The Dutch corporate tax system is to undergo a major shake-up, tax minister Jan Kees de Jager announced on Tuesday.

In particular De Jager plans to tackle the ‘excessive’ tax deductions payable over interest which private equity firms take advantage of when buying up Dutch firms, the Telegraaf reports.
The €2bn proceeds which the reforms will generate will be used to reduce the tax pressure on companies – currently 25.5% – still further. ‘This means an enormous boost for the Netherlands as a corporate location,’ De Jager is quoted as saying.
Ministers and MPs have been concerned for some time about the way private equity firms have been able to buy up Dutch companies, saddle them with debts and benefit from generous tax rebates.
De Jager hopes the reforms will come into effect in 2010.