The Netherlands publishes draft legislation on reverse hybrid entities as final part of ATAD II implementation

Executive summary

On 21 September 2021, the Netherlands has published draft legislation to implement specific reverse hybrid entity provisions as mandated by the European Union (EU) Anti-Tax Avoidance Directive II (ATAD II). These provisions counteract hybrid mismatches resulting from reverse hybrid entities, i.e., entities that are considered transparent from a Dutch tax perspective and if at least 50% of the voting rights, capital interests or profit rights in the entity are directly or indirec…