The global minimum tax applies to groups with revenue of at least €750 million. If their effective rate in a country is below 15%, one of three top-up taxes makes up the difference: a qualified domestic top-up tax, the income inclusion rule or the undertaxed profits rule. In the Netherlands, these rules are in the Minimum Tax Act 2024.
On 5 January 2026, the OECD Inclusive Framework agreed the Side-by-Side package. A week later, the European Commission confirmed that it can be applied under the EU's minimum tax directive (C/2026/253).
The Netherlands is taking the package over in full. The bill was submitted on 15 September 2026 as part of the Tax Plan 2027 package (parliamentary file 37025). The plenary debate in the House of Representatives is scheduled for 4 November 2026, so the text can still change.
Four new safe harbours
All four are elective: the group's filing entity has to choose them.
Side-by-Side. If the ultimate parent sits in a country with a recognised equivalent minimum tax system, the income inclusion rule and the undertaxed profits rule produce no top-up tax. When the package was agreed, the United States was the only recognised system. Other countries can still ask for an assessment in 2027 or 2028. The OECD keeps the list in its Central Record.
A qualified domestic top-up tax is not affected. A US group can therefore still pay top-up tax in the countries where it operates, if they levy one.
Ultimate parent entity. The undertaxed profits rule produces no top-up tax on low-taxed entities in the parent's own country, if that country had a qualifying domestic tax system in force on 1 January 2026. Entities in third countries are not covered.
Substance-based tax incentives. Certain incentives are treated more favourably in the rate calculation. They must be tied to spending in the country or to tangible goods produced there. The benefit is capped per country, at either 5.5% of the higher of payroll costs or depreciation of tangible assets, or 1% of the carrying value of tangible assets.
According to the explanatory memorandum, the Dutch investment deductions EIA, MIA and KIA meet the conditions. The innovation box does not.
Simplified effective tax rate. The group calculates its rate from its financial accounts with a limited number of adjustments. If the result is at least 15%, or there is a simplified loss, there is no top-up tax and no need for the full calculation.
The transitional country-by-country safe harbour runs longer
This existing safe harbour is extended by a year. It would cover financial years starting on or before 31 December 2027 and ending before 1 July 2029. For 2026 and 2027, the test is an effective rate of at least 17%.
From when
The bill would take effect on 1 January 2027, but with retroactive effect:
- The Side-by-Side, ultimate parent and incentive safe harbours would apply to financial years starting on or after 1 January 2026.
- The simplified rate would apply to financial years starting on or after 31 December 2025.
For the 2026 financial year, the simplified rate is limited to three situations. A qualified domestic top-up tax safe harbour applies in the country, at most one jurisdiction can levy top-up tax on that country, or all jurisdictions that can levy it allow the simplified rate and the group chooses it everywhere.
What groups should look at
- US-parented groups with Dutch entities: check whether the Side-by-Side choice takes away a Dutch income inclusion or undertaxed profits charge, and what domestic top-up tax remains.
- All groups in scope: compare the simplified rate with the country-by-country safe harbour for each country, per year.
- Groups using EIA, MIA or KIA: test whether the cap covers the benefit.
- Everyone: treat this as a proposal until it is passed. The Inclusive Framework has also agreed a review of the package, to be completed in 2029.
mr. J. el Khalfioui LL.M.