Belgium: the King is holding Bart De Wever's resignation while he consults party leaders, with a decision due on Friday 6 November, and an emergency budget for early 2027 now looks inevitable; new withholding rules apply to pay from 1 November. Netherlands: an Advocate General backs tax on dividends paid to a Cypriot conduit holding, a court accepts a BV's art as a business investment, and the cabinet backs a EUR 3 million EU interest threshold. Luxembourg: companies held through trusts or foundations must register the trust's settlors, trustees, protectors and beneficiaries.
The week in one paragraph
On Monday the Prime Minister offered his government's resignation, the King put it on hold and started consultations on Tuesday, and an emergency budget for January now looks likely. In the Netherlands the week opened with case law: an Advocate General on a Cypriot holding, a ruling on art held by a BV, and a Hoge Raad session on Friday on roll-overs, while the Tax Plan goes to the plenary on 4 and 10 November. In Luxembourg the focus is compliance: beneficial ownership filings for trust-held companies and a new tax credit circular.
Netherlands
Cypriot holding: A-G backs the tax on dividends from a Dutch BV
What happened. In a conclusion dated 16 October and published on 2 November (ECLI:NL:PHR:2026:993), Advocate General Pauwels advised the Hoge Raad to dismiss the appeal of a Cypriot company that received EUR 42.6 million in dividends from its Dutch subsidiary between 2013 and 2017. The inspector taxed the company in the Netherlands under the non-resident substantial-interest rule in article 17(3)(b) of the Corporate Income Tax Act 1969. The Court of Appeal of The Hague upheld the assessments, finding the Cypriot company a conduit without real substance. The A-G calls the structure artificial and sees no need for questions to the EU Court, as the ultimate owners live outside the EU.
Why it matters. The rule taxes a foreign holding on Dutch dividends and gains when it exists mainly to avoid Dutch tax. This is advice, not a judgment, but the Hoge Raad often follows its A-Gs, and the theme echoes the EU Court's Neo Group ruling covered in our week 43 digest.
What to do. If an EU intermediate company sits between owners outside the EU and a Dutch BV, check what it actually does, who decides there and which business reasons you can document, before the next dividend. Read our note: Dividends to non-residents →
Source: Taxence, 2 Nov 2026
Art in a BV: a business investment, and the loss on sale counts
What happened. The Court of Appeal of Arnhem-Leeuwarden ruled on 13 October, in a decision published on 2 November (ECLI:NL:GHARL:2026:6632), that a BV's collection of 82 works of art was a business investment even though the director-shareholder liked the works. In 2017 it sold 43 works to a new subsidiary for EUR 759,700 and booked a loss of EUR 907,145, which the inspector refused. The court found that the inspector had not shown the purchases served private purposes: most works were kept in external storage, the investment motive prevailed and the sale within the group was businesslike despite a tax motive. Taxable profit was reduced to EUR 191,280.
Why it matters. Inspectors often treat collectables, cars or boats in a company as the owner's private assets, blocking deductions. Here the burden of proof sat with the inspector, and storage, valuations and the absence of private use decided the case. An appeal to the Hoge Raad is still possible.
What to do. If your company holds art or other collectables, keep a file with the investment rationale, independent valuations, storage and insurance records, and avoid any private use. Read our note: Yachts, aircraft and classic cars in a company →
Source: Taxence, 2 Nov 2026
EU tax omnibus: The Hague backs a EUR 3 million interest threshold
What happened. In answers to the Tweede Kamer dated 30 October (no. 2026-0000424446), the Ministry of Finance set out the Dutch position on the European Commission's Omnibus for direct taxes. The cabinet supports simpler procedures under the Parent-Subsidiary Directive and the Interest and Royalties Directive, and supports harmonising the interest limitation thresholds at EUR 3 million and 30% of adjusted profit, provided exceptions remain optional. It also wants anti-abuse rules strengthened in the negotiations.
Why it matters. Dutch companies may now deduct net interest only up to the higher of 24.5% of fiscal EBITDA or EUR 1 million, one of the strictest versions of the rule in the EU. A harmonised EUR 3 million and 30% would help leveraged property and acquisition companies most, but this is only a negotiating position.
What to do. Do not plan financing on these figures yet. If interest is capped in your Dutch company today, model the effect of a EUR 3 million threshold so you are ready if the proposal advances. Read our note: Interest limitation in NL and Luxembourg →
Source: Taxence, 2 Nov 2026, ETAF, 2 Nov 2026
Hoge Raad on Friday: can a roll-over request be withdrawn?
What happened. The Hoge Raad's provisional list for Friday 6 November includes two cases (23/04950 and 23/04953) on whether a taxpayer can unilaterally go back on a request for a tax-free roll-over (geruisloze doorschuiving) of a business. They are appeals from the Court of Appeal of 's-Hertogenbosch, with conclusions by A-G Koopman of 28 June 2024.
Why it matters. The roll-over lets a sole trader move a business into a BV without paying income tax on the hidden reserves at that point; the BV takes over the tax book values. Whether the choice can be reversed decides how much room owners have when the numbers turn out differently than expected.
What to do. If you have incorporated a business with a roll-over and an objection or appeal is pending, wait for Friday's judgment before taking further steps. Read our note: Freelancer in the Netherlands: sole trader or BV →
Source: Taxence, 2 Nov 2026
Luxembourg
Trust- or foundation-held companies: register the trust's people in the RBE
What happened. Luxembourg Business Registers circular LBR 26/01 of 19 August 2026 says that where a company is held by a trust or foundation, the beneficial owners to register are those of that trust or foundation: the settlors, trustees, protectors if any, the beneficiaries (or the class of persons in whose interest it operates if they are not yet determined) and any other natural person with ultimate control. It relies on article 1(7) of the AML law of 12 November 2004. In a note dated 20 October, TA Tiberghien pointed out that there is no transitional period and that LBR has been in its enforcement phase since 21 September 2026.
Why it matters. The circular says it has no legal force of its own, but it shows how LBR will read the filings it checks, and a filing that misses people can lead to administrative sanctions.
What to do. Map every Luxembourg company held directly or indirectly through a trust, fiducie or foundation, collect the details of settlors, trustees, protectors and beneficiaries from the trustee now, and update the RBE filings. Read our note: Beneficial ownership registers →
Source: LBR circular 26/01, TA Tiberghien via Mondaq, 20 Oct 2026
Tax credits for employees, self-employed and pensioners: new circular
What happened. The direct tax administration (ACD) has published circular L.I.R. n° 152ter/1, 154quater/2, 154quinquies/2 of 19 October 2026, listed on its 2026 legislation page (updated 30 October). It covers how the tax credits for the self-employed (CII), employees (CIS) and pensioners (CIP), and the matching CO2 tax credits, are granted through the tax assessment or the annual adjustment. It replaces the circular of 12 March 2025 with effect from tax year 2026.
Why it matters. Anyone who changed jobs, combines salary with self-employed income or missed a credit during the year has it settled in the return or the annual adjustment.
What to do. Check your 2026 payslips and pension statements for the credits, and claim any missing amount in the 2026 return. Employers should check the employer-side circular. Read our note: Luxembourg personal income tax →
Source: ACD, Législation 2026, Stibbe, 9 Oct 2026
Belgium
The King holds De Wever's resignation; decision expected Friday
What happened. After an audience of more than an hour on the morning of 2 November, King Philippe took the Prime Minister's resignation into consideration and began consultations with the leaders of the coalition parties on 3 November. The palace said the country cannot afford a protracted political crisis. Bart De Wever is due back at the palace on Friday 6 November, when the King will decide. Economy Minister David Clarinval (MR) said the final proposal discussed on Sunday evening included more than EUR 3 billion in new taxes, which he called far too high.
Why it matters. If the King accepts, elections may follow. The coalition still needs about EUR 10 billion in savings by 2029. None of the tax measures discussed, including those aimed at the wealthiest, has been decided.
What to do. Keep planning on current law. Make no year-end moves based on the failed talks; review after Friday. Read our note: Benelux tax changes in 2027 →
Source: Brussels Times, 2 Nov 2026, Il Sole 24 Ore, 2 Nov 2026
An emergency budget for early 2027 now looks inevitable
What happened. Parliament needs six to eight weeks to pass a budget, so Belgium will probably start 2027 on provisional twelfths: each month the government may spend no more than one twelfth of the previous year's expenditure. The deficit was 5.2% of GDP in 2025, the highest in the eurozone, and debt is set to rise above 110% of GDP this year. Under the EU excessive deficit procedure it must get below 3% by 2029.
Why it matters. Provisional twelfths cap spending; they do not by themselves change tax law, and new tax measures still need a law passed by parliament. The longer the crisis lasts, the later any 2027 tax changes can take effect.
What to do. Base 2027 budgets and payroll on the rules in force today, and allow for possible delays in public payments and subsidies. Read our note: Benelux tax filing deadlines 2026 →
Source: Brussels Times, 3 Nov 2026, Brussels Signal, 2 Nov 2026
Payroll: new withholding tax rules from November
What happened. A royal decree published in the Belgian Official Gazette on 2 October changes the professional withholding tax on pay from 1 November, applying the tax reform voted on 15 July 2026. The tax-free allowance rises from EUR 10,910 (2025) to EUR 11,550, worth about EUR 8 a month net for a single worker. The maximum marital quotient for 2026 falls from EUR 13,790 to EUR 11,780. Some supplements are no longer indexed, so the gain shrinks with two or three children and turns into a small loss from four.
Why it matters. Net pay in November can rise or fall depending on the family situation. Directors paid by their own company are affected too.
What to do. Check November payslips, and use the SPF Finances withholding simulator on Fisconetplus to test director pay and any advance payments still due for 2026. Read our note: Belgian personal income tax →
Source: RTBF, 2 Nov 2026
Dates to watch
| Date | Country | What |
|---|---|---|
| 4 November | Luxembourg | STATEC October index and updated inflation forecast |
| 4 and 10 November | Netherlands | Plenary debate on the Belastingplan 2027 |
| 6 November | Belgium | King Philippe's decision on the Prime Minister's resignation |
| 6 November | Netherlands | Hoge Raad judgments, including on withdrawing a roll-over request |
| 9 November | EU | ECOFIN Council; OECD consultation on intra-group services (transfer pricing) |
| 12 November | Netherlands | Tweede Kamer vote on the Belastingplan 2027 |
| 26 – 27 November | EU | Special European Council on the next EU budget and own resources |
| 30 November | Belgium | Payment deadline for the 2026 capital gains transitional option |
| 30 November | Netherlands | VAT return and payment for October 2026 |
| Mid-December | Luxembourg | Vote on the 2027 budget (bill 8800) |
| Mid-December | Netherlands | Eerste Kamer vote on the Belastingplan 2027 (expected) |
| 31 December | Belgium | Annual company contribution for 2026 (EUR 409.30 or EUR 1,022.38) |
| 31 December | Netherlands | Wtta registration closes; filing deadline for 2025 annual accounts |