As tradition dictates, the Dutch government presented its annual budget – including the annual tax plan – on the third Tuesday of September. Tax Plan 2013 is less detailed than previous years’ plans because of proposals already published in May, but includes the abolition of the Dutch thin capitalisation rules, as well as welcome provisions for the real estate market.
With an election looming, Prime Minister Najib Razak is likely to release a taxpayer-friendly budget on Friday, and taxpayers are hopeful that this will include a corporate tax cut.
Last week, the Senate continued its assessment of the tax code and of what form comprehensive tax reform should take, by holding a hearing on offshore profit shifting, as well as a hearing on the tax treatment of capital gains.
A constant issue faced by multinational taxpayers is whether branches or subsidiaries are a more useful and flexible part of the corporate structure and in what circumstances it is appropriate to employ one over the other.
