Netherlands: the cabinet's written answers on the Belastingplan 2027 confirm that the starters' deduction falls to EUR 10 in 2027, and the Hoge Raad asked the EU Court which country insures a Rhine skipper working for a Luxembourg company. Luxembourg: the CJEU's Neo Group judgment says real substance alone does not secure the dividend exemption, and a Court of Appeal ruling lets the tax collector bankrupt companies over foreign tax debts. Belgium: a new circular sets the rules for the 10% capital gains withholding, while budget talks stalled again.
The week in one paragraph
The Dutch parliament was in recess, so the Dutch news came on paper: the cabinet's answers to the first Tax Plan debate and a Hoge Raad referral to the EU Court. For holding structures the main event was the CJEU's Neo Group judgment, which Luxembourg and Dutch advisers read as a warning that substance does not protect a dividend that sits inside an artificial chain. In Belgium the tax administration published its circular on the capital gains withholding tax, but the federal budget talks hit another wall on 22 October, with a 78-page list of tax and spending measures still on the table.
Netherlands
Tax Plan answers: starters' deduction to EUR 10, merger rule relaxed
What happened. In its written answers to the 12 October committee debate, dated 16 October and summarised on 19 October, the Ministry of Finance confirmed that the regular starters' deduction (startersaftrek) falls from EUR 2,123 to EUR 10 on 1 January 2027 and is abolished in 2028. The presumption that a sale within three years of a tax-free legal merger or demerger is tax-driven will be dropped. Under the earnings-stripping rule, the social housing activities of housing associations are carved out from 1 January 2028; private property investors stay inside the rule. The planned pseudo-final levy on company cars gets exceptions for replacement cars during repairs and short-term temporary use, but no general exception for small employers.
Why it matters. Sole traders who start in 2026 or later lose most of a deduction that most starters relied on in their first years. Groups that restructure by merger or demerger gain room to sell part of the business afterwards without having to rebut a statutory presumption of abuse.
What to do. If you are starting a business, factor the end of the starters' deduction into the sole trader versus B.V. comparison. If a demerger followed by a sale is planned, check the timing against the effective date once the bill is passed. Read our note: Freelancer or B.V. in the Netherlands →
Source: Taxence, 19 Oct 2026
Rhine skipper with a Luxembourg employer: Hoge Raad asks the EU Court
What happened. The Hoge Raad (ECLI:NL:HR:2026:1730) referred questions to the Court of Justice of the EU in the case of a Dutch-resident skipper who in 2015 worked on a Rhine vessel for a Luxembourg company and, for five months, also did non-nautical work for a Bulgarian company on the same ship. The court of appeal had applied the Rhine Boatmen Agreement, which points to Luxembourg as the state where the ship operator is established. The State Secretary argued that the agreement covers only purely Rhine work, so EU Regulation 883/2004 and Dutch insurance would apply. The Hoge Raad leans towards the court of appeal but first asks whether the EU Court may interpret the agreement at all, and which law applies to mixed work.
Why it matters. The answer decides where social security contributions are due for crews of Rhine vessels operated from Luxembourg, a common set-up in inland shipping. Similar disputes are likely to be put on hold until the EU Court rules.
What to do. If you employ crews through a Luxembourg shipping company, keep A1 certificates and evidence of where the operator is established, and record any non-nautical work separately. Read our note: Hiring in Luxembourg or the Netherlands →
Luxembourg
EU: Neo Group, substance alone does not secure the dividend exemption
What happened. In NEO Group (C-203/25), decided on 15 October, the CJEU held that a parent company's genuine economic activity does not in itself prevent a member state from denying the Parent-Subsidiary Directive withholding tax exemption. Indicators of abuse can be found outside the subsidiary's state, and the abusive intention can sit with another group company or the ultimate individual owner. Matching or well-timed financial flows are relevant but cannot on their own create a presumption of abuse. The case concerned dividends from Lithuania to a Cypriot parent whose shares were later sold within the group for EUR 310.4 million, payable in 2027 without security.
Why it matters. Luxembourg and Dutch holdings that rely on the directive's exemption will be looked at across the whole chain, not only at the receiving company. Commentary from Luxembourg (19 October) and the Netherlands (21 October) notes that the Hoge Raad already took the same line in July 2025.
What to do. Map payments that mirror dividends, such as deferred purchase prices or intra-group loans, and document the commercial reason for each restructuring step. A substance file on its own is not enough. Read our note: Dividends to non-residents →
Foreign tax debts can bankrupt a Luxembourg company
What happened. Commentary published on 20 October covers two Court of Appeal decisions (CAL-2025-01047 of 20 January 2026 and CAL-2025-01046 of 6 February 2026) that reversed the district court. Acting under the 2012 law on cross-border tax recovery, the Luxembourg tax collector (Receveur) had sought the bankruptcy of an S.A. over EUR 81,238 owed to the German tax authorities and of an S.à r.l. over EUR 945,175 owed to the French tax authorities. The court held that a foreign EU tax claim is treated as a Luxembourg claim, that recovery includes petitioning for bankruptcy, and declared both companies bankrupt.
Why it matters. A Luxembourg company with unpaid tax in another EU state can no longer argue that the Luxembourg collector is not its creditor. Claims made up largely of penalties and interest, including disputed amounts, did not stop the bankruptcy.
What to do. Treat any foreign tax assessment against a Luxembourg company as a Luxembourg insolvency risk. Challenge or settle it abroad promptly and respond at once to a payment order from the Receveur. Read our note: Luxembourg company in financial difficulty →
Source: BSP via Lexgo, 20 Oct 2026
Next wage indexation: probably not before 2027
What happened. The six-month average consumer price index stood at 1,058.56 points in September, about 0.6% below the 1,064.75 trigger for the next 2.5% wage indexation. Annual inflation rose to 2.9% in September from 2.2% in August. STATEC's August forecast puts the next tranche in the third quarter of 2027 in its central scenario, and in the fourth quarter of 2026 only under a prolonged energy shock. The next checkpoint is STATEC's October index and updated forecast on 4 November.
Why it matters. Each tranche raises all salaries by 2.5%. The end of state energy support on 31 December 2026 is expected to add 0.3 points to 2027 inflation, which could bring the tranche forward.
What to do. Budget 2027 payroll with an indexation scenario on top of the 3.8% minimum wage increase, and update it after 4 November. Read our note: Luxembourg salary calculator →
Source: The Luxembourger, 25 Oct 2026
Belgium
Capital gains tax: circular on the 10% withholding
What happened. The FPS Finance published circular 2026/C/94 on withholding under the new capital gains tax on financial assets. Belgian intermediaries, and Belgian insurers for insurance contracts, withhold 10% on gains realised by resident individuals in the normal management of their private assets. For assets acquired before 2026 the reference value is generally the value at 31 December 2025. Internal gains and gains on substantial shareholdings are outside the withholding. Taxpayers can opt out per account or contract and declare the gain in their return; the opt-out can be revoked once per tax period. Those who asked their intermediary by 31 August to pay an amount for gains realised from 1 January to 31 May 2026 must have it paid by 30 November.
Why it matters. If the intermediary does not know the acquisition value, it may withhold on the full amount received. The EUR 10,000 annual exemption, losses and a higher historical acquisition value are only taken into account in the annual return.
What to do. Give your bank the acquisition values of your positions, decide account by account whether to opt out, and keep the records you need to claim the exemption and losses in the return. Read our note: Belgian personal income tax →
Source: Deloitte Legal via Lexgo, 26 Oct 2026, PwC Belgium, 24 Jul 2026
Budget talks stall again; Vooruit rejects the latest proposal
What happened. Talks resumed on 19 October after a fruitless Sunday session. The core cabinet met until after midnight on 20 October and again on 21 October without agreement, while Bart De Wever answered questions in the Chamber about the delayed 2027 budget. On the evening of 22 October Vooruit rejected the latest proposals. Working groups continue during the parliamentary recess, and senior ministers were not expected to meet again until the week of 26 October.
Why it matters. Parliament can pass the budget on time only with a deal by the end of October. Without one, the government would start 2027 on provisional twelfths and new tax measures would arrive late.
What to do. Keep year-end decisions on dividends, capital reductions and share sales open until the tax chapter is known. Read our note: Benelux tax changes in 2027 →
Source: Brussels Times, 19 Oct 2026, Brussels Times, 21 Oct 2026, Brussels Times, 22 Oct 2026
On the table: targeted VAT rises and EUR 1 billion from the wealthiest
What happened. The 78-page working document behind the talks no longer includes a general VAT rise from 21% to 22%. Targeted increases would instead raise EUR 600 million: firewood, flowers and fertilisers from 6% to 12%, and hotel stays, camping and holiday rentals from 12% to 21%. The wealthiest taxpayers would contribute EUR 1 billion, about half of it from management companies, with possible higher taxes on private foundations and on owners of four or five or more properties. Business subsidies would be cut by EUR 400 million, the largest supplementary pensions would carry higher contributions, and the planned take-home-pay reform could be scaled back by EUR 500 million.
Why it matters. Management companies, private foundations and multi-property owners are named targets. Nothing is agreed, but the direction of travel is clear.
What to do. If you are paid through a management company or hold property through a private foundation, model 2027 under the current rules and under a stricter regime, and avoid irreversible restructuring until the text is published. Read our note: Belgian private foundation →
Source: Brussels Times, 23 Oct 2026
Dates to watch
| Date | Country | What |
|---|---|---|
| 26 October | Netherlands | Tax Plan committee debate resumes with the government's oral answers |
| 28 October | Luxembourg | Plenary vote on the single tax class U (bill 8676) |
| Around 28 October | Netherlands | Council of State advice on the box 3 amending bill |
| End of October | Belgium | Budget deal needed to avoid provisional twelfths in 2027 |
| 1 November | EU | EUR 2 customs handling fee on low-value e-commerce imports starts |
| 1 November | Netherlands | Registration opens for the Wtta transitional scheme for labour hire |
| 2 November | Netherlands | VAT return and payment for Q3 and September 2026 (31 October is a Saturday) |
| 2 November | Netherlands | Box 3 amending bill due in the Tweede Kamer |
| 4 November | Luxembourg | STATEC October index and updated inflation forecast |
| 12 November | Netherlands | Tweede Kamer vote on the Belastingplan 2027 |
| 30 November | Belgium | Payment deadline for the 2026 capital gains transitional option |