At the beginning of 2024, the Minimum Tax Act will take effect in the Netherlands, which critics say will do us little good. Peter Kavelaars, Professor of Economics of Taxation at Erasmus School of Economics, also raises doubts about the law. He was asked for his expertise in a broadcast by BNR Nieuwsradio.
The law will mainly affect multinationals. If they have income abroad that is taxed below the minimum rate of 15% in the Netherlands, a levy will follow. The law is based on a proposal by the Organisation for Economic Development and Cooperation (OECD) and should try to prevent countries from attracting companies to themselves through a low profit tax.
The burden of proof of the law lies with the companies themselves; they have to declare that they pay a tax less than 15% in another country, after which a levy follows in the Netherlands. Extra work for the tax authorities, thanks to a law that will also raise little to no money. 'It ultimately is a terrible law that does not yield a penny and will mainly cost businesses and the government time and money,' Kavelaars says.
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You can listen to the full episode from BNR Nieuwsradio, 8 November 2023, here.