Netherlands: Updated guidance on ATAD interest-deduction limitation rules
The new decree applies from July 30, 2025.
The Dutch State Secretary for Finance on July 29, 2025, published a new decree (Dutch) providing guidance on the operation of the interest-deduction rules that were implemented as part of the transposition of the Anti-Tax Avoidance Directive (ATAD).
Under those rules, the net borrowing costs (i.e., interest expenses less interest income) are generally limited to the higher of (1) 24.5% of tax-earnings before interest, taxes, depreciation, and amortization (EBITDA), or (2) €1 million. The 24.5% rate applies to fiscal years beginning on or after January 1, 2025. Previously, the EBITDA-threshold was set at 20%.
Key takeaways from the updated guidance include:
- Clarifications regarding the term “interest”
- Interaction with other interest deduction limitation rules
- Liquidation losses
- Tonnage tax regime
The new decree applies from July 30, 2025, and replaces decree No. 2023-22492 of November 24, 2023.
Read an August 2025 report prepared by KPMG’s EU Tax Centre