Legislation to amend Dutch dividend withholding tax act adopted

On Tuesday 19 December, the Dutch Senate adopted the legislation to abolish dividend withholding tax in treaty situations and to amend dividend withholding tax position for cooperatives as from 1 January 2018. For more info on these changes, click here. The new legislation will entry into force on 1 January 2018.

As from 1 January 2018, 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. 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.