Dutch capital duty will be abolished
A capital duty of 0.55% is levied on capital contributions made to Dutch resident corporate entities (e.g. BVs and NVs).
Although the tax knows many exemptions, the existence of this levy is regarded as a disattractive element of the Dutch tax system. Many European countries have abolished this type of taxation during the last decade.
The Netherlands will now follow the example of other countries and will abolish the capital duty as per 1 January 2006. This was announced by the Dutch minister of Finance on 24 March 2005 in a letter to the Dutch parliament.
More details of this proposed change will be included in a memorandum about the future of the corporate income tax. The publication thereof is expected in Spring 2005.
