Dutch progress in AT1 tax campaign

The Dutch Ministry of Finance on 11 June published a proposal for new legislation in Article 29a of the Dutch corporate income tax act to open the market to AT1 bonds from banks.

Under the proposed legislation, interest payments on AT1 instruments will be deductible and not subject to withholding tax. If approved, the legislation will have retroactive effect to 1 January 2014.

The proposal must be voted on by the Dutch Parliament, something that is unlikely to occur before the Senate goes on a two month break starting in mid-July.

Robin van Persie photo: Ryan Pierse/Getty