This will come into effect before January 2024. Whether that happens depends on the Tweede Kamer’s standing finance committee, which decides whether the BES 2024 islands tax plan bill is controversial, yes or no.
The Dutch government is resigning, and that means that the Tweede Kamer has to decide what issues the cabinet can continue to work on and what issues are controversial, which means that this issue has to be left to the new cabinet. Seeing this, Van Rij sent a letter to Tweede Kamer, in which he says it is good to come now with adjustments and improvements. The current tax system dates from 1 January 2011. Since then it has made some changes to resolve issues that arose in the implementation. Van Rij writes that in general the tax system on the BES islands is the same as in 2011 and there are some definitions and sections that need to be improved. The starting point of the exchanges is a list that Van Rij sent in May. On Thursday there will be a look at what are the desired changes that are coming in the proposed law.
Annex: Topics included in the Caribbean Netherlands 2024 Tax Plan General provisions
- A tightening of the concept of ‘passenger car’. This improves the taxation of
In the case of the motor vehicle of the undertaking, the tax on wages and salaries and the general tax on profits.
(b) the excise duty (in respect of the importation of motor vehicles).
- Various typographical errors and incorrect amendments to the Tax Act BES, the Act
In the case of the latter, the Court of Justice has ruled that, in the absence of a ruling by the Court of First Instance on the application of the principle of equal treatment for men and women in matters of social security, the principle of equal treatment for men and women in matters of social security is not applicable.
the restoration of various subordinate laws and regulations.
Real estate and income tax (including establishment tax)
- A tightening of the activity test for the issuance of the It is not possible for a Member State to impose an obligation on a Member State to provide for a place of business and to relax its retroactive effect.
- Further relaxation of the holding criterion for a decision on the place of establishment for
The 95% test for operating companies is applied to all types of holding companies. reduced to 50%).
- A change in the rate of property tax for hotels (from 10% to 12,5%).
- Property tax reporting for owners of immovable property business.
- Adjustment of the rate of income tax; it is increased from 5% The increase in the tax-free allowance for wages and salaries was mainly due to the to finance income tax already increased as of 1/1/2023.
General consumption tax (GST)
- In the ABB, the integration levy is abolished; a complex provision from the VAT legislation
the acquisition for the construction of real estate on own land.
- A fiscal unit is introduced in the ABB, mainly to prevent cumulation (ABB over ABB) between associated enterprises that cooperate extensively with each other.
- There are going to be some minor changes to the billing system.
- The small enterprise scheme will be increased, so that more small enterprises will not have to pay the cost of the scheme.
ABB have to pay.
Formal rules
- The legal framework for electronic declaration will also be extended.
- without requiring everyone to actually file electronically by 2024.
- There will also be an extended notification requirement for supplementary declarations; in those cases where the taxable person knows that previous returns are incorrect
The Commission has not yet received any information from the tax authorities.
- The deadline for imposing a levy will be extended if: a return is lodged without the taxable person having been invited to do so; and
In the case of a tax liability which is not due until the end of a tax year, an extension of the deadline for payment of the tax liability may be granted only if: the time limit may be fixed.
- The rules for ex officio reduction of assessments are extended. As a result taxpayers have a greater right to tax refunds.
- A system is introduced whereby the inspector may impose a fine for an infringement in the case of: the final pricing arrangement. This was missing today at the BES islands.
- The rules on chain and borrower’s liability are adjusted; the possibilities for to limit liability may be extended.
- The disclosure requirements for administrators are defined in a number of ways: extended.
- The legal framework for the exchange of tax information between the Member States
The Commission is proposing to align the United Kingdom with the new tax arrangements between the Member States of the European Union.
the Kingdom.
- The legal framework for the exchange of data under the Savings Directive
will expire. The European Savings Directive has not been in force for a number of years.
is applicable.
- The rules on which the tax authorities may derogate from the obligation of professional secrecy
The Commission has also adopted a proposal for a regulation on the application of the principle of equal treatment for men and women.
- In a number of lower-level schemes, rules still referring to the (already existing)
The Council of Tax Appeals was abolished.
- The Taxation Scheme for the Land of the Netherlands is adapted to a recent amendment of the Corporations Tax Act 1969.
Income taxation
- The exemption from income tax on dividends is abolished.
- The rate of the substantial levy is (parallel to the income tax)
Increased from 5% to 10%.
- The rules on the tax-free amount are being adjusted, in particular to ensure that, at the end of a tax year, the taxable person receives the same amount of tax as the taxable person receiving the tax free amount.
The Commission will be able to provide more detailed information on the adoption of the new tax-free amount.
- In the implementing regulation for expatriates, all the transitional provisions which
refer to decisions ever issued under the Netherlands Antilles right.
Wages and salaries
- A system of reversal of claims is introduced to improve the clarity of the
the circumstances in which entitlements to wages are not (yet) covered by the concept of wages.
- The usual remuneration scheme for directors of major shareholders is extended and increased.
In the case of the Netherlands, the Court of First Instance held that the Commission had not infringed the principle of equal treatment.
- One of the retention periods in the DABES is being adjusted to better reflect: Other preserved
