The European Commission has decided to open a formal investigation procedure into planned reductions of Dutch tax rates for net interest received on intra-group loans. Currently in Holland, when a company injects capital into another company, the dividend it receives is tax exempt, whereas when it lends money, the interest received is taxed at the general corporate rate of 25.5 per cent. The Netherlands notified a proposal for a tax break scheme called “Groepsrentebox” aimed at lowering the tax rate on interest received in the context of intra-group financing from the general corporate tax rate of 25.5 per cent to 5 per cent. Although it appears to be open to all companies, the Commission considers that the scheme would de facto benefit groups of companies and not individual companies. The Commission has therefore decided to open a formal investigation procedure.