Netherlands presents 2025 tax package affecting international firms

The Dutch Ministry of Finance has presented the 2025 Tax Package, which includes the 2025 Tax Plan and other fiscal measures. If approved by the House of Representatives, these measures are scheduled to take effect on January 1, 2025.

A key component discussed is the conditional withholding tax (CWHT). Since January 1, 2024, the scope of this tax has been expanded to include suspected dividend payments, in addition to interest and royalty payments made to affiliated companies in low-tax jurisdictions or in cases of suspected abuse, such as flow-through structures. The applicable tax rate is currently equal to the standard corporate income tax rate of 25.8%.