Netherlands launches online consultation on draft bill for the proposed Minimum Tax Rate Act 2024

An online consultation has been launched today on a draft bill for the proposed Minimum Tax Rate Act 2024. The minimum corporation tax rate of 15% for companies will help to make the tax system fairer and prevent tax avoidance. In October 2021, 137 countries reached agreement on a minimum rate. The Netherlands is launching this technical consultation so that the Act can be introduced quickly once agreement has been reached at European level. Comments on the draft bill can be submitted via until 5 December.

In 2021 the members of the Inclusive Framework established by the Organisation for Economic Cooperation and Development (OECD) reached a political agreement on reforms to the international tax system.

The minimum corporation tax rate was one of the measures agreed. This measure will ensure that multinationals are always subject to a corporation tax rate of at least 15%, preventing them from shifting profits to low-tax jurisdictions in order to minimise the tax that they pay.

At the end of 2021 the European Commission published the first draft of a proposed directive setting out model rules for EU member states. In June 2022 all member states but one voted in favour of the proposed directive.

Although the Dutch bill is a draft and still subject to changes, the Netherlands is launching the consultation now in order to invite input that could potentially improve the quality of the definitive legislation. This will enable the Act to be introduced quickly in the Netherlands once agreement has been reached within the European Union.

For more background, please see attached the document 'Foreword – Pillar 2'.