Close
An analysis by Borgen Tax
The Dutch Ministry of Finance has recently identified some key challenges in the implementation of new entity classification rules affecting Dutch and comparable foreign structures under the revised Fonds voor Gemene Rekening (FGR) regime. Concerns include the reclassification of partnerships, complex reliance on financial regulatory definitions, and differing interpretations of “passive” investment activity – raising risks of tax mismatches and legal uncertainty.
In response, the Ministry is considering a risk-based approach to partnership classification, possible revisions to Wft-based definitions, and maintaining a stricter fiscal interpretation of passive investments. A draft legislative proposal is expected for public consultation in autumn 2025, with the earliest enactment date set for 1 January 2027. Fund managers, family offices, and cross-border investors are advised to monitor the consultation closely.
Experts from our Dutch member firm Borgen Tax have provided a more detailed analysis of the reform, which can be read in full here.
For similar content to our Global Guide, subscribe to our mailing list and keep up to date.