21 September 2016 – As part of the 2017 budget, Dutch government released proposed legislation for the innovation box regime. The regime, a 5% effective CIT rate on income derived from certain intangible assets, will remain applicable for the majority of the taxpayers and will remain very interesting. However the conditions to have access to the regime are stricter for certain taxpayers and income is limited for outsourced R&D to group companies. The background of this proposal is to align the Dutch innovation box regime with international standards based on the OECD’s project “base erosion and profit shifting” (BEPS) Action 5. The Dutch government is determined to maintain the attractive features of the Dutch innovative climate within this new context.