On September 15, 2011, the Dutch government published the 2012 Tax Package. Please fi nd below a summary of the relevant changes that are proposed. Since both the House of Representatives and the Senate have to approve the plans, signifi cant changes could occur. Most proposals included in the 2012 Tax Package are set to take effect on January 1, 2012.
- Restriction on the deduction of interest on acquisition debt in a fi scal unity to the extent that the interest exceeds EUR 1,000,000 and the company is thinly capitalized (debt-to-equity ratio 2:1).
- Dividend tax for cooperatives in abusive situations, i.e. if the cooperative is holding shares with the main purpose of avoiding dividend tax or foreign tax and the membership rights of the cooperatives are not part of the members’ business capital. This is equal to the current ruling practice. The measure also applies if the cooperative is interposed in an existing holding structure to the extent that Dutch dividend tax is evaded even if the membership rights of the cooperatives are not part of the business capital.
- Implementation of an object exemption for results generated through a permanent establishment. As a result of this, losses incurred through a foreign permanent establishment can no longer be offset against Dutch profi ts. Profi ts generated through a foreign permanent establishment will be exempt.
- A deduction for research and development costs other than wage costs.
- Extension of the refund scheme in the dividend tax to third countries with whom a suffi cient (bilateral or multilateral) agreement on exchange of information exists, provided that the investment is not a portfolio investment.
Amendment of the expat arrangement (30%-facility). This proposal is currently under debate in the House of Representatives.