As we indicated in our earlier mailing, the Cabinet announced the Wet excessief lenen bij de eigen vennootschap (Excessive Borrowing from one’s own Company Act). Based on this Act substantial interestholders must pay Box 2 tax in so far as they borrow more than EUR 500,000 from their own company.
The State Secretary for Finance (Tax and Customs Administration) indicated in a letter to the House of Representatives that the Cabinet intends to postpone the introduction of the Act by one year. The Act will therefore not enter into force until 2023.
The Act will soon be presented to the House of Representatives, after which there will be more clarity about the scope of the Act.
