On 15 October 2018, the Dutch government announced tax measures aimed at further improving the investment climate, including a further reduction of the main corporate income tax rate in 2021 to 20.5%.
These proposed tax measures follow the decision of the same date to no longer abolish the Dutch dividend withholding tax. Further to and in connection with this, the earlier proposed new conditional withholding tax on dividends to low-taxed entities and in abusive situations will be reconsidered. The already announced proposals to introduce a conditional withholding tax on royalties and interest to low-taxed entities and in abusive situations are still expected to come into force as of 1 January 2021.
