2018’s Fiscal Resolutions by the Dutch Government

 

changes tax 2018

The new year usually comes with new resolutions and plans. This isn’t any less true for the Dutch government. It plans on several law adjustments that will be in effect starting January 1, 2018. Among these adjustments are tax changes.

The resolution behind these changes is the aim to improve the Netherlands’ fiscal climate. In order to achieve this ambitious plan, the government will adapt corporate income tax, dividend tax and VAT. Furthermore, there are several other rearrangements concerning multinationals.
The most relevant of tax changes are discussed below.

Corporate Tax

First of all, the government hopes to attract foreign entrepreneurs by lowering the corporate tax rates. Starting January 2019, the rates will decrease with 1.5%-points. By 2021, this should result in 16% of taxable profit up to EUR 200 000 and 21% of the taxable profits exceeding this limit. In addition, the government will raise the corporate tax rate of the innovation box from 5% to 7%.

VAT

VAT rates will increase as well. In 2018 tax authorities will demand 9% instead of 6% VAT.

Dividend tax

Dividend tax, on the other hand, will be abolished altogether by January 2018. To prevent tax abuse, however, companies will still be subjected to withholding tax on outgoing interest and royalty flows to low tax jurisdictions.

Other resolutions

Finally, the Dutch government officially pronounced to reduce the 30% ruling term to five years. This decree will be in effect starting January 1, 2018. It is one of the measures to restrict expats’ tax benefits.
If you have more questions regarding these and other fiscal adjustments, please feel free to contact us. We are happy to assist you.