Dutch Budget Offers Fix for Global Minimum Tax Shortfalls

The Dutch tax plan presented to Parliament on Tuesday highlighted ways to make up for uncertain tax revenues from the global minimum tax to start in 2024.

Marnix Van Rij, the country’s state secretary of finance, aims to address potential tax revenue pitfalls under the global minimum tax by reducing the small and medium sized enterprise profit exemption from 14% to 12.7% and increasing excise duties on cigarettes and rolling tobacco. The SME profit exemption reduces the tax liability for businesses including startups, according to the agency on Tuesday.

The global tax deal agreed to by over ...