:

2024 Tax Plan package

  • 2024 Tax Plan
  • 2024 Tax Plan BES Islands
  • Mutual Fund and Exempt Investment Institutions (Amendment) Act
  • Fiscal Investment Institution (Amendment) Act
  • Legal Forms Tax Qualification Policy Act
  • Selective Intake Compensation Act
  • Reassessment Legal Costs WOZ and BPM Act
  • Business Succession Tax Relief (Amendment) Act 2024
  • Temporary Scheme Revision of Personal Income Tax Return Act
  • Other Tax Measures 2024
  • Climate Tax Measures for Glasshouse Horticulture
  • Personal Rent Allowance Contribution (Reduction) Act
  • Amendment of the Surviving Dependents Act and the Participation Act in connection with the double general tax credit in the reference minimum wage not being phased out in 2024
  • Amendment of the Child-related Budget Act to increase the child-related budget as a means of improving consumer purchasing power

The bill on the Climate Tax Measures Electricity and Industry Act, which included a proposal to end the exemptions for metallurgical and mineralogical processes contained in the energy tax, was rejected.

Other bills

  • Minimum Tax Act 2024
  • Tax Miscellaneous Provisions Act 2024

Adopted motions

The Upper House also adopted a total of 15 motions regarding these measures.

Unlike the Lower House, the Upper House cannot make changes to the bills, because it does not have a right of amendment. However, the Upper House can adopt motions by majority vote. By adopting a motion the Upper House gives its opinion of the policy pursued, calls on the government to do something or not do something or makes general comments on certain matters or current developments. Although an adopted motion has political significance, ministers are not obliged to implement it. 

KPMG observation

Several of the adopted motions calls on the government to reverse some of the tax measures the Upper House adopted and to replace them with other measures (e.g., the further scaling back of the 30% ruling and the discontinuation of tax relief for the redemption of shares for listed companies for dividend tax purposes).

Read a December 2023 report prepared by the KPMG member firm in the Netherlands


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