The measures include: For additional information with respect to this Alert, please contact the following: EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. © 2020 EYGM Limited. Under the liquidation loss rules, a Dutch taxpayer can – under certain conditions – deduct losses resulting from ceasing foreign businesses or liquidating subsidiaries. Amendment of the credit for certain withholding taxes against Dutch CIT for certain investors. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. “In the labour market, where there is a big difference between people on permanent contracts and people on flexible contracts, the self-employed person’s tax allowance will be further reduced. Additionally, the Dutch Government continues to combat perceived abusive tax structures in line with international tax proposals and has introduced further measures to support economic recovery from the COVID-19 crisis. For more information about our organization, please visit ey.com. On 15 September 2020, the Dutch Government published the Dutch budget proposals (the Proposals) for fiscal year 2021. Legal  |  On 15 September 2020, the Dutch government published the Dutch budget proposals (the proposals) for fiscal year 2021. The Netherlands must be ready for serious economic setbacks, says king The Netherlands must ready itself for serious economic setbacks, king Willem Alexander said on Tuesday afternoon, in his official speech to mark the start of the parliamentary year. We could not provide this service without you. The measures include: _____________________________________________________________________________________________________________. The decree is expected shortly. Executive summary. Amendment of the credit for certain withholding taxes against Dutch CIT for certain investors. Sandra Phlippen, Bill Diviney, Aline Schuiling, Arjen van Dijkhuizen, Nora Neuteboom, Global Daily – German industry still stuck below pre-crisis levels, Global Daily – PMIs herald eurozone double dip. Research into a more equal taxation of equity and debt. Here is a round up of the main news, reactions and useful links. The CPB’s macroeconomic outlook, summary in English The CPB  says the coronavirus crisis is having the greatest impact on vulnerable groups, including young people, the self-employed and migrants. Additionally, the Dutch government continues to combat perceived abusive tax structures in line with international tax proposals and has introduced further measures to support economic recovery from the COVID-19 crisis. The government published its 2021 spending plans on Tuesday. Netherlands: Tax package for 2021, other measures presented on Budget Day Netherlands: Tax package for 2021 On Budget Day (15 September 2020), the Dutch government presented the “2021 Tax Plan” package to the Lower House of Parliament. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. The measure will be introduced as an amendment to the Proposals and is set to enter into force by 1 January 2021. Several COVID-19 measures previously taken by the Dutch Government have been set forth in the legislative proposals. All Rights Reserved. However, the offset of losses will be limited in a given year against the first €1 million of taxable profit. Given the complexity of the matter and the potential impact on the overall Dutch tax regime, any changes to the fiscal regime will be left at the discretion of the new government (general elections will be in March 2021). The government stated that it aims to be a source of stability in these ‘complex and unpredictable times’ by taking action on three fronts. The final version of the Proposals are expected to be enacted in December 2020. Cookies  |  For taxable profit in excess of this amount, losses may only be offset up to 50% of this excess. (Jolien van den Ende), Fixed Income Strategist- European government bonds & Rates markets. More information on the cookies we use can be found here. The top Dutch corporate income tax rate will remain at 25%, i.e., the earlier enacted reduction to 21.7% will not happen in 2021. On 15 September 2020, the Dutch government published the Dutch budget proposals (the proposals) for fiscal year 2021. “It’s like steering in mist,” he said. We gebruiken cookies om er zeker van te zijn dat je onze website zo goed mogelijk beleeft. Fiscal unity regime – in June and July of 2019 an internet consultation took place regarding the future of the Netherlands fiscal unity regime following certain EU court cases. The Dutch Government intends to introduce legislation that limits the availability for a refund of dividend withholding tax (and gambling) tax for Dutch corporate taxpayers, pursuant to the. Criticism, optimism and wrong priorities: Mixed reactions to the 2021 budget A round-up of political reactions ahead of the two day debate on the budget. As is standard practice by the DSTA, it uses the money market to absorb shocks in its borrowing requirement. Executive summary. For 2021, the government forecasts economic growth of 3.5%, following a 2020 forecasted economic contraction of 5%. The top Dutch corporate income tax rate will remain at 25%, i.e., the earlier enacted reduction to 21.7% will not happen in 2021. The final version of the proposals are expected to be enacted in December 2020. The Netherlands must be ready for serious economic setbacks, says king The Netherlands must ready itself for serious economic setbacks, king Willem Alexander said on Tuesday afternoon, in his official speech to mark the start of the parliamentary year. Further guidance is proposed to address certain overlapping situations of the Dutch anti-hybrid rules and the other interest deduction limitation rules. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. Marco van Basten: ‘It was a very big fall and a really dark time’, How US neocons inspired the Netherlands’ new radical right, The wide world of disease-based Dutch profanity. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. Photo: Rijksoverheid/Valerie Kuypers via Wikimedia Commons. Public debt is rising again too, the Dutch government added. In addition, amendments to existing anti-base erosion rules have been announced. This should be determined per loan. The significant decrease in the budget deficit reflects the high uncertainty related to these unprecedented times.