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Netherlands: Government report on concerns relating to new framework for determining characterization for tax purposes of foreign legal forms

Focused on definition of mutual fund

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June 16, 2025

The Deputy Minister of Finance on June 12, 2025, delivered to the House of Representatives the results of an investigation into various concerns related to the new framework for determining characterization for tax purposes of foreign legal forms that became effective on January 1, 2025 (read TaxNewsFlash), in particular regarding the definition of mutual fund (fonds voor gemene rekening (FGR).

Solutions for the concerns identified may lead to legislative changes, potentially effective by January 1, 2027.

Read a June 2025 report prepared by the KPMG member firm in the Netherlands

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