Tax

Dutch Coalition agreement: Corporate Income tax and Withholding Tax on dividends aspects

Niels van den Akker Niels van den Akker

On 10 October 2017 the four parties that will form the new Dutch Cabinet, after the general elections of 15 March 2017, published their coalition agreement. This agreement does not include legislation proposals but the intentions of the parties of their policy for the upcoming four years. In this tax alert some elements of this policy will be highlighted. Please note this coalition agreement is just a statement of intentions and not yet part of any legislative proposals.

Abolishment of Dividend Withholding Tax

One of the most important intention is the abolishment of the dividend withholding tax as per 1 January 2020, except for distributions to low tax jurisdictions and in case of abuse. This intention is in line with the current draft legislation of the dividend tax which should be entered in force per 1 January 2018 which give a full exemption to 5% shareholders in treaty countries provided certain conditions are met. Foreign private investors and institutional invest funds will probably most benefit of this intention as they are currently not allowed for a refund of the withhold dividend tax under a tax treaty.

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Tax alert: New Dutch Coalition agreement ITS Tax alert - Corporate Income tax and Withholding Tax on dividends aspects