ARTICLE · 22 DECEMBER 2011

Notional Interest Deduction: Recent Developments

NautaDutilh

Explore more from NautaDutilh

Lauded by some yet criticized by others since its introduction, it comes as no surprise that the notional interest deduction (NID) is one of the first tax breaks to be curtailed at a time when governments are being urged to put their fiscal houses in order.

European UnionTax

Pascal Faes

David Mussche

Brussels to the Point December

Lauded by some yet criticized by others since its introduction, it comes as no surprise that the notional interest deduction (NID) is one of the first tax breaks to be curtailed at a time when governments are being urged to put their fiscal houses in order. This article outlines the most recent developments in this area, focusing on the government's "clarifications" to the NID, the compatibility of the NID with EU law, and the changes proposed by prime minister Elio Di Rupo.

Second addendum to AOIF/AFER¹ circular no. 14/2008

The NID rules, which entered into force in tax year 2007, allow Belgian corporate taxpayers (and foreign corporate taxpayers with a permanent establishment in Belgium) to benefit from a tax deduction corresponding to a percentage of fictitious interest on their adjusted equity.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Developments On Equity Incentives For Employees: Supreme Court Rules On Tax Deduction

Aanvullende kabinetsvoorstellen Belastingplan 2027

Impact Of Post-Closing Actions On Access To Tax Attributes - New York Office Snippet

Dutch Public Country-by-country Reporting: Is Your Group Ready For The First Reports Due In 2026?

Dutch Tax Plan 2027 - Tax Alert

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Tax
- Corporate Tax

Related Comparative Guides

Comparative Guide

Tax Disputes

Comparative Guide

Tax

See more popular content from

Tax

OECD Releases New Pillar Two Guidance, Updated GIR And Framework For Legislative Reviews

The OECD has released new administrative guidance on Pillar Two's Global Anti-Base Erosion (GloBE) Rules, addressing explicitly conditional taxes and QDMTT safe harbour operations. The package includes an updated GloBE Information Return incorporating permanent safe harbours and establishes a peer review framework for assessing whether domestic legislation aligns with international standards.

Corporate Tax Laws and Regulations Netherlands 2026

There are 98 income tax treaties in force in the Netherlands. In addition, the Netherlands has signed several income tax treaties that are expected to enter into force in the future.

Dutch Tax Plan 2027

The Dutch government has released its comprehensive tax plan for 2027, introducing significant changes across corporate income tax, dividend withholding tax, Pillar 2 implementation, employment taxation, and real estate transfer tax. Key measures include modifications to the participation exemption regime for hedging instruments, implementation of the OECD Side-by-Side Safe Harbour package for US-headed multinational groups, and new stock option schemes for startups and scale-ups designed to strengthen the

Aanvullende kabinetsvoorstellen Belastingplan 2027

Het Nederlandse kabinet kondigt ingrijpende fiscale hervormingen aan voor box 3 en box 2, met een versnelde overgang naar een vermogenswinstbelasting vanaf 2028 en aanpassingen aan het heffingsvrij vermogen. Daarnaast worden maatregelen gepresenteerd voor versterking van de koopkracht van werkenden en het terugdraaien van eerder voorgenomen hervormingen in de sociale zekerheid.

2019年中国企业所得税汇算清缴：您需要关注的要点

年度汇算清缴向来是所得税管理的重点和难点，尤其由于疫情原因，国内外企业的正常运营都受到很大影响，更为2019年度汇算带来了新的挑战。

Dutch Tax Plans 2027: a predictable package in a minority government setting

The Dutch government has unveiled its Tax Plans 2027, introducing significant changes for corporate taxpayers including retroactive implementation of the Side-by-Side package and modifications to participation exemption rules for foreign currency hedging. The proposals emphasize innovation through enhanced tax benefits for SMEs and improved treatment of employee share options in start-ups, though their adoption faces uncertainty given the government's lack of parliamentary majority.

Dutch Public Country-by-country Reporting: Is Your Group Ready For The First Reports Due In 2026?

The Netherlands has introduced public country-by-country reporting requirements for large multinational groups with consolidated revenue above EUR 750 million. These new rules will make tax data publicly accessible through the Dutch trade register, allowing journalists, NGOs, investors and competitors to review tax information by jurisdiction. Groups with a calendar financial year must publish their first report by the end of 2026, covering the 2025 financial year.

Budget Day 2026: Real Estate Update

The Dutch government has introduced several tax measures aimed at transforming the residential real estate market, including a reduction in transfer tax rates for investment properties and new subsidies for mid-rent housing development. These proposals seek to address housing shortages by improving investment conditions and facilitating cooperation between housing associations through targeted tax exemptions and enhanced borrowing capacity.

Dutch Supreme Court: Unrealised Losses Fall Within The Loss Restriction Rules Upon A Share Transfer

The Dutch Supreme Court has ruled that unrealised losses fall within the scope of the Loss Restriction Rule, creating new administrative challenges for taxpayers who must now identify, value and monitor such losses at the time of qualifying ownership changes. While the judgment clarifies this principal issue, it leaves several technical questions unresolved, particularly affecting real estate structures, asset-intensive businesses and distressed M&A transactions.

Employees Working From Home And Permanent Establishment

A new Dutch policy decree clarifies when remote working arrangements may create a permanent establishment for foreign employers, following recent amendments to the OECD Model Tax Convention. The guidance establishes a 50% threshold test and introduces case-by-case assessment criteria that could significantly impact cross-border employment taxation and corporate tax liability for businesses with remote workers.