It is widely known that the Dutch dividend withholding tax (WHT) legislation has been changed per 1 January 2018. The broadened domestic exemption certainly provides its advantages but also leads to increased administrative duties, i.e. the filing of a Dutch dividend WHT return (information return) per distribution. Taxand Netherlands explains.
As from 1 January 2018 onwards, the domestic exemption may apply when certain conditions are met. A distribution of a Dutch corporate entity to its shareholders/members would accordingly be exempt. Dutch law, however, specifically demands that such an exempt distribution be filed with the Dutch tax authorities in an information return. The information return should be filed per distribution and within 1 month after distribution. Non-compliance with the above obligation could lead to a fine of up to EUR 5.278.
Furthermore, please note that contrary to the requirements before 1 January 2018, distributions to EU shareholders also require that a return is filed. Deemed distributions (for example as a result of transfer pricing corrections) also require that a return is filed.
We advise to keep track on complying with the above obligation. We advise you to check:
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In case assistance in this respect is required, the advisors of Taxand Netherlands are at your disposal.
