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The Dutch government has announced measures to simplify aspects of the tax regime and the tax administration.

The majority of people will get tax cuts, certain tax procedures will be simplified, and the Dutch tax will be changed to the mode of dividend under the new tax plan, announced by the Ministry of Finance of 20 September, small and medium-sized businesses.

Proposed dividend tax changes aimed at leveling the tax treatment of dividends to the holding of cooperatives, which are frequently used in international structures of the holding company, along with private companies (BVS) and public companies (PNV).

Under existing rules, holding cooperatives, as a rule, are not subject to tax on dividends in the Netherlands, in contrast to the terminal and NVs. The government intends to eliminate this difference, but at the same time to release the distribution of dividend tax in cases where shareholders holding cooperative, the NV or BV, residing in a jurisdiction with a tax treaty with the Netherlands, subject to a minimum of five per cent threshold of holding. These changes are expected to be introduced from 1 January 2018.

With regard to income tax, the ministry said that "the elderly and the young, single and FEB - revenue households, families and individuals, in general, will be improved in 2017."

In addition, the government wants to standardize the repayment arrangements for those who are due tax debt "put an end to a confusing practice of creating different types of payment arrangements with people who owe money to the tax and customs administration."

In a letter to the Dutch Parliament of the name of the Secretary of State for Finance Eric Wiebes he said that the government "intends to provide the remaining Corporate Business Netherlands an attractive location in the future."

"Every tax plan should put forward new proposals to make the system simpler," said Wiebes. "This is necessary. We need to make the system more simple."

However, the Ministry of Finance said that under the plan, the government "will continue to actively tackle tax evasion."

Author: Sergey Panov

managing partner Finance Business Service