Netherlands Budget Day 2021 and other tax developments
INSIGHT ARTICLE |
Following the Dutch government’s release of their budget proposals for fiscal year 2021, RSM Netherlands provides an overview of the important corporate and international tax developments to be aware of in the Netherlands. The 2021 Budget will cover a wide variety of topics of interest to companies doing business in the Netherlands including reductions in the corporate tax rate, anti-abuse rules for hybrid transactions, more significant substance requirements, increased information reporting, new withholding taxes on interest and royalty payments to low tax countries, postponement of DAC 6 reporting, extension of rules under the multilateral instrument to prevent treaty shopping abuses, limits on loss carryforwards and restrictions on the use of transfer pricing to push income to low tax jurisdictions, among other important items. Globally active companies who are considering or are currently doing business in or through the Netherlands should keep an eye on these upcoming developments within the Dutch tax landscape and should consider their response carefully.