Netherlands: Tax Plan 2024 - Adjustments and reduction of the 30% ruling

News on tax developments affecting the international Financial Services industry.

The Netherlands’ 2025 tax overhaul reshapes fund classification rules—this article explores its impact on foreign investors, fund structures, and the shift from opaque to transparent entities.

News on tax developments affecting the international Financial Services industry.

On 7 November 2024, the European Court of Justice (CJEU) issued a judgment (XX, C-782/22) regarding the levy of dividend withholding tax (DWT) on foreign insurance companies in light of the European free movement of capital.

This Budget Day special from Atlas Tax Lawyers lists the main proposals from the 2025 Tax Plan and additional parliamentary bills.

The EU Commission recently decided to initiate infringement proceedings against the Netherlands (INFR 2024/4017 of 25 July 2024).

On 25 July 2024, the European Commission published its decision to initiate an infringement procedure, which may force the Netherlands to reconsider their discriminatory taxation practice regarding the taxation of foreign investment funds which has been in place for years.

Major changes to the 30% tax ruling in the Netherlands starting 2024: gradual decrease of tax benefit.

On Budget Day 2023 (19 September 2023), legislative proposals were published for 2024 and onwards that could impact the real estate and the financial services industries.

On 21 June 2023, Belgium and the Netherlands signed the new double tax treaty. This treaty was a long-awaited one since the last version dated from 5 June 2001.

This Budget Day Special from Atlas Tax Lawyers outlines important proposals in the Dutch 2024 Tax Plan and additional bills for you.

Find out the latest on the implementation of public CbCR in the Netherlands and what it means for multinational enterprises. Discover key details and important next steps in this newsflash.

As of 1 January 2022, companies that qualify as a withholding agent for Dutch wage tax and so-called collective administering organisations are obliged to notify the Dutch tax authorities of payments made to per­sons who are not on the payroll

The Amsterdam Court of Appeal denied the dividend withholding tax exemption for a distribution to a Belgian family holding company due to lack of substance.

The 30% ruling is a specific tax regime for foreign employees who meet certain criteria and who are temporarily assigned to, or hired from abroad by an employer in the Netherlands.

February saw the Supreme Court of the Netherlands rule in a case concerning the conditions for forming a VAT group in the Netherlands.

On 22 December 2021, the European Commission (“EC”) published a proposal for a directive to prevent the abuse of shell entities for improper tax purposes (hereafter: “ATAD3 Directive”).

Effective 1 January 2022, the Netherlands have implemented a ground-breaking legislation to end its long-standing practice of allowing unilateral downward TP adjustments.

The Dutch government intends to introduce measures to (better) curb dividend stripping with respect to portfolio shares.

On 3 September 2021, the Appeals Court at ‘s-Hertogenbosch ruled in a case of a German real estate investment fund in contractual legal form (Immobilien-Sondervermoegen) – ‘the Fund’, with respect to its foreign tax payer status for its income from Dutch real estate in the years 1997/1998 until 2009/2010.

The Dutch Ministry of Finance kicked off an internet consultation on a draft proposal (the “Draft Bill”) to amend the Dutch codification of the arm’s-length principle. Group companies operating in the Netherlands are recommended to review their existing advance pricing agreements and/or tax rulings as well as their transfer pricing policies to assess the impact of this proposed amendment of the arm’s-length principle.

In the Netherlands, the Dutch Ministry of Finance has published a draft proposal under which downward adjustments would be limited in order to address transfer pricing mismatches when applying the arm’s-length principle.

On 9 April 2021, the Dutch Supreme Court ruled in a landmark case that will decide all pending cases where foreign investment funds claim the refund of Dutch dividend WHT suffered in years starting from 2008.

The finance ministers of the Group of Seven (G7) have agreed on a historic global tax deal on 5 June 2021. Read more in the latest newsflash by Atlas Tax Lawyers.

Our colleague Denis Pouw provides insight on the most interesting developments of 2020 regarding the Dutch "dividend tax" on portfolio dividends received from foreign investment funds.

Dutch authorities concluded an agreement with the Belgian and German authorities to mitigate the tax and social security
impact from working from home.

In an example, our colleagues from the Netherlands describe the field of tension in which the OECD regulations and Dutch tax laws on the deductibility of intra-company financing are currently moving.

As per 1 March 2020, service providers from the European Economic Area and Switzerland need to register new temporary assignments in the Netherlands ultimately 5 days before the start of employment online. 

The European Commission (EC) concluded an APA

Overview of the resulted transitional law

OECD Released Workplan

It is recommended to investigate the status of (possibly) existing permanent establishments in the light of the expected changes

Three members of the Dutch House of Representatives jointly prepared a legislative proposal that should limit the current liquidation loss scheme and the related cessation loss scheme

After consultation with the maritime sector, the changes were postponed until 1 January 2019

Summary of the VAT relevant topics