As per January 1, 2018 Dutch resident entities declaring a dividend to foreign companies should complete and file a confirmatory notification form with the Dutch tax authorities in case no Dutch dividend withholding tax is due because of an exemption. This notification is new and was not applicable before 2018. Not filing this notification within one month after declaring the dividend could lead to fines!

Background and history

On December 21, 2017 the Dutch Senate approved certain changes in the Dutch dividend withholding tax act. Cooperatives were brought in line with Dutch private companies (BV's) and public companies (NV's). Furthermore, the Dutch dividend withholding tax exemption was expanded to qualifying recipients in most tax treaty countries. We have included a high level overview in the appendix of the conditions that need to be fulfilled to apply for the Dutch dividend withholding tax exemption.
One area that has been underexposed is the new compliance obligation for declared dividends.

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