Netherlands’ Upper House of Parliament has passed 11 tax bills on 17 December 2024, which include the entirety of the 2025 Tax Plan package and amendments to 2the 025 Tax Plan, 2025 Tax Plan BES Islands, and Minimum Taxation Act (Amendment) Act 2024.
This follows after the Netherlands’ Lower House of Parliament approved the 2025 Tax Plan with some amendments on 14 November 2024. The key amendments include changes to the EBITDA interest deduction limitation, adjustments to the anti-fragmentation rule for real estate, reduced exemptions for green investments, and the cancellation of a proposed VAT rate increase.
Earlier, the Netherlands State Secretary for Finance stated that the global minimum tax would have limited effects on current tax incentives but highlighted the challenges that will arise from new tax credits under Pillar Two. The State Secretary highlighted that the minimum tax could impact incentives like the innovation box, tonnage regime, and loss rules, which can reduce a company’s tax rate from 25.8% to under 15%, which could lead to additional tax charges under the Pillar Two rules.
