Tax accounting considerations - 2020 Tax Plan

19 december 2019
Tax accounting considerations

On December 17, 2019, the 2020 Tax Plan package has been accepted by the Dutch Senate and therefore substantively enacted under IFRS. Many of the proposed measures will take effect on January 1, 2020 or as from the financial year that starts on or after January 1, 2020.

This memorandum outlines the main tax accounting consequences of the 2020 Tax Plan under IFRS and the impact it may have on the tax position of your financials. We have outlined the following main tax accounting consequences:

  • Partial reduction of Corporate income tax rates
  • revision earnings stripping decision
  • interest deduction limitation rules for banks and insurers
  • revised definition of permanent establishment  
  • ATAD2 against hybrid mismatches: CIT consequences
  • Limitation of the liquidation and cessation loss scheme (2021)
  • Increase of Innovation Box rate (2021)
  • ATAD2 against hybrid mismatches: WHT consequence
  • Substance requirements and dividend withholding tax and CFC
  • Withholding tax on interest and royalties as of 2021

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