Refund Dividend taxes for non-resident shareholders

19 April 2017

On 25 April 2016 the Dutch tax authorities released a Decree that is important for non-resident shareholders of equity interests that are smaller than 5% of the total capital. The Decree is also relevant for so called “non-qualifying” non-resident taxable persons.

Portretfoto van Jeroen Geers
Written by:
Jeroen Geers Director ABAB International
Opgestapelde munten

Non-resident shareholders in the Netherlands; possible refund of dividend taxes

Based on the Decree of the Dutch tax authorities it is possible that some shareholders are entitled to a refund of Dutch dividend taxes. The Decree states that a non-resident individual who owns less than 5% of the share capital of a company has to be compared to a Dutch resident shareholder who would own the same share capital as the non-resident. If the taxes the non-resident shareholder is paying are higher than the resident shareholder, the Dutch tax authorities will refund the difference. The Decree is also relevant for non-resident companies, not just for individuals. The deadline for requesting the refund is set on five years after the year the shareholder received the dividend in cases of individual shareholders (natural persons) and three years for companies.

Non-qualifying non-resident taxable persons

If you live in another country than the Netherlands and your Dutch source income amounts to less than 90% of your total income, you are a “non-qualifying” non-resident taxable person. Up until the Decree this type of taxable person would not be entitled to the “tax free capital” of € 25.000 that resident individuals (natural persons). After this Decree the tax free capital also applies to non-resident individuals.

If you are resided outside of the Netherlands or your company is resided outside of the Netherlands and you own share capital in a Dutch company that distributed profits to you or your company, please don’t hesitate to contact us.

Want more information about this subject? Our specialist will gladly assist you!

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Portretfoto van Jeroen Geers
Director ABAB International