Key Benefits:
Act of 30 November 2006 amending tax laws to implement the objective of the 'Working on profits' note (Act on profits)
We Beatrix, at the grace of God, Queen of the Netherlands, Princess of Orange-Nassau, etc. etc. etc.
All of them, who will see or hear these, saluut! do know:
In this regard, we have considered that in the context of the business environment in the Netherlands it is desirable to amend fiscal legislation to meet the objectives of the note "Working on profits; to a low rate and a broad basis". (Chamber Pieces II 2004-2005, 30 107, nr. 2), to be achieved;
In this way, we, the Council of State, and with the mean consultations of the States-General, have been well-regarded and understood to be right and to be understood by the following:
1 The changes resulting from this Act in the term of the forward loss account in the Income Tax Act 2001 apply with regard to losses that are settled on income enjoyed after 31 December 2006.
2 By way of derogation from the first paragraph, business losses may be taken forward in the calendar year 2002 or before that date until the calendar year 2011.
3 By way of derogation from the first paragraph, losses may be taken from significant importance in the calendar year 2002, or further forward, until the end of the calendar year 2011.
4 By way of derogation from the first paragraph, a tax reduction for loss from material interest incurred in the calendar year 2002 or earlier, until the calendar year 2011, may be deducted from the tax on taxable income from work and home.
5 The changes under this Act in the term of the forward loss account in the Law of corporation tax 1969 find application for losses which are offset against taxable profits, Dutch or other income received in financial years beginning 31 December 2006.
6 By way of derogation from the fifth paragraph, losses may be incurred during the year 2002 or before that date shall be offset to and including financial years beginning in the calendar year 2011.
Art. 9, 1st paragraph, part h, and 3rd member, of the Law on Corporate Tax 1969 and the provisions based thereon, such as: that Article and those provisions in the midst of 31 December 2006, shall continue to apply until 31 December 2009 in respect of rights granted to personnel prior to 24 May 2006 in order to acquire shares or profit certificates and thereby equivalent rights.
The change resulting from Article II, part J , from Article 10d (seventh paragraph) of the Law on Corporate Tax 1969 does not apply to debts arising from an agreement similar to a money loan agreement, entered into before 1 January 2007.
The interest rate, referred to in the Articles 14a, eighth paragraph , 14b, sixth Member , and 15ad, first paragraph, of the Law on Corporate Tax 1969 As in the case of those members, on 31 December 2006, at the beginning of the first financial year starting on or after 1 January 2007, the profits have not yet been deducted from the taxable amount of that year and, if not yet, the taxable amount of that year. settled, with the taxable amount of a subsequent year.
(1) Where the taxable person has an interest which is not a participation but on which until 31 December 2006, the exemption from Article 13 of the Law on Corporate Tax 1969 , as that Article It applied, however, because that property was Article 13, third paragraph, final sentence The participation of an investee shall, until 1 January 2010, be regarded as equivalent to a holding referred to in Article 1 (1) of that Regulation. Article 13, second paragraph, of the Law on Corporate Tax 1969 like that Article shall read as from 1 January 2007.
2 The first paragraph shall apply mutatis mutandis to the importance of a limited partnership in an open limited partnership to which, until 31 December 2006, the participation exemption is to be granted in respect of the Article 13 of the Law on Corporate Tax 1969 like that Article then ushered, provided that the taxable person applied for the corresponding application by 1 April 2007.
The rate of corporation tax for a financial year starting before 1 January 2007 and ending on or after that date shall be by way of derogation in so far as Article 22 of the Law on Corporate Tax 1969 , calculated according to the formula:
load = (X/B x To) + (Y/B x Tn), where:
X proposes the number of days covered by 1 January 2007 for the financial year,
Y proposes: the number of days covered by 31 December 2006 from the financial year,
B proposes: the total number of days of the financial year;
To propose: the tax due on the taxable amount or the taxable amount of the Netherlands on the basis of the rate of corporation tax, as at 31 December 2006;
Tn proposes that the tax payable on the taxable amount or the taxable amount of the Netherlands on the basis of the rate of corporation tax, as applicable from 1 January 2007, is applicable.
Article 12b of the Law on Corporate Tax 1969 shall apply only to intangible assets in so far as they are due to belong to the taxable person's own resources after 31 December 2006.
Our Minister of Finance shall send to the States General in the year 2010 a report on effectiveness and effects in the practice of Article 12b of the Law on Corporate Tax 1969 .
Where a decision has been adopted in respect of a taxable person before the entry into force of this Act, Article 14, second paragraph , Article 14a, third paragraph , or Article 14b (third paragraph) of the Law on Corporate Tax 1969 , as those articles were published on 31 December 2006, the conditions laid down in that Decision, in so far as they relate to the statutory deadlines for loss netting, are deemed to be replaced by the statutory deadlines for the application of the provisions of the Treaty. loss account as they apply after the entry into force of this Act.
1 This Law shall enter into force with effect from 1 January 2007.
2 By way of derogation from the first paragraph Article IV in force with effect from 31 December 2006.
3 Changes in relation to corporation tax, except Article II, Part M , to the extent that it relates to the Articles 12b and 12c of the Law on Corporate Tax 1969 , apply for the first time in respect of financial years beginning on or after 1 January 2007.
4 By way of derogation from the first paragraph Article II, Part M , as far as this relates to the insert Article 12b of the Law on Corporate Tax 1969 , in force at a time to be determined by royal decree, which may have retroactive effect and shall apply for the first time in respect of financial years beginning on or after that time of entry into force.
5 [ Red: Expated.]
6 By way of derogation from the first paragraph Article I, Parts Da and Ea , in force at a time to be determined by royal decree, where that date may be retroactive.
7 The changes resulting from Article III find application on the yield of the in Article 1 of the Dividend Tax Act 1965 the shares, the profits and the remitts referred to, which were made available on or after 1 January 2007.
This law is cited as: Law works on profits.
Burdens and orders that it will be placed in the Official Gazette, and that all ministries, authorities, colleges and officials who so concern will keep their hands on the precise execution.
Given at The Hague, 30 November 2006
Beatrix
The Minister of Finance
,G. Zalm
Published the 12th of December 2006The Minister of Justice
E. M. H. Hirsch Ballin
