The Dutch government has recently submitted an anti-tax-avoidance bill that would introduce a withholding tax on dividends paid to companies in low-tax jurisdictions.

The tax would go into effect January 1, 2024. The additional withholding tax would further the Dutch governments objective of curbing tax avoidance. Under the proposal, the tax would apply to dividends paid to companies in countries with a corporate tax rate below 9 percent, including the 12 countries on the EU blacklist, regardless of whether they have a tax treaty tax agreement in force with the Netherlands. The withholding tax proposal is part of the Netherlands’ bid to shed its reputation as a tax haven.

For more information on the proposed amendments contact Ceriel Coppus.