Tax Plan 2021

INTERNATIONAL

Restriction on liquidation losses 
The liquidation loss scheme will be tightened up. This rule is an exception to the participation exemption: losses related to the liquidation of participations can be deducted for CIT purposes.

There will be three new conditions for taking a liquidation or strike loss into account:

• 1. Temporal condition: the loss will be taken into account in the event of liquidation within three years after the year of the (decision to) strike.
• 2. Territorial condition: only losses from the Netherlands, the EU, the EEA and third countries with which the EU has concluded a qualifying association agreement will be taken into account.
• 3. Quantitative condition: only deduction of liquidation loss in case of decision making influence. 

In order to make the scheme enforceable, it has been proposed to apply the limitation in principle only to the extent that the loss exceeds € 5 million.

Transitional rules have been proposed for situations in which the companies of participating interests are liquidated or discontinued before 1 January 2021.

Concurrence ATAD2 and earnings stripping 
On 1 January 2020, hybrid mismatch provisions were introduced under the ATAD2 Directive. In practice, an undesirable overlap is being observed with the earnings stripping measure. The earnings stripping measure is being adjusted in this respect.