The Dutch Ministry of Finance has announced that the Senate (upper house of parliament) approved the 2020 Tax Plan on 17 December 2019. As provided in an overview of the Major Tax Changes in 2020, some of the key changes from 1 January 2020 include:
Further to the above, the overview also includes that with effect from 1 January 2021, conditional withholding tax will be applied on interest and royalty payments to low-tax jurisdictions and in abusive situations, but only applies for payments in a group context. The withholding rate will be the general corporate rate. Although not mentioned in the overview, the rate is to be reduced to 21.7% in 2021 (lower rate reduced to 15.0%).
Lastly, the Senate has also reportedly approved the legislation for the implementation of Council Directive (EU) 2018/822 of 25 May 2018 (DAC6) on reportable cross-border tax planning arrangements. This includes that from 1 July 2020, intermediaries such as tax advisers, accountants, and financial institutions will be obliged to report cross-border arrangements that can be used to avoid tax. Taxpayers may also need to report in cases where there is no intermediary, or an intermediary is unable to report. An initial disclosure is also required by 31 August 2020 in respect of reportable arrangements during the period 25 June 2018 to 30 June 2020.
Additional details of the approved measures will be published once available.