Netherlands Plans to Scrap Private Equity Manager Tax Regime

The Dutch government on Tuesday moved to amend a scheme allowing private equity managers to pay a reduced tax rate of 24.5% on carried interest.

In its budget announcement, the government said it will amend the so-called Lucrative Interest regime to “ensure that private equity managers pay sufficient tax.” If approved, the new scheme would raise the tax rate to 36%.

Currently, private equity managers can elect for a 31% taxation rate, with a further reduced rate of 24.5% for their first €67,804 ($80,338) in income.

• The announcement follows a government report in February that acknowledged a 2024 ...