First Look: Dutch Tax Plan 2021 released

By Jian-Cheng Ku, Tim Mulder & Xander Stubenrouch, DLA Piper Nederland N.V.,  Amsterdam

Today, on budget day in the Netherlands, the Minister of Finance presented Dutch Tax Plan 2021. Dutch Tax Plan 2021 contains the tax legislative proposals for 2021

Measures proposed include a conditional withholding tax on interest and royalty payments to low tax jurisdictions, a tightening of the liquidation loss regime, an increase of the effective tax rate for the innovation box (7% to 9%), and amendments of the corporate income tax rate.

The modified corporate income tax rate entails an extended lower bracket of EUR 245,000 (EUR 200,000 In 2020) at a reduced rate of 15% (16.7% in 2020).

The lower bracket will be further extended to EUR 395.000 in 2022. The higher corporate income tax rate remains 25% in 2021.

In addition, Dutch Tax Plan 2021 offers proposed measures in the areas of real estate transfer tax, environmental tax, wage tax, and income tax.

 Finally, Dutch Tax Plan 2021 introduces specific provisions to mitigate the negative impact of Covid-19 on businesses.

DLA Piper expects to publish a detailed article on the implications of Dutch Tax Plan 2021 shortly.

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Jian-Cheng Ku

Partner at DLA Piper Nederland N.V.

Jian-Cheng Ku advises on international tax law and transfer pricing with a particular focus on international tax planning, M&A and private equity transactions, corporate reorganisations, and planning and design of transfer pricing policies.

Latest posts by Jian-Cheng Ku (see all)

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• Dutch 2022 budget plan includes tax proposals on transfer pricing, hybrids - September 27, 2021
• Netherlands legislative proposal tackles transfer pricing mismatches - March 24, 2021

Jian-Cheng Ku
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Tim Mulder

Associate Tax Adviser at DLA Piper Nederland N.V.

Tim Mulder advises on Dutch and international tax aspects relating to international tax planning, M&A transactions, corporate restructurings, private equity and investment fund transactions.

Latest posts by Tim Mulder (see all)

• Netherlands legislative proposal tackles transfer pricing mismatches - March 24, 2021
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• First Look: Dutch Tax Plan 2021 released - September 15, 2020
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• EU court assesses legality of Netherlands’ denial of German UCITS’s dividend withholding tax refund - February 11, 2020

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Xander Stubenrouch

Tax Advisor | Junior Associate at DLA Piper Nederland N.V.

Xander Stubenrouch advises on international and Dutch tax law, with a particular focus on M&A and private equity transactions and international tax structuring.

Latest posts by Xander Stubenrouch (see all)

• UN tax committee to consider adding new automated digital services article to model convention - October 20, 2020
• The 2021 Dutch tax plan: key takeaways for multinational enterprises - September 28, 2020
• First Look: Dutch Tax Plan 2021 released - September 15, 2020
• UN model treaty proposal would impose withholding tax on software payments - September 9, 2020