Share with your friends

Netherlands: Proposals to improve, simplify tax system

Netherlands: Proposals to improve, simplify tax system

A package of tax proposals—referred to as the “Building Blocks for a Better Tax System” (Bouwstenen voor een beter belastingstelsel)—was published on 18 May 2020.


Related content

This package of reports is the result of an initiative for specific building blocks and proposals for improvements and simplifications to the tax system, as originally put forward in September 2018 by the previous Deputy Minister of Finance. 

The reports (that contain more than 1,000 pages of text) have resulted in 169 detailed policy options concerning a large number of taxes—options that in certain instances would be diametrically opposed. The reports reflect policy options proposed by officials at the Ministry of Finance, and that can be used by a new government given that the recommendations will not be enacted into law this year.

The detailed policy options would become part of the various election manifestos and will play a significant role in the formation of a new government after the national election in 2021.

While this relates to future actions, it may nevertheless be worthwhile to examine the proposed policy options. Based on this, taxpayers may be able to take certain steps and anticipate any future changes—in particular, regarding proposals for tightening or even repealing current tax concessions.

There are 169 measures presented by the Ministry of Finance, including measures to address problems with the current “box system” in the individual (personal) income tax regime, the tax on the transfer of assets (gifts and inheritance), the taxation of corporate profits, and the role of tax in health and climate matters. With regard to the taxation of corporate profits, the policy options would adopt measures appearing in the report by the Ter Haar Committee (April 2020).

Read a May 2020 report prepared by the KPMG member firm in the Netherlands

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal