Corporate income tax

Temporary transitional law mutual funds
As of 1 January 2025, the definition of a mutual fund (“fonds voor gemene rekening”) has been amended. This has resulted in certain investment funds, particularly partnerships, which were previously tax transparent, becoming tax non-transparent as of 1 January 2025 if they meet the (new) mutual fund conditions.  The non-transparency for tax purposes does not apply to funds whose participations can in principle only be sold to the fund itself (repurchase fund). A transitional measure is already in place, under which funds have been given until 1 January 2026 to make the transition to a repurchase fund, subject to certain conditions.

However, due to remaining issues that have been identified, a temporary transitional measure is now also being proposed, pending a possible new definition of the mutual fund. Under the proposed transitional measure, entities that would become taxable in the Netherlands as of 1 January 2025 and that qualified as tax transparent on 31 December 2024 may, under certain conditions, choose to remain tax transparent and thus temporarily not to be classified as mutual fund. This will prevent short-term independent tax liability for this specific situation. The possible change to the mutual fund definition will take effect on 1 January 2027 at the earliest. The transitional law will apply until this new definition takes effect, but no later than 1 January 2028.

Adjustment to minimum capital rule

The minimum capital rule is a specific interest deduction limitation rule in the Dutch Corporate Income Tax Act for banks and insurance companies, intended to achieve a more equal treatment of equity and debt capital, in line with the general interest deduction limitation rule in article 15b of the Dutch Corporate Income Tax Act.

As of 1 January 2024, this measure includes an exception for interest expenses on debts to group entities, which are common among banks and insurance companies. Under certain conditions, these interest expenses will fall outside the scope of the minimum capital rule, meaning that they will not be subject to the deduction limitation. This exception for internal liquidity management appears to also apply, unintentionally, to loans directly related to loans obtained from individuals (such as deposits). It is proposed that, for financial years starting on or after 1 January 2026, such situations will be excluded from the exception for internal liquidity management.

Announced adjustment to hedging of currency results

Following a judgment by the Supreme Court earlier this year on the liquidation loss scheme, there is now a risk that losses could be taken into account twice. In order to close this budgetary gap, the tax treatment of results on currency risk hedging instruments is to be adjusted as of 1 January 2027. Currently, the costs of the hedging instrument are still fully deductible, while the expected profit is exempt or the expected losses are non-deductible. The legislator has indicated that it considers it important to allow a deduction only if there is a corresponding levy. The exact form of the adjustment is still unclear. The announced changes will be submitted for internet consultation.

Introduction of a non-aggregation rule to calculate the maximum investment amount for the Energy Investment Allowance

The government proposes to introduce a statutory non-aggregation rule for the Energy Investment Allowance (EIA). This rule will be introduced to deal with situations where taxpayers make energy investments in both their own company and in a company that is part of a partnership. Without such a rule, this could add up to more than EUR 151 million (amount for 2025) in energy investments being taken into account for the application of the EIA. A non-aggregation rule will therefore be introduced on 1 January 2026 to prevent this unintended consequence. This means that, regardless of whether the energy investment is made in their own company or in a company that is part of a partnership, each taxpayer can take into account a maximum of EUR 151 million in energy investments for the EIA each year.

Second Bill amending the Dutch Minimum Taxation Act 2024

The Second Bill amending the Dutch Minimum Taxation Act 2024 proposes a number of amendments to align the Dutch Minimum Taxation Act 2024 (“DMTA 2024”) with the latest Administrative Guidances (“AG”) as issued by the Organisation for Economic Co operation and Development (“OECD”). A large portion of the proposed changes concern AGs published up to, most recently, last January. It appears that the proposed changes are the last remaining elements that require changes to the legislation. Elements that are not explicitly codified in legislation are, in the legislator’s view, already applicable in the DMTA 2024, given that they are of an interpretative nature and that Directive 2022/2523 provides for a dynamic applicability of such interpretative guidance. The bill also contains technical improvements, such as clarifications and corrections of cross references.

The choice has been made to give as much retrospective effect as possible to AGs that are favourable to taxpayers, and to incorporate other AGs for reporting periods beginning on or after 31 December 2025. It can be questioned whether this objective is in fact achieved for certain retroactive changes. This choice also raises the question of how to deal with a provision that changes from one year to the next where the change is not fully retrospective. For example, it remains unclear how a provision should be treated in the period preceding the effective date of a legislative amendment.

Certain more technical AGs are not dealt with in the bill itself. Instead, delegative acts are introduced. Finally, it is worth noting that the implications of the G7 statement with respect to the United States are not addressed in the documents; we refer to our alert for a more detailed explanation.

Bill implementing the EU Directive on the exchange of top-up tax information returns

The Bill implementing the EU Directive on the exchange of top-up tax information returns seeks to amend the Dutch Bill on International Assistance in Taxation Matters and the DMTA 2024 to implement Directive (EU) 2025/872 (commonly referred to as ‘DAC9’). That directive governs the automatic exchange of top-up tax information returns between Member States in relation to the minimum taxation (from which the DMTA 2024 ensued, too).

The bill facilitates the ability for groups to file a single central top-up tax information return in only one EU Member State, rather than in every Member State. The Member State of filing then distributes the relevant parts to other Member States to the extent required under DAC9. Thus, certain parts of the top-up tax information return will not be shared with Member States that do not have taxing rights over the profits of a particular jurisdiction. The proposed act is intended to enter into force on 1 January 2026.

DAC9 is based on the Multilateral Competent Authority Agreement published by the OECD. The Netherlands is also a party to that agreement. That agreement enables automatic exchange of top‑up tax information returns between the Netherlands and non EU jurisdictions.

Income policy

The government wants to make work more rewarding and is therefore investing in an increase in the employed person's tax credit. This will be covered by a lower decrease in the rate of the first bracket of wage and income tax. This will bring the purchasing power development of workers closer to that of benefit recipients.

In addition, inflation in 2026 will only be partially (52.8%) offset by an increase in the bracket limits and tax credits. The limited application of the inflation adjustment also has consequences for the limits in the small projects investment credit (KIA), the maximum amounts for green investments and cash, the assessment and refund threshold and the highest limit of the value of an owner-occupied home for the imputed income from homeownership.

Adjustment to Box 1 rate structure

The proposed rate structure is as follows:

The rates in Box 2 (first bracket 24.5% and second bracket 31%) and Box 3 (36%) remain unchanged.

SME profit exemption and self-employed persons’ tax deduction

The SME profit exemption (MWV) will remain at 12.70% in 2026. The self-employed persons' tax deduction will be further reduced to EUR 1,200 in 2026. In 2025, this deduction still amounts to EUR 2,470.

Measures affecting the lucrative interest scheme

At the taxpayer's request, the benefits from an indirectly held lucrative interest can be taxed in Box 2 rather than as income from other activities (ROW) in Box 1. This is subject to the condition that at least 95% of the lucrative interest income received in a calendar year be paid out as income from a substantial interest. The government proposes to broaden the tax base for income from an indirectly held lucrative interest by means of a multiplier. This will increase the effective tax burden on the relevant income from 24.5% to 28.45% for lucrative interest income taxed in the first tax bracket of Box 2, and from 31% to 36% for lucrative interest income taxed in the second tax bracket of Box 2. This measure is not limited to lucrative interests held by private equity managers but applies to all qualifying interests.

Adjustment to the fixed-rate return on other assets in Box 3

The government proposes to adjust the method of calculating the fixed-rate return for other assets in Box 3 and to lower the tax-free wealth threshold in order to offset the budgetary loss resulting from the postponed introduction of the Box 3 Actual Return Act (until 1 January 2028). The fixed-rate return for other assets will increase by 1.78 percentage points to 7.78% and the tax-free wealth threshold will be lowered from EUR 57,684 to EUR 51,396.

Exclusion from application of value with vacant possession ratio for affiliated parties not acting on market conditions

From 1 January 2026, the value with vacant possession ratio can no longer be applied to properties let to an affiliated party of a taxpayer with the tenant receiving tenant protection while the rent or lease price is not in line with market conditions. This applies to both income tax and gift and inheritance tax. Furthermore, a ruling by the Supreme Court will be codified, replacing the value determined using the value with vacant possession ratio with the market value if the former is more than 10% higher.

Repair of Box 3 rebuttal scheme for bonds and other assets with short-term maturities

With retroactive effect to 25 August 2025, at 16.00 hours, the calculation of the actual return in the Box 3 rebuttal scheme with regard to bonds will be adjusted. From now on, bonds and securities comparable to bonds will be valued at market value, i.e., the value including accrued interest. This had not been the case before. It is also proposed to abolish the exemption for short-term maturities (with the exception of bank balances), as a result of which accrued interest will no longer be exempt. This combination of measures will ensure that the actual return on these assets is distributed more evenly over different tax years.

Adjustments to green investments

Technical reasons prohibit the abolition of the Box 3 exemption and the tax credit for green investments effective from 1 January 2027. However, the government’s proposal to implement a low exemption amount for green investments of EUR 200 per taxpayer effectively means that the schemes will be abolished as from 1 January 2027. The final abolition of the exemption and the tax credit for green investments will come into effect on 1 January 2028.

Reduction of extraterritorial costs scheme (ETC scheme)

Employers have the option of paying employees a tax-free reimbursement of extraterritorial costs (ET costs) incurred during temporary stays outside their country of origin, as part of their employment. The government proposes to reduce this ETC scheme. As from 2026, according to this reduction, the additional costs for living expenses, including costs for gas, water, electricity and other utilities, will be excluded as ET costs that can be reimbursed or provided tax-free. From 2026, calling costs for private purposes with the country of origin will be excluded as ET costs as well.

The government considers it desirable for the ETC scheme to solely apply to ET costs directly related to employment and not already factored into the employee’s salary. Likewise, the government states that the reduction of the ETC scheme is in line with a more targeted labour migration policy, even though the impact is expected to be limited.

Employees who are seconded abroad by a withholding agent (seconded employees) will continue to be eligible for a tax-free reimbursement of additional living expenses and calling costs for private purposes.

The expatriate scheme will not be reduced any further beyond the previously implemented reduction from 30% to 27% effective from 1 January 2027. This meets the Dutch business community’s desire to maintain a stable expatriate scheme.

Pseudo final levy on non-zero-emission lease cars

In making the passenger car fleet more sustainable and to meet Dutch climate targets, the government has decided to introduce a pseudo final levy at a rate of 12%. This will apply to the value of fossil fuel passenger cars that employers make available to their employees. Two groups are distinguished in this respect. The first group regards passenger cars that employers also make available for private use, including commuter traffic. The second group regards passenger cars that employers make available exclusively for business purposes. The pseudo final levy does not apply to the latter group. Delivery vans, too, are excluded from the scope of the pseudo final levy.

The first time when the pseudo final levy will be payable for fossil fuel passenger cars made available by the employer for private purposes will be on or after 1 January 2027. If an employer has already provided one of its employees with a passenger car that can also be used for private purposes before 2027, a transition period will apply until 17 September 2030. After the transitional period, the pseudo final levy will apply to all fossil fuel passenger cars that are also made available for private purposes.

Clarification of bicycle scheme

An addition for wage tax purposes applies to the provision of bicycles (whether non-electric or electric) that are also available for private purposes. According to the clarification, when a shared bicycle is occasionally used for private purposes this addition is set at zero. This applies, for example, to hub, service, public transport and other types of shared bicycles used for commuter traffic and other business trips.

It is proposed that the zero addition for a bicycle made available should take effect retroactively to 1 January 2020, i.e., the date on which the addition came into effect. For bicycles made available that are parked at the employee’s home or place of residence no more than incidentally, a zero addition will also apply with retroactive effect to 1 January 2020.

RVU threshold exemption will become structural

The RVU threshold exemption (‘RVU’ refers to the early retirement scheme, or Regeling Vervroegd Uittreden) will be continued structurally from 2026 onwards and will include benchmark dates. The first benchmark date is in 2028. In making the RVU more accessible to employees whose income is low or who have a small supplementary pension, it is proposed to increase the current threshold amount (in net terms equal to a net state pension benefit) by EUR 300 per month. It is also proposed to gradually increase the rate of the pseudo final levy for an RVU in excess of the RVU threshold exemption: 57.7% in 2026, 64% in 2027 and 65% in 2028.

Start-ups and scale-ups

Effective from 1 January 2027, a tax scheme is expected to be included for wage tax purposes that provides for a narrowing of the tax base to 65% of the income from share options for employees of start-ups and scale-ups. This will impact the Box 1 levy for personal income tax purposes and make the effective tax comparable to the situation in which the share options would be taxed in Box 2. However, this measure is not part of the 2026 Tax Plan but will be submitted to the House of Representatives at a later stage through a separate bill.

Proposal for unequal fractions in marital community property

As of 1 January 2026, spouses who agree on a community of property with unequal fractions will, upon dissolution of the marital community property, be subject to gift or inheritance tax on the portion that exceeds the half of that community they are entitled to. The same applies to a final or periodic netting clause according to which the assets are divided other than equally. The spouses’ motive is not considered relevant in this regard. Transitional law is provided for though: marriage contracts that include a community of unequal fractions or a netting clause with a division other than in half and that were concluded before 16:00 hours on 16 September 2025, are not covered by the measure. If spouses amend their marriage contract after 16:00 hours on 16 September 2025 and change the share in the marital community property or the assets to be settled, the new regulations will apply to them from 1 January 2026.

Gifts within 180 days of death

Under inheritance law, gifts made by a testator within 180 days prior to their death are deemed to have been acquired upon the death of that testator. This provision means that these gifts are subject to both gift tax and inheritance tax and any gift tax paid may be deducted from the inheritance tax due.

For the sake of simplicity, the government proposes to amend this provision so that in such cases it no longer constitutes a gift, but only an acquisition under inheritance law. Hence, the recipient no longer has to file a gift tax return, the Tax Inspector no longer has to assess gift tax and it is no longer necessary to offset the gift tax paid against the inheritance tax. This measure will take effect on 1 January 2026 and, thus, the first time it will apply is to gifts within the scope of this fiction that were made no more than 180 days before 1 January 2026.

Equal statuses for biological children for gift and inheritance tax purposes

The Supreme Court has ruled that no distinction may be made for gift and inheritance tax purposes between children born in or outside of marriage, but left it to the legislature to eliminate the existing inequality. The government proposes a legislative amendment under which for gift and inheritance tax purposes a biological child is considered equal to a child who is related to the grantor or testator under family law. Thus, for the purposes of the Inheritance Tax Act 1956, a biological child will fall under the definition of ‘child’ and from now on they will be able to benefit from the same exemptions and rates as legal children. The child must, however, submit a DNA test to prove biological parenthood.

Extension of effective date of tax on interest relating to inheritance tax and inheritance tax return period

The statutory period of eight months for filing an inheritance tax return is considered too short in practice. Hence the proposal to extend this period to twenty months after the death. The starting point for calculating the tax on interest for inheritance tax purposes will be aligned with this. This proposed period will apply for the first time to deaths occurring on or after 1 January 2026.

Reduced VAT rate on culture, media and sports to be reintroduced

The increased VAT rate for culture, media and sports from 9% to 21%, that was part of the 2025 Tax Plan, will be reversed. However, the reduced VAT rate on accommodation (short stays in hotels, guesthouses and holiday accommodation) will be increased to 21% as of 1 January 2026. A Socialist Party (SP) motion to also withdraw this change has not been adopted. Another motion by the alliance of Greens and Social Democrats, Groenlinks/PvDA, to withdraw this change has been postponed (it has not yet been voted on). Pro-farming party BBB supports this motion and will submit a proposal during the debate on the 2026 Tax Plan, as research shows that the expected tax revenue will not be achieved by a long shot and that the increase will have negative effects instead, especially in the border regions.

Fuel excise duty reduction

The temporary reduction in excise duty on unleaded petrol, diesel and LPG was due to end on 1 January 2026, but will be extended for another year until 31 December 2026. There will also be no indexation in 2026, so excise duty rates will remain the same. On the other hand, the planned reintroduction of red diesel for agricultural vehicles will not go ahead.

Consumption tax on non-alcoholic beverages

A measure is proposed to prevent the consumption tax on non-alcoholic beverages from being evaded by adding a small amount of dairy to soft drinks or fruit juices. The exemption for dairy and soy beverages will be reformulated as of 2026, so that it will only apply to the purest dairy and soy beverages. Furthermore, the definition of the term 'lemonade' will be changed to 'other non-alcoholic beverages'.

Bill to amend the Environmental Management Act in connection with the further operationalisation of the carbon border adjustment mechanism

The Carbon Border Adjustment Mechanism (CBAM) is a mechanism for carbon adjustment at the European external border and is regulated by a European regulation. The CBAM focuses on a selection of goods within certain sectors. The CBAM requires payment for the CO2 emissions released during the production of CBAM goods. This ensures a fairer competitive position for companies within the EU and helps to combat 'carbon leakage', i.e. the relocation of production within the EU to countries where companies do not have to pay for their CO2 emissions, or pay less. The CBAM Regulation is directly applicable and therefore does not need to be transposed into national law, but additional provisions in the Environmental Management Act are still required for its operationalisation.

In 2023, an amendment to the Environmental Management Act was implemented for the purpose of implementing CBAM during the transition period. This Act is now being amended and supplemented with powers for the implementation of CBAM as of 2026. This bill broadly covers two points. Firstly, the designation of the legal entity in the Netherlands responsible for the sale and repurchase of so-called CBAM certificates (i.e. the Minister of Finance). Secondly, a prohibition on acting in contravention of a number of provisions of the regulation on penalty of imposition of national sanctions by the Dutch Emissions Authority (NEa), which is responsible for administrative supervision and enforcement.

Motor vehicle tax rate discount for electric cars

The motor vehicle tax rate discount for electric cars will be increased from 25% to 30% in the period from 2026 to 2028. By doing so, the government seeks to equalise tax rates for electric and petrol cars, because electric cars are considerably heavier. In 2029, a tax rate discount of 25% will once again apply.

Differentiation of air passenger tax

The government proposes to differentiate the air passenger tax rate. In 2025, the air passenger tax for each flight is EUR 29.40, regardless of distance. From 2027 onwards, this rate will only apply to flights of up to approximately 2,000 km (category A). For medium-haul flights, with a distance of approximately 2,000 to approximately 5,500 km, a rate of EUR 47.24 per flight will apply (category B). For long-haul flights, covering more than approximately 5,500 km, a rate of EUR 70.86 per flight will apply (category C). The final destination of the passengers is decisive for calculating the distance flown. However, there are a few exceptions. For example, flights to the Netherlands Antilles are classified in the category of flights up to 2,000 km. To avoid confusion, the countries that fall into categories A and B are listed in an appendix to the Environmental Taxes Act (Wet belastingen op milieugrondslag).

Energy tax reduction

An energy tax credit is provided in the form of a fixed amount that can be deducted from the energy bill each year, regardless of the user’s consumption of electricity or natural gas. This tax credit will amount to EUR 519.80 (excluding VAT) per qualifying connection in 2026, compared to EUR 524.95 (excluding VAT) in 2025. So, the net energy tax credit will be slightly lower.

Increase and abolition of tax ceiling on tap water

The government proposes to increase the tax ceiling on tap water from 300 m³ to 50,000 m³ as of 2026. As of 2027, the tax ceiling will be abolished entirely, meaning that tax will be levied on all water consumption. At the same time, the tax base will be narrowed to water of drinking water quality and the so-called 1,000 customer rule will be cancelled. Small collective water supplies, such as campsites and bungalow parks with their own sources, will remain outside the tax base.

Waste tax reforms

The government has decided not to introduce the planned polymer levy due to negative effects on competitiveness and limited budgetary revenues. To compensate, alternative measures are being proposed for waste tax and CO2 levy, which will be discussed with the waste sector.

• Increase in waste tax rate
  The waste tax rate will be increased from EUR 39.70 per tonne of waste in 2025 to EUR 92.95 per tonne of waste in 2028, rising to a structural EUR 154.26 per tonne of waste from 2035 onwards.
• Additional fee for landfilling with exemption
  An additional rate for landfilling with exemption (storten met ontheffing) will be introduced in 2029. This rate will be EUR 145.50 per 1,000 kg in 2029. Landfilling with exemption refers to the landfilling of waste that is normally subject to a landfill ban, but which may still be done with an exemption. In the following years, the rate will gradually increase.
• Abolition of exemption for sewage sludge
  The government proposes to abolish the waste tax exemption for sewage sludge as of 2027. However, the waste tax exemption will remain in place insofar as sewage sludge is taken to special sludge incineration plants.

CO2 tax on industry

Rates and dispensation rights for ETS1 and nitrous oxide plants

The CO₂ tax rate for ETS1 and nitrous oxide plants will be reduced to EUR 78.67 per tonne of CO₂ in 2026. In addition, the national reduction factor will be increased to 1.023 in 2026 and then kept constant, instead of being further reduced. A national reduction factor of just above 1 means that companies that perform at or just below the ETS benchmark for their total emissions will receive dispensation rights. Limited revenues from the CO₂ tax are expected to be realised in 2025 and 2026, which will be offset by carry-back in 2027 and 2028. The carry-back scheme will also be expanded.

Adjustments to CO₂ tax on industrial waste incineration plants

The government is gradually increasing the CO₂ tax for waste incineration plants to EUR 295 per tonne in 2030 in order to stimulate emission reduction and CO₂ capture and storage (CCS). Exempt fossil CO₂ emissions will be gradually phased out from 2030 to zero in 2033. Trading in dispensation rights will be limited to transactions between waste incineration plants.

Adjustment to right of access

The 2024 Tax Plan already included an amendment that provides for a legal right of access for citizens to their own tax files. However, the current design of the provision causes implementation difficulties for the Tax Administration. The government therefore proposes to abolish the request for access and subsequent decision open to appeal and instead stipulates that the Tax Inspector must proactively grant access to the documents relating to a case by digital means no later than the date of notification of the tax assessment. The Tax Inspector may only refuse to grant access to certain documents if confidentiality is required for compelling reasons. Taxpayers who believe that their digital file is incomplete can object to or appeal against the underlying tax assessment or decision. However, the introduction of the right of access will not be possible before 2032 and will take place gradually by designating national taxes by order in council. For national taxes that have not yet been designated, access may be granted by the Tax Inspector on an optional basis. For the time being, the scheme will not apply to taxes levied by local authorities.

Electronic Administrative Communications (Modernisation) Act

On 1 January 2026, a large number of provisions from the Electronic Administrative Communications (Modernisation) Act will come into force. This will ensure that administrative bodies cannot oblige citizens and businesses to use electronic means for official communications. At the same time, the right of citizens and businesses to send such messages electronically to the administrative body will be established. However, Tax Administration and Customs will be exempted until 1 January 2030 in order to allow them to make the necessary system adjustments.

Interest on overdue tax

The Budget Memorandum notes that the interest rate on overdue tax will be fixed at 4.25% (2025: 4%). Hence, there will be no link to the ECB main refinancing rate plus a surcharge, as is the case in the interest on tax scheme. It is also noted that the rate of interest on tax for corporate income tax purposes will not be reduced.

This adjusted time schedule is connected to the collapse of the government and the election recess.

House of Representatives

• Tuesday 16 September 2025: Submission of Tax Plan package on Budget Day.
• Monday 22 September 2025: Public technical briefing by Minister of Finance.
• Thursday 2 October 2025: Contribution to the report regarding all bills.
• Monday 17 November 2025: Legislative consultations (first period House) on the Tax Plan package.
• Wednesday 19 November 2025: Legislative consultations (first and second period government).
• Thursday 20 November 2025: First plenary hearing (first period House).
• Tuesday 25 November 2025: Second plenary hearing (first and second period government; motions).
• Thursday 27 November 2025: Votings on bills, amendments and motions.

Senate (intended time schedule)

• Friday 28 November 2025: Receipt of note on the report on the bill.
• Tuesday 2 December 2025: Submission of second report.
• Friday 5 December 2025: Receipt of note on the second report (ready for plenary hearing).
• Monday 8 and Tuesday 9 December 2025: Plenary hearing.
• Tuesday 16 December 2025: Voting.