On 21 September 2021, the Dutch government published its 2022 tax plans. They are largely as expected without any breaking news – in line with the current outgoing status of the cabinet.

Together with earlier announced proposals, the following key tax (corporate) tax items are now on the 2022 tax agenda:

  • CIT Brackets: Regular CIT rate remains 25%, with an extension to EUR 395k (2021: EUR 245k) of the step-up bracket taxed against 15%.
  • Tax losses: As of 1 January 2022, tax losses can be carried forward indefinitely. However losses may be offset in full against taxable profits up to EUR 1 million, the set-off will be limited to 50% for taxable profits in excess of the EUR 1 million.
  • Reverse hybrids: Reverse hybrid entities will be treated as Dutch tax residents for corporate income tax purposes. Furthermore, they will become a withholding agent for the dividend WHT act and the conditional WHT act on interest and royalties. There are certain exemptions for investment funds.
  • ATAD 2 for individuals: ATAD 2 rules will also apply if a hybrid mismatch arises between a Dutch taxpayer and a related individual.
  • Sofina: No more dividend refund for Dutch taxpayers only credits.
  • Transfer pricing mismatches: Proposal to avoid double-non-taxation arising from transfer pricing mismatches.
  • Conditional WHT: Technical changes to the conditional interest and royalty withholding tax.
  • Employee stock options: Amendments to the taxation of employee stock options.

Continue reading: Netherlands Budget Day Update 2022

Further contact:

Evert-Jan Spoelder, Partner, Taxand Netherlands or Karel Pellemans, Partner, Taxand Netherlands

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