Dutch Parliament Approves Conditional Withholding Tax on Dividends

The Dutch parliament reportedly approved the introduction of a conditional withholding tax (25%) on dividends paid to low tax jurisdictions on 2 November 2021.

The conditional withholding tax will apply from 1 January 2024 on dividend payments to jurisdictions with a corporate tax rate below 9% and jurisdictions listed by the EU as non-cooperative, which is the same scope of jurisdictions for the conditional withholding tax on interest and royalties that applies from 1 January 2021.

The bill introducing the conditional withholding tax must now be signed into law and published in the Official Gazette. Additional details of the law will be published once available.


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