Holland oil liquidating trust
Figure 1 Under the structure illustrated in Figure 1, dividends distributed by the EU company should be exempt under the EU PSD assuming certain conditions are fulfilled.
Dividends received and future capital gains should be fully exempt from Dutch corporate income tax (CIT).
The current substance requirements, which have already taken effect from January 1, 2016, will be expanded with two further requirements.
Under the amended rules, non-resident shareholders that function as intermediate holding companies must, among other things, have: Examples − how will the proposed rules apply?
The LOB provision and the 12-month holding requirement in the tax treaty between the US and the Netherlands should be no longer relevant, as the dividend withholding tax exemption applies under domestic law.
Expansion of full dividend withholding tax exemption The Dutch government proposes to expand the withholding tax exemption for dividends distributed by Dutch companies where their non-resident shareholder is an entity that: The anti-abuse provision is in line with the general anti-abuse provision in the EU Parent-Subsidiary Directive (EU PSD).
The Dutch government has released an attractive proposal to fully exempt withholding tax on dividends paid to non-resident shareholders in treaty countries provided certain conditions are met.