The End-of-Year Decree 2025 updates several tax implementation decrees to align with the 2026 Tax Plan. Key changes include: aligning the Pillar 2 Minimum Tax with OECD guidance, aggregating deferred tax, cross-crediting formulas, and refining the QDMTT safe harbour rules.
The Netherlands has gazetted the End-of-year Decree 2025 on 23 December 2025, introducing a series of primarily technical amendments to several tax implementation decrees, mainly stemming from the 2026 Tax Plan and the 2026 Tax Collection Act.
The Decree contains key amendments, including updates to the implementing decree for the Minimum Tax Act 2024 (Pillar 2 Global Minimum Tax) and the integration of the latest OECD administrative guidance.
Minimum tax 2024 (pillar two) alignment
To ensure the Dutch Minimum Tax 2024 remains consistent with international standards, the decree incorporates various OECD administrative guidelines.
Aggregation of deferred taxes
Companies may collectively assess passive tax liabilities (deferred taxes) aggregated for financial reporting, rather than tracking each liability individually. This includes applying FIFO (First-In-First-Out) or LIFO (Last-In-First-Out) to determine whether a liability has been settled within the required five-year window.
Cross-crediting formulas
The decree provides complex formulas for the allocation of “covered taxes” when a parent entity’s tax system allows for the blending of income from different foreign sources (cross-crediting)
Safe harbours and “switch-off rule”
It refines the “Qualifying Domestic Minimum Top-up Tax” (QDMTT) safe harbour rules. It introduces a “Switch-off Rule” for entities with certain active tax liabilities to prevent undesirable increases in covered taxes.
Codification of the vacancy value ratio (Leegwaarderatio)
The decree codifies specific Supreme Court rulings from 2015 and 2016 regarding the valuation of rented properties for Income Tax (Box 3) and Inheritance Tax.
- Market value override: If the value calculated using the standard vacancy value ratio table is 10% or more higher than the property’s actual market value in its rented state, the actual market value must be used instead.
- Related parties: Starting 1 January 2026, the vacancy value ratio will no longer apply to properties rented to related parties if the rent is not at a market-conforming rate.
The amendments will go into effect retroactively from 31 December 2023 (1 January 2024).
