On May 31, 2023 the Dutch Government sent a draft bill to implement a 15% minimum taxation for large multinational groups and large domestic enterprises to the Dutch parliament. In this article we will mention a few of our initial remarks.
As could be expected the legislation will apply to multinational groups and domestic enterprises with a total consolidated annual revenue that equals or exceeds 750 million Euro.
The new legislation will not be implemented in the Dutch corporate income tax Act, but it will remain in a separate law. The Dutch Government notes that this is done since the Dutch corporate income tax Act is already very complicated and inserting the new regulations in the Dutch corporate income tax Act will put too much of a burden on the Dutch tax authorities.
The Dutch Government intends to introduce the Income Inclusion Rule (IIR), the Undertaxed Payments Rule (UTPR) and a Qualified Domestic Top-up Tax (QDTT).
The taxpayer will have to file a separate/additional return for these additional taxes. For the first financial year for which an additional tax return has to be filed, this additional return will have to be filed within 18 months after the end of the financial year for which the additional return is being filed. For later financial years this period is shortened to 15 months.
The additional tax will be due on return. This means that the taxpayer will have to pay the tax that is due without the tax inspector issues a tax assessment. The tax due will have to be paid within 2 months after the additional tax return was filed.
The Dutch Government intends that the law will enter into force as per December 31, 2023 as a result of which it will be applicable to financial years starting on or after December 31, 2023.
The Dutch Government intends that the law will also apply in the so-called BES Islands (Bonaire, Sint Eustatius and Saba).
The draft Bill to implement a 15% minimum taxation for large groups in The Netherlands as introduced into the Dutch Parliament on May 31, 2023 can be downloaded here. (Available in the Dutch language only)
The Commentary to the draft Bill to implement a 15% minimum taxation for large groups in The Netherlands as sent to the Dutch Parliament on May 31, 2023 can be downloaded here. (Available in the Dutch language only)
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