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Proposed Changes to Dutch Dividend Tax Act 1965

4 juli 2017

Recently, the Ministry of Finance launched a public internet consultation on a draft bill amending the Dutch Dividend Tax Act 1965 and the Corporate Income Tax Act 1969.
The proposed changes affect company structures that involve a foreign shareholder in a Dutch entity. The new changes should enter into force on January 1, 2018.

We advise you to assess timely the impact on your company’s business structure. These changes might seriously affect your results positively or negatively. Therefore, we have drawn up a Tax News Memorandum for you in which we discuss each element in detail. Click on the button below if you would like to download the Tax News Memorandum.

Download tax news memorandum

Key elements

In general the draft bill includes the following key elements:

  • the introduction of a Dividend Withholding Tax obligation for so-called “Holding Coops”; Under current legislation, Cooperatives fall out of scope provided no abuse is present.
  •  the expansion of the current EU/EEA DWHT exemption to tax treaty situations; If the conditions are met, the Netherlands will unilaterally refrain from levying DWHT. Consequently, LOB-clauses in Treaties will no longer have to be met in order to mitigate Dutch DWHT.
  • a revised anti-abuse test with substance requirements; Introduction of an anti-abuse measure in line with the principal purpose test in Action 6 of the BEPS Project and the GAAR in the EU Parent-Subsidiary Directive and new substance requirements in addition the existing requirements
  • amendment of the scope of Dutch non-resident corporate income taxation on substantial shareholdings.

Want to know more?

Feel free to contact your regular contact at Bol if you wish to assess the specific impact on your company’s business structure. Of course you can also contact the authors Toine Geesink (t.geesink@bolinternational.com) or Kevin Smit (k.smit@bolinternational.com) to find out more about the implications of the proposals.




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