The Netherlands legislative proposal to transpose Pillar Two into the Dutch company tax system, titled ‘Minimum Tax Act 2024 (Pillar Two),’ was submitted to the Dutch Parliament on 31 May. The Netherlands is the first country within the European Union to release its domestic Pillar Two legislation. By doing so, the Netherlands takes the next step in implementing Pillar Two, effective 31 December 2023. The proposal aims to implement EU Directive 2022/2523, published by the European Commission on 14 December 2022. The proposal generally aligns with the Directive.
The Dutch Parliament and the Upper House will discuss the legislative proposal in the coming months. The legislative bill is expected to enter into force on 31 December 2023. The Pillar Two rules will apply to accounting years beginning on or after this date. The complex Pillar Two legislation impacts the entire (global) business organization of in-scope companies. Therefore, companies should start analyzing the financial and administrative impact of these new rules on their business organization.