In a recent interview with BNR Nieuwsradio, Peter Kavelaars, Professor of Economics of Taxation at Erasmus School of Economics, addresses the news that a bill on a minimum tax for large companies has been offered to the House of Representatives.
Multinationals or domestic companies making more than 750 million in turnover per year will have to start paying a minimum tax on profits under the Minimum Tax Act 2024. Companies would have to start paying about 15 per cent tax on their profits. According to Kavelaars, this means that if there is less than 15 per cent at one of the companies abroad, for example, the Netherlands will levy up to that 15 per cent.
Still, implementing this system could be challenging. 'Whether the tax authorities have sufficient capacity for this, I have a hard head in my opinion,' the Professor argues. Not only the tax authorities, but also tax advisers and accountants will have considerably more work to do with this proposal. After all, it will have to be determined for each partner whether they will reach the 15 per cent.
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You can listen to the full episode from BNR Nieuwsradio, 1 June 2023, here.
