15/April/2020
Report on taxation of multinationals
A report was published on the taxation of multinational companies with suggestions for specific tax measures. The report was drafted by an Committee advising the Dutch government.
From a policy perspective, the Committee advises to aim for 1) a minimum level of taxation and 2) a reduction of mismatches.
In this context, the Committee advises the Dutch government to constructively work on international and EU tax developments (BEPS 2). Further, many ideas for unilateral tax measures are presented, including deduction limitations for interest, royalties and shareholder costs and a depreciation limitation for assets acquired from low taxed group entities. At the same time, the report acknowledges the importance of the Dutch investment climate: the Committee advises to reduce the CIT rate and innovation box rate.
The report is an advice to the Dutch government and is not binding. Not all measures are backed by consensus within the Committee (such as DST). Nonetheless, political parties are expected to use elements in the report towards the elections in 2021.
