Thursday 25 February 2021

Cabinet drops dividend tax plan, €1.9bn saved to go to industry

Photo: Joep Poulssen

The cabinet has dropped its controversial plan to scrap the tax on dividends which would mostly benefit foreign multinationals, prime minister Mark Rutte told reporters on Monday afternoon.

Speaking after a meeting between the four coalition parties, Rutte said the €1.9bn which would be ‘saved’ due to the decision would go to companies. More will become public later on Monday when tax minister Menno Snel briefs MPs, he said.

‘The new package will score better in terms of support,’ Rutte said.

The prime minister did not mention the 30% ruling tax break for certain categories of international workers which is also being looked at again. Campaigners are hoping that ministers will agree to a transition period for current claimants.

However, sources in The Hague told RTL that three proposals are on the table where the money could be spent. These include a further cut in corporation taxes and maintenance of the 30% ruling.

Calls by opposition parties to spend the money on healthcare and education were not possible, Rutte said. All companies, including small firms, will benefit from the change of heart, the prime minister said.

Thank you for donating to

The team would like to thank all the generous readers who have made a donation in recent weeks. Your financial support has helped us to expand our coverage of the coronavirus crisis into the evenings and weekends and make sure you are kept up to date with the latest developments. has been free for 14 years, but without the financial backing of our readers, we would not be able to provide you with fair and accurate news and features about all things Dutch. Your contributions make this possible.

If you have not yet made a donation, but would like to, you can do so via Ideal, credit card or Paypal.