The Netherlands is moving faster than the European Union by putting draft legislation which will bring in minimum corporation tax rates for multinationals out to consultation, before the EU has reached definitive agreement on the plan.

Last year, 137 countries reached agreement under the auspices of the OECD on bringing in a minimum tax rate. The aim of the legislation is to discourage companies from shifting profits to low tax countries and to prevent a race to the bottom in terms of corporate taxes.

The UK has already published its proposals but the Netherlands is the first EU country to do so.

‘This is clearly a different approach to in the past, when the Netherlands dragged its heels,’ Stephen Brunner, a partner at tax consultance Deloitte, told the Financieele Dagblad. ‘The Netherlands is now going full steam ahead. They probably think that the minimum tax rate is unavoidable so it is better to be in the advance guard.’

The draft legislation foresees the introduction of new regulations in 2024 which will ensure companies with global sales of at least €750,000 will pay an effective rate of 15% where ever they are.

The Netherlands, Germany, France, Italy and Spain said in September that they would press ahead with the plans. Between them, they cover 70% of European multinationals, Brunner said.

The Dutch internet consultation runs until December 5.