On 2 November 2018, the Dutch government published additional explanatory notes regarding the pending legislative proposal to change the Dutch corporate income tax consolidation (fiscal unity) regime, the so-called ‘emergency repair measures’. Based on these measures, several provisions in the Dutch corporate income tax act (“CITA”) and the Dutch dividend withholding tax act must be applied as if the Dutch fiscal unity does not exist (see our Tax Flash of 6 June 2018).

The measures will have retroactive effect to 1 January 2018 (see our Tax Flash of 16 October 2018). This could have a severe impact on the tax position of taxpayers that currently apply the Dutch fiscal unity regime.