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15.01.2018 01:49 Age: 2 days

Netherlands withdraws tax amnesty offer from individuals with undisclosed investment income

The Dutch coalition government has significantly watered down its predecessor's plan for a complete repeal of the voluntary disclosure regime.

Currently, the voluntary disclosure rules allow both corporate and individual taxpayers to rectify incorrect tax returns without incurring civil penalties or criminal exposure, by filing a corrected tax return and paying all tax due within two years of the incorrect filing.

In 2017, the Netherlands government announced plans to abolish this regime. Since then, however, the government has been reshuffled as a new four-party coalition. This government initially retained the aim of ending the amnesty system, but was forced to amend it in December , when pushing its 2018 Tax Bill through the Senate.

At the last moment, the government conceded that the voluntary disclosure regime will continue to exist, but will be withdrawn from individuals who have unreported income from savings and investments.

Consequently, these individuals can no longer obtain guaranteed protection against civil penalties or prosecution by making a voluntary disclosure. However, according to law firm Dentons, voluntary disclosure will still be considered a mitigating circumstance that might result in reduced penalties.

Other measures in the 2018 Tax Bill include an increase in the 'patent box' rate of corporation tax, from 5 per cent to 7 per cent, applicable to income from intangible assets developed within a company; the introduction of country-by-country reporting for groups with revenues above EUR750 million; and an extension of the cross-border dividend withholding tax exemption for parent companies.


Netherlands withdraws tax amnesty offer from individuals with undisclosed investment income