As per 1 January 2018, the widening of the dividend withholding tax exemption, including specific anti-abuse provisions have become effective.
Below, we provide you with the main features of the widened dividend withholding tax exemption
The withholding tax exemption is now also applicable in situations in the case where the parent companies is tax resident in a third country (and not limited to parent companies resident in the EU or EER) that has concluded a tax treaty with the Netherlands that contains “qualifying provisions” relating to dividend withholding tax.
This widening of the dividend withholding tax exemption related to third countries is not unlimited since the applicable tax treaty should have a provision relating to dividend withholding tax. The anti-abuse provision as mentioned in the treaty, which could disqualify the dividend withholding tax, will be applicable as usual.
Please note that a full removal of the dividend withholding tax in the Netherlands is a matter of continuing debate in Dutch Parliament. If law proposals regarding this matter will be drafted we will inform you accordingly.
Should you need any further information regarding this matter or otherwise, please contact Fariq Ishaak at 0031 6 21486808 or fariq@columbusadvisory.com