Budget day 2021 – Wage tax & social security

DUTCH BUDGET UPDATE 2021 – Wage tax & social security

On Budget Day, September 15, 2020, the Dutch government presented the 2021 Tax Plan. We have listed the most important changes proposed for Dutch wage tax & social security (Items 1-4). In addition, we have included some relevant items that have already been implemented or will be implemented in the near future (Items 5-8).

Dutch Budget Day Update 2021

On 15 September 2020 the Dutch government published its 2021 tax plans. They are as expected without any breaking news. Together with earlier announced proposals, the following key tax items are now on the 2021 corporate tax agenda:

• Introduction of a COVID-19 tax reserve.
• Introduction of a new conditional withholding tax on interest & royalty payments to affiliated entities in selected low-tax and non-cooperative countries (see country list below).
• Certain investment tax benefits.
• Enhanced substance rules for Dutch financing & licensing companies, including a ≥ €100k payroll requirement, to avoid automatic-exchange-of-information.

See details on these and other relevant legislative proposals below.

Taxand Netherlands contributes to Lexology Transfer Pricing Guide

Covering the latest developments in transfer pricing law across the globe, the “Transfer Pricing 2021” publication by Lexology contains updates on topics including: transfer pricing methods, OECD Transfer Pricing Guidelines, permissible cost-sharing arrangements, transfer pricing adjustment rules, “safe harbour” methods, required disclosures and documentation, agencies responsible for enforcement, income tax treaty networks, relief (and its limitations) from double taxation, advance pricing agreements, and any potential tax exemptions or rate reductions available via government bodies.