Dutch Minimum Tax Act

Relevant proposed amendments to the Dutch Minimum Tax Act 2024

As you may know, on September 17, 2025, the Dutch Budget Plan 2026 was published by the Dutch Government. The Budget Plan 2026 provides a separate legislative proposal aiming to incorporate the remaining OECD administrative guidance on Pillar Two issued in December 2023, June 2024, and January 2025, as well as several technical amendments to the Dutch Minimum Tax Act (Dutch MTA).

Incorporation of OECD Administrative Guidance – key legislative proposals

The proposal aims to transpose the remaining OECD guidance into Dutch law, including the following key items: 

• Definitions and treatment of hybrid and transparent entities.
  • Aimed effect by the legislator: removing uncertainty around classification of flow through entities that are directly held by other flow through entities. The classification of the ownership interest in a flow through entity as tax transparent or reverse hybrid entity should be made by the closest non-flow through entity owning the ownership interest – in line with the June 2024 Guidance.
  • Proposed effective date: December 31, 2023.
• Treatment of deferred tax assets (DTAs) arising from certain tax benefits provided by General Government (i.e., all levels of federal, state, regional, local government) and DTAs and deferred tax liabilities (DTLs) resulting from the introduction of a new corporate income tax.
  • Aimed effect by the legislator: The tax expense resulting from the reversal of DTAs arising from tax benefits provided by General Government (i.e., all levels of federal, state, regional, local government) or DTAs and DTLs following the introduction of a new corporate income tax after 30 November 2021  should be excluded from Covered Taxes for purposes of the application of the GloBE rules and from Simplified Covered Taxes for purposes of the application of the Transitional Country-by-Country Reporting (CbCR) Safe Harbour rules.– in line with the January 2025 Guidance. 
  • Proposed effective date: December 31, 2025.

Other proposed implementations

• Clarification that Covered taxes reported as expenses rather than income tax are also part of Adjusted Covered Taxes.
• Guidance on mismatches between the fiscal year of the Ultimate Parent Entity and other Constituent Entities (as included in the December 2023 Administrative Guidance).
• Guidance on the adjustments to Qualified Financial Statements (as included in the December 2023 Administrative Guidance).
• Guidance on treatment of divergences between Global Anti-Base Erosion (GloBE) and accounting carrying values and the treatment of deferred taxes resulting from the divergences (as included in the June 2024 Administrative Guidance).

Furthermore, the legislative proposal includes the clarification that joint ventures and the entities affiliated with the joint venture are considered to be Constituent Entities. Consequently, joint ventures and the entities affiliated with the joint venture may be subject to the domestic top-up tax (QDMTT) if they are established in the Netherlands and the effective tax rate is less than 15%. Proposed effective date 31 December 2023.

The Dutch government deemed it reasonable to introduce many of the proposed changes retroactively to December 31, 2023, to the extent not harmful to taxpayers. We note that the G7 developments and the announced side-by-side solution are not mentioned in the legislative proposals. For further reference to the G7 developments we refer to our tax alert: G7 issues statement on global minimum taxes | EY - Global.

Finally, the Tax Plan 2026 proposes to implement the amendment of the EU Directive on Administrative Cooperation (also known as DAC9) in Dutch law as per January 1, 2026. As such, MNEs would only need to submit a single top-up tax information return for all EU jurisdictions in a single EU Member State. 

We will continue to monitor developments and provide updates as the legislative process progresses. If helpful, we would be happy to schedule a call to discuss the potential impact of these changes on your group and any preparatory actions ahead of 2026.