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Netherlands To Split Tax Agency

Wednesday, January 15, 2020

On January 11, 2020, Dutch Minister of Finance Wopke Hoekstra informed the House of Representatives about the Government's plans to restructure the tax authorities.

Currently, a single entity, the Tax and Customs Administration (Belastingdienst), is responsible for administering and collecting taxes and social contributions, enforcing customs rules and paying out income-related benefits, largely to families and individuals.

The reforms will see the Belastingdienst split into three offices, separately responsible for taxes, customs, and benefits. Each office will fall under the jurisdiction of the Ministry of Finance and will have a separate director general.

The reforms will also entail the overhaul of the tax authority's information technology systems, which, Hoekstra said in his letter to parliament, have become outdated.

While Hoekstra's letter does not set out a specific timetable for the reforms, he said that some changes can be achieved in the short-term, while others are expected to take a number of years.