Key Benefits:
Law of 13 December 1996 amending certain tax laws (revision of significant profits, interest on consumer interest and capital taxes)
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 considered that it would be desirable to review the income tax regime in order to achieve a substantial revision of profits in order to achieve a more balanced treatment of shares and disposals of profits. on shares that are of significant importance and, furthermore, that it is desirable to limit the deductibility of interest on consumer loans for that tax and to a change in the capital tax and any other amendments;
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:
For the calendar years 1997 and 1998, the amounts of f 5 000 and f 10 000 referred to in Article 45 (4) of the Income Tax Act, 1964, shall be the amounts to be in the place after 1 January 1998 after adjustment of the adjustment to the amount of the income tax in respect of the preceding period. at the end of Article 66 B of that law, and raised to the following general rule:
f 10 000 and f 20 000 for the calendar year 1997;
(f) 7500 and f 15 000 for the calendar year 1998.
In respect of the calendar year 1997, Article 12 A of the Law on the Pay Tax 1964 " in Article 71, second paragraph, of the Law on incapacity for the self-employed the maximum amount of the premium to be taken into account ' shall be replaced by: f 78 000.
1 In respect of a body which no longer wishes to be regarded as an investment firm as of the date of entry into force of this Act, remains Article 28 of the Law on Corporate Tax 1969 at the request of the body outside the scope of application and in so far as is included in the taxable amount of the year, the reinvestment reserve and the reinvestment reserve shall be taken into account, as appropriate, Article 10, third paragraph, second sentence, of the Investment Institutions Decision are included in the profit of that year, by derogation to the extent of Article 22 of the Law on Corporate Tax 1969 15 percent.
2 In respect of a body that at the foot of the first member no longer as an investment institution within the meaning of Article 28 of the Law on Corporate Tax 1969 In respect of losses incurred in respect of those losses in respect of the forward netting, the expression and loss incurred at the end of the status period shall be the subject of the provisions of Article 20, third paragraph, of that Act. Requirement that losses incurred in the status period are not recoverable with taxable profits enjoyed outside that period.
1 The provisions Article I, Section L shall continue to apply to the taxable person in respect of shares which constitute a material interest, within the meaning of Article 39 of the Income Tax Act 1964, in respect of shares held by him on 31 December 1996, as in By that date and which shares shall, after the entry into force of this Law pursuant to the provisions of Article 20 A of the Law on Income Tax (1964) no more significant. The corresponding profits are taxed at the level of Article 57 B of the Income Tax Act 1964.
2 It is due to Article I, Part M Article 44c of the Income Tax Act 1964 shall continue to apply in respect of shares which were repurchased after 31 December 1996 and that fulfilled the criteria set out in that Article on that date, provided that those shares do not fall within the scope of a material interest as referred to in Article 20 A of the Income Tax Act 1964.
3 By way of derogation to the extent that the first paragraph of Article 60 of the Law on Income Tax Act 1964 does not exceed a figure of 20% of that loss in respect of a loss of material interest, and to the extent that such loss is the result of a loss of the dissolution of an agreement on which the taxable person has obtained a significant profit before the entry into force of this Act.
4 The provisions which Article IV (A) and (B) , amended, shall continue to apply in respect of tax attacks in the determination of which Article 40 B of the Income Tax Act 1964 or Article 48, fourth paragraph, last sentence, of that Act, as applicable on 31 December 1996, application.
Our Minister of Finance will inform the States-General as soon as possible, but in any event before 1 July 1997 and then before 1 July 1998, and before 1 July 1999, of any additional structural returns of a structural nature, if they are to be considered by the Minister for Finance. dividend tax or income tax arises as a result of the introduction of the modified regime for profit of material interest.
1 This Law shall enter into force from 1 January 1997.
2 With regard to shares and amounts receivable, the consideration of which is less than 70% of the capital paid on the shares in question at the time of acquisition, respectively, the nominal amount of the shares and amounts paid on the shares in question amounts receivable, the changes resulting from Article I, Parts A, C, D, E -with the exception of Article 24 (4) of the Income Tax Act 1964-, G, H, I, K, L, M, P. 1, R, S, V. 2, V. 3, W, X, Y, Z, AA, BB, CC, DD, EE, GG, HH, II and KK, Article III, Part A. 2, C , Article IV , Article VI (B) , and Article XIII, first paragraph and fourth member , from this Law back to 4 June 1996; and the provisions of Article 70 C and Article 70 Ed of the Income Tax Act 1964 as well as the Article XIII, first paragraph and fourth member ) of this Act of 31 December 1996 and 1 January 1997 with regard to these shares and debts, to be replaced by the third and fourth of June 1996 and 4 June 1996.
For the purpose of applying the first sentence in return for the acquisition of shares in the context of the conversion of an amount receivable into equity, the consideration in return for that claim is to be used in the case of the acquisition of a debt; the application of the provisions of Article 70 C The fourth and fifth paragraphs of the Law on Income Tax, 1964 shall apply mutatis mutandis. The first sentence shall not apply to the extent that the shares have been issued to the taxable person at the expense of any reserve or paid up in the company, provided that the shares already held in respect of the shares in possession of the shares are of the company, at the time of the acquisition of such shares, the amount of the capital paid on average of the shares in question is equal to or greater than 70%.
3 Article I, part FF; and Article II , except for part B. 2. and Section C, shall apply for the first time with effect from 1 January 1998.
4 Article V shall be applied for the first time if the death or the second sentence of Article 45, third paragraph, or in the Article 53, first paragraph, of the Succession Act 1956 the event is to take place on or after 1 January 1997. In respect of shares and claims referred to in paragraph 2 of this Article Article V for the first time, if the death or the second sentence of Article 45, third paragraph, or in Article 53, first paragraph, of the Succession Act 1956 the event is to take place on or after 4 June 1996.
Burdens and orders that are in the State Sheet will be placed, and that all ministries, authorities, colleges and officials who so concern will keep their hands on the precise execution.
Given in Gravenhage, 13 December 1996
Beatrix
The Secretary of State for Finance,
W. A. F. G. Vermeend
Published 23rd December 1996The Minister of Justice,
W. Sorgdrager
