Last Thursday, 15 November 2018, the House of Representatives of the Dutch Parliament (Tweede Kamer) adopted legislative proposals that incorporate the tax measures of the 2019 Tax Plan and the EU Anti-Tax Avoidance Directive (ATAD 1). The legislative proposals were initially made by the Dutch Government on 18 September 2018 (see Client Alert of 19 September 2018) and were later amended following political debate (see Client Alert of 16 October 2018).
The House of Representatives adopted the planned legislative proposals with only a few modifications. Most importantly, for the purposes of the Controlled Foreign Company rules implementing ATAD 1, the qualifying corporate income tax rate for a low-tax jurisdiction has increased from the initially proposed 7% to 9%.
The legislative proposals will, however, only enter into force if also adopted by the Senate of the Dutch Parliament (Eerste Kamer). The Senate debate is scheduled for 10 and 11 December 2018 and the vote will take place on 18 December 2018.
We will continue to inform you of any relevant progress. If you have any questions on the latest developments, please do not hesitate to reach out to your contact at Baker McKenzie Amsterdam.