In a news report dated June 28, 2017 the Ministry of Finance announced that the European Code of Conduct Group had approved the Dutch Innovation Box. The approval relates to the version of the Innovation Box that (for the most part) was introduced as of January 1, 2017, which was included in the 2017 Tax Plan. This means that the European Union will not contest this new Box legislation on the ground that the Netherlands was applying harmful tax competition. The European Code of Conduct Group’s decision does not cover State aid aspects of the Dutch legislation on the Innovation Box or its implementation.

The approval of the Innovation Box also means that as of January 1, 2017 biological plant protection products will fall under the Innovation Box. Consequently, a coverage measure will also take effect, whereby the percentage of the energy investment allowance (EIA) in Section 3.42 of the Personal Income Tax Act 2001 will be reduced by 2.5 percentage points to 55%.

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