As we’re nearing the end of the year, we are pleased to offer you an overview of relevant developments and year-end attention points for the Investment Management industry. In this document, we are offering key takeaways for funds, and highlight how fund managers should anticipate the upcoming changes in the Dutch and international tax regulations.
In this year-end update we will, amongst others, touch upon:
- The changes in corporate tax and real estate transfer tax rates, which will be increased.
- Updated ATAD2 policy: recently, the Dutch state secretary of Finance published an updated decree on the application of the anti-hybrid mismatch rules (ATAD2).
- Overhaul of the Dutch tax classification rules: Mid-2021 we learned that the legislative proposal on new Dutch entity tax classification rules was postponed and that the FGR is no longer part of this proposal. 1.5 years later and it is still unclear when and how new tax classification rules will come into effect.
- ATAD3: A first proposal draft of the Directive to combat the misuse of shell entities was published in December 2021, which received a lot of input from various stakeholders.
- Announced changes to the investment institution regime: One of the ‘surprises’ of the 2023 Tax Plan was the prohibition for Dutch investment institutions from directly investing in real estate, coming into effect as per 1 January 2024.
- Recent case law on interest deduction: During 2022, the Dutch Supreme Court published several rulings regarding the tax deduction of interest payments of Dutch taxpayers, mainly in private equity structures.