-
Financial administration
An accurate financial administration provides you with the information you need to take the right decisions. The big advantage of a digital financial administration is that it…
-
Financial insight
You want to take the right decisions, based on trustworthy and clear management information. You want to have access to all your financial data, 24/7, in order to…
-
Global compliance partnering
Outsourced compliance services comprises the total financial compliance of your business, in accounting, financial reporting, payroll, legal and various tax…

-
Impact House by Grant Thornton
Building sustainability and social impact. That sounds good. But how do you go about it in the complex world of stakeholders, regulations and frameworks and changing…
-
Business risk services
Minimize risk, maximize predictability, and execution Good insights help you look further ahead and adapt faster. Whether you require outsourced or co-procured…
-
Cyber risk services
What should I be doing first if my data has been kidnapped? Have I taken the right precautions for protecting my data or am I putting too much effort into…
-
Deal advisory
What will the net proceeds be after the sale? How do I optimise the selling price of my business or the price of one of my business activities?
-
Forensic & integrity services
Do you require a fact finding investigation to help assess irregularities? Is it necessary to ascertain facts for litigation purposes?
-
Valuations
Independent and objective valuations tailored for mergers, acquisitions, and legal matters.

-
Auditing of annual accounts
You are answerable to others, such as shareholders and other stakeholders, with regard to your financial affairs. Financial information must therefore be reliable. What is…
-
IFRS services
Financial reporting in accordance with IFRS is a complex matter. Nowadays, an increasing number of international companies are becoming aware of the rules. But how do…
-
ISAE & SOC Reporting
Our ISAE & SOC Reporting services provide independent and objective reports on the design, implementation and operational effectiveness of controls at service…
-
Pre-audit services
Pre-audit services is all about making the company’s entire financial administration ready for checking before the external accountant begins his/her audit of the…
-
SOx law implementation
The SOx legislation dictates that management is structurally accountable for reporting on the internal control relevant to the financial statements.

-
International corporate tax
The Netherlands’ tax regime is highly dynamic. Rules and the administrative courts raise new…
-
VAT advice
VAT is an exceptionally thorny issue, especially in major national and international activities. Filing…
-
Customs
Importing/exporting goods to or from the European Union involves navigating complicated customs…
-
Human Capital Services
Do your employees determine the success and growth of your organisation? And are you in need…
-
Innovation & grants
Anyone who runs their own business sets themselves apart from the rest. Anyone who dares stick their neck…
-
Tax technology
Driven by tax technology, we help you with your (most important) tax risks. Identify and manage your…
-
Transfer pricing
The increased attention for transfer pricing places greater demands on the internal organisation and on…
-
Sustainable tax
In this rapidly changing world, it is increasingly important to consider environmental impact (in…
-
Pillar Two
On 1 January 2024 the European Union will introduce a new tax law named “Pillar Two”. These new…
-
Cryptocurrency and digital assets
In the past decade, the utilization of blockchain and its adoption of a distributed ledger have proven…
-
Streamlined Global Compliance
Large corporations with a presence in multiple jurisdictions face a number of compliance challenges.…
-
Corporate Law
From the general terms and conditions to the legal strategy, these matters need to be watertight. This…
-
Employment Law
What obligations do you have with an employee on sick leave? How do you go about a reorganisation? As an…
-
Sustainable legal
At Grant Thornton, we help companies integrate sustainability into their business operations, with…
-
Maritime sector
How can you continue to be a global leader? The Netherlands depends on innovation. It is our high-quality knowledge which leads the maritime sector to be of…


Background
In order to mitigate the acute compliance burden that arises from the Minimum Tax Act 2024, the OECD has published its ‘safe harbours and penalty relief’ document.
The document includes a transitional safe harbour, a permanent safe harbour and a transitional penalty relief regime.
Furthermore, the OECD is also working on a Qualified Domestic Minimum Top-up Tax (QDMTT) safe harbour that would provide compliance simplifications for MNEs operating in jurisdictions that have adopted a QDMTT (the Netherlands have adopted a QDMTT). The QDMTT allows the Netherlands to tax any Top-up Tax from any Dutch low-taxed entities.
The Dutch government has not yet prepared a (draft) legislative proposal that covers these safe harbour regulations. As such, this Memo focusses only on the OECD framework publishment.
Transitional Safe Harbour
The Transitional CbCR (country-by-country reporting) Safe Harbour is designed to provide transitional relief for MNE Groups in the initial years during which the minimum tax act 2024 comes into effect. The transition period covers all of the fiscal years beginning on or before 31/12/2026 but does not include fiscal years that end after 30/6/2028. If an MNE Group has not applied the Transitional CbCR Safe Harbour with respect to a jurisdiction in a Fiscal Year in which it is subject to the GloBE Rules, the MNE Group cannot qualify for that safe harbour for that jurisdiction in a subsequent year (“once out, always out” approach).
Under the Transitional Safe Harbour, the top-up-tax for a jurisdiction is deemed to be zero during the transition period if one of the following three tests is met in that specific jurisdiction:
De minimis test (transitional period)
The minimis test is met if from the CbC-report follows that the average GloBE Revenue of a jurisdiction is less than EUR 10 million, and the Average GloBE income is less than EUR 1 million or the jurisdiction has an average GloBE loss.
Simplified ETR test (transitional period)
The ETR (effective tax rate) test is met if the MNE Group has a Simplified ETR that is equal to or greater than the Transition Rate in such jurisdiction for the Fiscal Year.
The simplified ETR of a jurisdiction is calculated by dividing the jurisdiction’s simplified covered taxes by the jurisdiction’s profit (loss) before income tax as reported on the MNE’s group financial statement that is used for CbCr-reporting. The jurisdiction’s Simplified Covered Taxes consist of the taxes based on the Qualified Financial Statements, after elimination of Non-Covered Taxes and uncertain tax positions.
The Transition rates are:
- 15% for Fiscal Years beginning in 2023 and 2024;
- 16% for Fiscal Years beginning in 2025, and;
- 17% for Fiscal Years beginning in 2026.
Routine profits test (transitional period)
The routine profits test refers to the substance focused carve-out for calculation of the top-up tax under Pillar 2.
The substance-based income exclusion is calculated as a percentual mark-up based on tangible assets and payroll costs. If the profit (loss) according to the CbCr-reporting is equal or lower than the substance-based income exclusion, it can be assumed that all income is related to the substance and that as a result a top-up tax is unnecessary. As such, when a company with employees and tangible assets is loss-making, the routine profits test is met consequentially.
Would you like to get a better understanding of the impact of Pillar two on your company? And would you like some assistance to take the first step from theory to practice? We can help.
Permanent Safe Harbour
Where an MNE’s operations in a jurisdiction do not meet the requirements of a transitional safe harbour, they may still qualify for the terms of a permanent safe harbour. Naturally, the permanent safe harbour rules are also applicable after the transitional period.
A tested jurisdiction meets permanent safe harbour status when it passes one of the following tests:
Routine profits test
The routine profits test compares a Jurisdiction’s SBIE amount under the GloBE Rules to such jurisdiction’s Profit (Loss) before Income Tax as reported in such MNE’s Qualified CbC Report. If a jurisdiction’s SBIE amount equals or exceeds its Profit (Loss) before Income Tax, it means that it is likely that little (or no) excess profits arise in such jurisdiction, and the Tested Jurisdiction would qualify for the safe harbour.
De minimis test
The average GloBE revenue of such jurisdiction Income as determined under the simplified income calculation is less than EUR 10 million, and the profit (loss) before Income Tax is less than EUR 1 million or the jurisdiction has an Average GloBE Loss.
ETR test
If the effective tax rate of the jurisdiction as determined under the simplified income and tax calculation, is at least 15% as determined in accordance with the GloBE Rules.i
Difference Transitional and Permanent Safe Harbour
The difference between the permanent and transitional period tests is that the permanent test are applied using GloBE rules. These consist of simplified calculations of income revenue and tax calculations. On the contrary, the transitional tests use CbCR and qualified financial statement data. In addition, if an MNE does not qualify for the transitional Safe Harbour in a given year, it cannot be applied anymore in the years after.
Transitional penalty relief
During the transition period, no penalties or sanctions should apply in connection with the filing of a GloBE information return where a tax administration considers that an MNE has taken “reasonable measures” to ensure the correct application of the GloBE Rules. A tax administration may consider that an MNE has taken reasonable measures where the MNE can demonstrate that it has acted in good faith to understand and comply with the relevant domestic application of the GloBE Rules and the qualified domestic minimum top-up tax.
Formal procedure
An MNE that qualifies for the safe harbour rules is still subject to the GloBE Rules and the safe harbour does not discharge the MNE Group from complying with group-wide GloBE requirements. For example, an MNE Group would still need to prepare and file its GloBE Information return, including the information concerning the application of the safe harbour in a jurisdiction where applicable.
Way forward
Of course we can assist you with the obligations arising from the Dutch Minimum Tax Act 2024 and help you with assessing whether the safe harbour rules or transitional penalty relief are applicable. We will keep you informed on any further developments and can help you in the complete process. Please contact us if you have any further questions.
Glossary
CbCr Country-by-Country-reporting
ETR Effective Tax Rate
GloBE Global Anti-Base Erosion
MNE Multinational Enterprise
OECD Organisation for Economic Co-operation and Development
QDMMT Qualified Domestic Minimum Top-up Tax
SBIE Substance Based Income Exclusion