Go-ahead for emergency repairs to tax entity regime

The Advocate General of the European Court of Justice on 25 October 2017 ruled that the Dutch tax entity regime for corporation tax purposes was at odds in certain respects with EU regulations. The immediate response from the Netherlands was an announcement to the effect that emergency repairs would be implemented if and in so far as the European Court of Justice was to side with the Advocate General, as the ECJ has done since.

The proposed legislation providing for the requisite emergency repairs is scheduled for discussion by the Lower House of the Dutch Parliament during the second quarter of the 2018. One of the aspects to be addressed in the bill will be its retroactive implementation from 11.00 a.m. on 25 October 2017 onwards, which was when the announcement of the emergency measures was made. According to the State Secretary for Finance, the time has come for the Dutch tax entity regime to be overhauled and replaced by a corporate policy that is geared to the future.

Dutch version: Spoedreparatie fiscale eenheid gaat door