The Netherlands government has presented the third amending bill to the Tax Plan 2025 to the lower house of parliament on 6 November 2024.
This bill aims to eliminate an unintended, temporary tax liability for funds held in joint accounts (FGR).
Starting 1 January 2025, the definition of FGR will change, aligning its tax liability with its original purpose of joint investments. The FGRs will also be subject to corporate income tax.
Under current legislation, certain funds that intend to remain or become transparent by 2025 but fail to meet the requirements by 31 December 2024 will be subject to corporate income tax until they achieve transparency later that year.
To prevent this, the amending bill states that FGRs wishing to be transparent before 1 January 2025 will be recognised as such if they complete the necessary restructuring to meet transparency requirements by the end of 2025.
