Netherlands publishes comments on draft Minimum Tax Rate Act

Netherlands publishes comments on draft Minimum Tax Rate Act

The Dutch government has published 15 responses to its public consultation on the draft Minimum Tax Rate Act, 2024.

On October 24, 2022, the Netherlands launched a technical consultation to implement a minimum corporate tax rate of 15 percent with effect from January 1, 2024. This measure would ensure that multinational enterprises (MNEs) are subject to a corporate tax rate of at least 15 percent, preventing them from shifting profits to low-tax jurisdictions to minimize their overall tax liability.

The Dutch government has received input from Grant Thornton, the Dutch Association of Tax Advisers, the Royal Association of Netherlands Shipowners, American Chambers of Commerce in the Netherlands, among others.

In October last year, 137 countries reached agreement on a minimum rate of 15 percent.

At the end of 2021, the European Commission published the first draft of a proposed directive setting out model rules for EU member states. On December 6, 2022, the Economic and Financial Affairs Council (ECOFIN) was expected to adopt the proposed directive, but the voting could not be held.

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