Corporate income tax
1. Foreign exchange results on hedging instruments
For financial years starting on or after 1 January 2027, the Dutch participation exemption may, at the taxpayer’s request, apply to non-priced-in foreign exchange results on instruments hedging currency risks relating to a participation. Priced-in foreign exchange results will not qualify and will therefore remain taxable or deductible. The proposal also introduces a fair market value adjustment when a hedging instrument enters or leaves the scope of the participation exemption and amends the request procedure accordingly. Transitional rules apply to certain existing hedging instruments.
2. Business merger and demerger facilities
Following the Dutch Supreme Court judgment of 27 February 2026 holding that the statutory presumption under the demerger facility is incompatible with the EU Merger Directive, the corresponding presumption for business mergers and demergers will be abolished. Under current law, a business merger or demerger is presumed not to be based on valid business reasons where shares in a restructuring entity are transferred, directly or indirectly, to an unrelated party within three years. After abolition, the tax authorities will in principle have to provide initial evidence that valid business reasons are absent or that there are indications of tax avoidance or deferral. The related advance certainty procedure will also be abolished.
3. Expansion of the lump-sum innovation box regime
The lump-sum innovation box regime will be expanded. The maximum amount of qualifying profits will increase from € 25,000 to € 100,000, making the regime more accessible to innovative small and medium-sized enterprises.
4. Increase of the Energy Investment Allowance
The Energy Investment Allowance (EIA) will be increased from 40% to 45.5%. The EIA provides an additional deduction for investments in qualifying energy-efficient assets and sustainable energy technologies.
5. Exemption from the earnings stripping rule for housing corporations
The government has announced that housing corporations will be excluded from the scope of the earnings stripping rule as of 1 January 2028. The measure is not included in the Tax Plan 2027 and is expected to be introduced by way of an amendment.
Dividend withholding tax
6. Dividend withholding tax refund for Dutch investors in foreign investment institutions
Following the Dutch Supreme Court judgment of 13 September 2024, a refund mechanism will be introduced for Dutch resident investors that are entitled to Dutch-source dividends through a foreign investment institution. The mechanism aims to prevent Dutch-source dividends received through a foreign investment institution from being economically more heavily taxed than comparable dividends received through a Dutch fiscal investment institution. Subject to certain conditions, these investors may claim a refund of Dutch dividend withholding tax withheld on Dutch-source dividends received by the foreign investment institution.
Income tax
7. Acquisition price of a substantial interest following a transfer of effective management to the Netherlands
Where a company transfers its effective management to the Netherlands, the acquisition price of a substantial interest held by a non-resident shareholder will generally be stepped up to fair market value. Only changes in value arising after the transfer will therefore be taken into account for Dutch income tax purposes.
8. Future of Box 3
The proposed Box 3 regime based on actual returns is still pending before the Dutch Senate. The government is considering alternative approaches. In the meantime, the current deemed-return regime will continue to apply in 2027, including the possibility to claim taxation based on a lower actual return.
Wage tax
9. Employee stock options for start-ups and scale-ups
A new tax regime will be introduced for employee stock options granted by qualifying start-ups and scale-ups. To qualify, the employer must obtain a decision from the Minister of Economic Affairs and Climate confirming its status as a qualifying start-up or scale-up. Taxation will generally be deferred until the shares acquired upon exercise are sold. At that point, 65% of the resulting benefit, after deduction of the exercise price, will generally be included in taxable wages. The regime is subject to several conditions, including a restriction on the transfer of the shares during the first two years following the grant of the option. Stock options and shares that qualify as a lucrative interest will be excluded from the regime, preventing circumvention of the multiplier for indirectly held lucrative interests scheduled to take effect in 2028.
10. Reduction of the Dutch expat ruling
As of 1 January 2027, the maximum tax-free allowance under the Dutch expat ruling will be reduced from 30% to 27%. The applicable salary threshold will also be increased.
Real Estate Transfer Tax
11. Reduced RETT rate for non-main-residence residential property
The real estate transfer tax rate for residential property other than the acquirer’s main residence will be reduced from 8% to 7%. The reduction does not apply to non-residential real estate.
12. RETT exemption for housing corporations
A real estate transfer tax exemption will be introduced for transfers of real estate between housing corporations. The exemption applies to real estate used for qualifying services of general economic interest and aims to facilitate transfers within the scope of the corporations’ social housing activities.
European tax law
13. Pillar 2: Side-by-Side safe harbour rules
The Dutch Minimum Tax Act 2024 will be amended to implement four new safe harbours agreed as part of the OECD/G20 Inclusive Framework’s Side-by-Side package. These are the Simplified ETR Safe Harbour, the Side-by-Side Safe Harbour, the UPE Safe Harbour and the Substance-based Tax Incentive Safe Harbour. The Simplified ETR Safe Harbour will apply to fiscal years beginning on or after 31 December 2025. The other three new safe harbours will apply retroactively from 1 January 2026. In addition, the transitional CbCR Safe Harbour will be extended by one year.
Contact
Please feel free to contact our Houthoff Tax Team to discuss any of these proposals.
You can find the various proposals here (in Dutch).