New safe harbour rules for the global minimum tax

For whom?

• groups of entities (businesses) with a turnover of €750 million or more

What changes?

Is your business part of a group of entities with a turnover of €750 million or more? If so, you must comply with the Minimum Tax Act 2024 (Pillar Two). This introduces a global minimum tax rate of 15% for large groups of entities. If the effective tax rate in the country where an entity is established is lower, the group must pay a top-up tax.

The Safe Harbour Rules (Minimum Tax Act 2024) proposal adds 4 new safe harbour rules to the Minimum Tax Act 2024. With this, the government incorporates international commitments from an OECD agreement into Dutch tax law.

Simplified effective tax rate safe harbour

The aim of this safe harbour rule is to reduce administrative burdens. A group of entities may choose to use a simplified calculation instead of a detailed calculation when applying the minimum tax in a jurisdiction.

Qualifying equivalent minimum tax regime safe harbour

If the country where the ultimate parent entity (the head of a group of entities) is established already has a form of minimum tax, the Dutch top-up tax for certain profits of that group is reduced to zero.

Ultimate parent entity safe harbour

If both a subsidiary and the ultimate parent entity are established in a country that has a qualifying tax system, the Dutch top-up tax on certain profits of this group is reduced to zero.

Qualifying tax incentive safe harbour

This safe harbour rule provides favourable treatment for certain tax incentive schemes for businesses with significant economic activity.

The proposal also extends the temporary Country-by-Country Reporting (CbCR) safe harbour rule by 1 year. It also includes a technical amendment for groups of entities with a financial year of 52 or 53 weeks.

When?

These amendments to the Minimum Tax Act 2024 will enter into effect on 1 January 2027. They will apply retrospectively from 1 January 2026 or 31 December 2025.