New form for dividend withholding tax exemption

Following our newsletter on the extension of the Dutch dividend withholding exemption to all treaty countries (click here), the Dutch State secretary of Finance has now published the declaration that needs to be filed with the Dutch tax authorities when applying the exemption.

A Dutch company distributing dividends to corporate shareholders outside the Netherlands applying the dividend withholding tax exemption must inform the tax administration within a month after the distribution that all requirements to apply the exemption have been met, including the substance test.  A list of exact substance requirements will be published later this year. If this information is not provided in time, a fine of maximum EUR 5,278 can be imposed.

For the declaration form, please click here.

Taxpayers who wish to have certainty in advance that the dividend withholding tax exemption indeed applies can obtain an advance tax ruling. The State secretary of Finance has indicated to encourage taxpayers to discuss in advance whether all requirements are met.

We can assist you determining whether all requirements are met, including the substance test, with the completion of the declaration and with obtaining certainty in advance.