The Dutch Ministry of Finance has announced that the Senate has approved the 2020 Tax Plan on 17 December 2019; however the Dutch Government published the 2020 budget proposals on 17 September 2019. Some of the key changes from 1 January 2020 include:
Under the plan, the corporate income tax rate on income up to EUR200,000 will reduce from 19% to 16.5% in 2020, followed by a further reduction to 15% in 2021, the tax rate on income in excess of EUR200,000 remain at 25%, but this will be reduced to 21.7% in 2021.
The tax plan also implements the second European Union Anti-Tax Avoidance Directive (ATAD 2) regarding hybrid mismatches effective from January 1, 2020. This law addresses hybrid mismatches with regard to non-EU countries, given that intra-EU disparities are already covered by the first anti-tax-avoidance directive adopted in July 2016.
