Some relevant proposals expected in the Tax Plans 2025 relate to the deductibility of interest payments, the introduction of a new group definition in the Withholding Tax Act 2021, the incorporation of the latest OECD Pillar Two Guidance in the Minimum Tax Act 2024 (MTA 2024) and the interaction of the MTA 2024 with clauses embodied in the Corporate Income Tax Act (CITA).  

As far as the deducibility of interest is concerned, it is expected the EBITDA cap will be increased from 20% to 25% to bring the Dutch implementation of the earnings stripping measure as embodied in the Anti-Tax Avoidance Directive more in line with the implementation in other EU Member States. On the other hand it is still expected that the earnings stripping measure will be tightened for real estate companies with leased real estate by not allowing such companies to make use of the EUR 1,000,000 threshold.

Another important change concerns the addressing of the undesired outcome for taxpayers of the concurrence of the current tax loss settlement rules and the debt relief exemption. The wording of the CITA will be amended in order to prevent such undesired outcomes that currently make it more difficult for taxpayers to restructure.

In addition, some previously adopted changes might be reversed or relieved, such as the tax-free repurchase facility for listed entities, the personal income tax rates and the expatriate regime. See our previous news article for background information.

The proposed measures will, if adopted, enter into force per 1 January 2025, together with measures that were adopted on Budget Day 2023, such as the changes in the classification rules for Dutch limited partnerships, comparable foreign entities and Dutch funds of joint account. For more information we refer to this publication.

Once the tax plans are eventually published on Budget Day, we will analyse the proposals in more detail and summarise the proposed measures and more specifically their potential impact for funds, (international) corporates and high-net worth individuals. All updates will be accessible through our dedicated webpage.