NETHERLANDS Trends and Developments Contributed by: Herald Jongen, Radboud Ribbert, Nienke Bernard and Wouter van Wengen, Greenberg Traurig, LLP
Delayed Implementation of the Network and Information Security (NIS2) Directive The deadline for implementing the NIS2 Direc - tive was 17 October 2024. The NIS2 Directive is aimed at safeguarding and improving the digital resilience of EU member states, mitigating the consequences of cyber-incidents and, in doing so, preventing social disruption. Legislation is currently pending after public consultation and is expected to come into effect no earlier than Q3 2025.
In 2024, the Dutch government explored options to convert the patent box into a qualified refund - able tax credit (QRTC). QRTCs reduce the effec - tive tax rate for global minimum tax purposes less significantly and could therefore mitigate the top-up tax under a global minimum tax. How - ever, the government concluded that the innova - tion box could not qualify as a QRTC. However, the Netherlands anticipates the impact on com - panies applying the innovation box to be limited because many Dutch companies applying the innovation box also engage in high-taxed activi - ties, which often results in companies meeting the 15% effective tax rate threshold in the Neth - erlands. Companies in the TMT sector are still expected to benefit from the innovation box, as it complements their overall tax strategy, espe - cially when mixing R&D-related profit generating activities with other activities in the Netherlands.
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