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Netherlands: Consultation on changes to corporate income tax group rule

Netherlands: Consultation on changes, corporate income

The Deputy Minister of Finance this week launched an internet consultation on an options document that essentially contains four possible solutions for a new corporate income tax group rule. Interest groups, businesses, advisors, academics and other stakeholders are invited to submit a response. The consultation includes nine explicit questions that are linked to the possible solutions. The consultation procedure will end on 29 July 2019.


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The Deputy Minister already indicated in October 2017 that the current fiscal unity regime needed to be succeeded by a new, future-proof group rule. The desire to create a future-proof group regime has its origins in the EU-law vulnerability of the current fiscal unity regime, as evidenced by a February 2018 judgment of the Court of Justice of the European Union and the final judgment of the Dutch Supreme Court in October 2018 concerning the per-element approach.

The Dutch law has been amended in respect of a number of elements—refer to the Fiscal Unity Emergency Repair Act (Wet spoedreparatie fiscale eenheid), adopted by the Upper House in April 2019.

However, with regard to other elements, the risks under European law have not (or may not have) entirely addressed. The aim therefore is to draft a new group rule. The options document was drawn up as a result of a kick-off meeting organized by the Ministry of Finance in February 2019, at which time representatives of the business sector, interest groups and the academic community presented their views on a new group regime.

Read a June 2019 report prepared by the KPMG member firm in the Netherlands

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