The Dutch dividend withholding tax Act was amended on 1 January 2018. In short as a result of which:
For a more detailed description of the changes to the Dutch dividend withholding tax Act, take a look at our newsletter of 27 September 2017 here or contact us to discuss.
Important to note is that as a result of the amendments, Dutch entities applying the Domestic DWHT Exemption as withholding agent, have been obligated since 1 January 2018 to file a declaration with the Dutch tax authorities. This new filing requirement can in practice be easily overlooked.
Obligation to file declaration with Dutch tax authorities
As of 1 January 2018, Dutch entities distributing a dividend for which the Domestic DWHT Exemption is applied, are obligated to file a declaration that the requirements for the Domestic DWHT Exemption are met (Declaration Obligation), even in case distributions are made to recipients in the EU/EER. Such declaration should be filed within a month after the dividend was made available. The Dutch tax authorities have created a standard form of declaration that should be completed and filed. Prior to 2018 there was no Declaration Obligation for distributions made under the then available Domestic DWHT Exemption to qualifying shareholders resident in the EU or EER. In practice groups with Dutch group companies within their structure should review the impact of the amendments to the Dutch dividend withholding tax Act and make sure to update internal compliance procedures in case of application of the Dutch DWHT Exemption.