On 4 June 2021, the Netherlands published the Decree of 21 May 2021 in the Official Gazette, which provides for the implementation of the loss carryforward changes that were proposed as part of the 2021 Tax Plan. This includes the introduction of a new loss offset restriction providing that the offset of carried forward losses is limited to 50% of profits exceeding EUR 1 million, with the current 6-year carry forward limit removed. In other words, losses may be carried forward indefinitely, subject to the 50% offset limit per year.

The new rules are effective for financial years beginning on or after 1 January 2022, including losses arising in financial years beginning on or after 1 January 2013 for offset against taxable profits derived in financial years beginning on or after 1 January 2022. It is also noted that losses from financial years that began before 1 January 2013 may be carried forward for offset up to 9 years (prior limit) after the close of the financial year, i.e., by 31 December 2021 at the latest. After that, such losses can no longer be settled.