The Dutch Tax Authority has issued new guidance clarifying when entities qualify as joint ventures under the Minimum Tax Act 2024, including surprising rules on 100% ownership and fair value accounting exclusions.
The Dutch Tax Authority’s knowledge group issued guidance on 9 April 2026, interpreting the joint venture (JV) definition in Article 1.2 of the Minimum Tax Act 2024, addressing three key questions about entity qualification.
Net asset value method required
Entities can only qualify as joint ventures if their financial results are recognised using the net asset value method in the ultimate parent entity’s consolidated financial statements. Fair value accounting does not meet this requirement, regardless of whether certain financial reporting standards permit it for JVs under specific circumstances.
100% ownership can qualify
Contrary to traditional partnership concepts, an entity wholly owned by its ultimate parent can qualify as a joint venture. The critical factor is meeting the 50% ownership threshold and using net asset value accounting, not the absence of other partners. This interpretation aligns with the Act’s purpose of preventing entities from falling outside its scope when consolidation doesn’t occur. Under the legislation, “interest” means any equity stake entitling the holder to profits, capital, or reserves; control rights are irrelevant to this definition.
Continuous assessment applies
The 50% ownership threshold must be evaluated on an ongoing basis. An entity becomes a joint venture the moment an ultimate parent acquires at least 50% interest (direct or indirect), and all other conditions are satisfied. The definition contains no specific measurement date, requiring continuous monitoring.
The guidance ensures consistent application of special JV provisions designed to bring these entities within the Minimum Tax Act’s scope, preventing avoidance through alternative accounting treatments.
The guidance ensures consistent application of special JV provisions designed to bring these entities within the Minimum Tax Act’s scope, preventing avoidance through alternative accounting treatments. The guidance notes that the JV definition aligns with Article 10.1.1 of the OECD Model Rules and Article 36 of the Minimum Taxation Directive (2022/2523), with these international provisions being substantively identical to the Dutch legislation and its accompanying parliamentary history.
