Government Companies to Pay Tax from 2016
THE HAGUE, 23/05/13 - From January 2016, government companies are to pay corporate tax. This is at the insistence of the European Commission.
Finance State Secretary Frans Weekers has sent European Commissioner Almunia and the Upper and Lower House a letter with the cabinet plans. Both Houses do still have to give their judgement on this plan. In a recent debate between Weekers and the Lower House, it still looked as though it would wind up being put on ice.
The legislation needs to be ready from 2015, and then it can come into effect a year later. The tax will be levied on economic activities “that are subject to corporate tax in the same way as private companies.” The public bodies could, for example, be swimming pools, but also Rotterdam Port Authority.
An inventory is already being drawn up to establish a better picture of the various economic activities of public bodies and departments, Weekers writes. This is necessary in order to be able to fill out the details of the tax requirement appropriately. The inventory is expected to be completed this autumn.