Netherlands: Upper House passes 2021 “tax plan” and other tax measures

Netherlands: Upper House passes 2021 “tax plan”

The Upper House of Parliament on 15 December 2020 passed the 2021 “tax plan” package.


The 2021 tax plan package is comprised of a number of bills including legislative proposals concerning a CO2 tax on industrial emissions, a real estate transfer tax measure, changes to “Box 3,” a rent reduction for low income tenants, and surcharge rates for sustainable energy.

The Lower House of Parliament had already adopted these bills in November 2020. Read TaxNewsFlash

With regard to the “tightening” of the loss set-off rules for corporate income tax purposes as of 2022 and the job-related investment allowance (Baangerelateerde Investeringskorting—BIK), two separate “memoranda of amendment” to the 2021 tax plan were presented to the Lower House of Parliament in October 2020.

  • Limitation of loss set-off: The tightening of the loss set-off rules for corporate income tax purposes would take effect on a date still to be decided by Royal Decree. The government anticipates an effective date of 1 January 2022.
  • Job-related investment allowance (BIK): One element of the job-related investment allowance would also take effect by Royal Decree. The option for a fiscal unity for corporate income tax purposes to use the BIK could possibly be effective at a later date because the BIK scheme has been reported to the European Commission to avoid prohibited state aid issues.

Adopted motions

The following motions were also passed in the vote on 15 December 2020:

  • The government will in the future include a “feasibility assessment” (doenvermogentoets) with all tax measures presented to Parliament.
  • The government will investigate a more “neutral treatment” of businesses that are subject to tax as individual (personal) income taxpayers or as corporate income taxpayers, and to share the outcomes of this review with the Lower House no later than the first half of 2021.

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

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