Global

Details

  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/23/2012

The Netherlands - Update on bank tax legislation 

July 23:   The Upper House on 10 July 2012 passed a bill on bank tax.  The bill was passed by the Lower House in December 2011.

The bill would request a contribution from the banking sector for recent investments made by the government to stabilize the financial services sector, and is intended to manage risk and to moderate the sector’s remuneration policy. A split tax rate is to be applied for risk management purposes:


  • The bank tax rate for short-term debt is set to be higher than the bank tax rate for long-term debt.
  • As a result of the parliamentary debates, the initially proposed rates of 0.022% and 0.011% have been increased (doubled) to 0.044% and 0.022%.

The bank tax will apply to the unsecured debt-financing of banks—i.e., total liabilities less (1) qualifying capital, and (2) the debts falling under the Dutch deposit guarantee regime. This tax base will then be reduced by an efficiency exemption of €20 billion.


The legislation’s effective date will be determined by Royal Decree. The anticipated effective date is 1 October 2012, and the bill’s provisions would apply to tax liabilities arising on or after that date.


Read a July 2012 report prepared by the KPMG member firm in the Netherlands: Bill on bank tax passed by Upper House




©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to go-fmtaxnewsflash@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now

Contact us