Pillar 2 Compliance: The Netherlands

None

The relevant aspects of the submission of a GloBE Information Return (GIR) are included, as provided in the EU Directive.

It provides that every Constituent Entity located in the Netherlands will have an obligation to file a GIR in the Netherlands. However, this obligation can be discharged if the GIR is filed by:

– The Ultimate Parent Entity, or

– The Designated Filing Entity.

Where the GIR is being filed by either the Ultimate Parent Entity or the Designated Filing Entity, the Constituent Entity, must file a notification with the Revenue.

The notification must contain:

– Details of the entity that is filing the GIR, and

– The jurisdiction in which such an entity is located.

Where the GIR is filed by the Designated Local Entity it needs to outline the Constituent Entities that it is filing on behalf of.

Both the GIR and associated notifications must be filed no later than 15 months after the end of the fiscal year (with an 18-month deadline for the Transition Year).

The December 2024 Amending Law includes a new Article 14.5 into the Minimum Tax Act to provide for a transitional simplified reporting election. This applies for accounting periods that begin on or before 31 December 2028 and end before 1 July 2030 where none of the entities in the territory have top-up amounts or additional top-up amounts for the accounting period to which the election is to apply or Top-up Tax arises but it does not need to be allocated on a Constituent Entity by Constituent Entity basis. Where this applies it permits MNE Groups to report GloBE information at a jurisdictional level.

Article 11.1 requires the filing of a top-up tax return. The filing deadline for the top-up tax return is seventeen months after the end of the reporting year. In the commencement year, the top-up tax return filing deadline/payment deadline is 20 months.

The December 2024 Amending Law includes provisions for a short transitional/reporting year that ends before December 31, 2024/March 31, 2025.

Article 5.1 states that if there are a number of group entities subject to the UTPR, the tax shall be due for

(a) – parent entity established in the Netherlands whose interest is not held directly or indirectly by another parent entity established in the Netherlands; or

(b)- if there are several parent entities referred to in subsection a or there is no parent entity established in the Netherlands: a group entity
established in the Netherlands designated for that purpose by the group or the inspector.

Article 3.1 states that if there are a number of group entities from the same MNE group subject to tax under a QDMTT they are to be treated as a single taxpayer. In this case the QDMTT applies to a parent entity established in the Netherlands whose interest is not directly or indirectly held by another group entity established in the Netherlands. If there are multiple parent entities established in the Netherlands or no parent entity established in the Netherlands, the entity that bears the QDMTT is to be determined by the group or Tax Authority.

Article 11.1 of the Minimum Tax Act requires payment of top-up tax by the deadline for filing the top-up tax return