Withholding tax on dividend, interest and royalties

24 September 2020
Article

In 2021, a conditional withholding tax on interest or royalty payments will be introduced.

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Written by:
Vincent Wanningen Senior tax advisor
Withholding tax on dividend, interest and royalties

Implementation of conditional withholding tax on interest and royalties

The Withholding tax Act 2021 will take effect on 1 January 2021, as previously announced. As of 1 January 2021, withholding tax applies to interest or royalty payments paid by entities resident in the Netherlands, to an ‘affiliated entity which resident in a low-tax jurisdiction or in a jurisdiction considered as non- cooperative according the EU. The scheme also applies in cases of abuse.

Implementation of withholding tax on dividend

In addition to the implementation of withholding tax on interest and royalties, the government is planning to implement a withholding tax on dividend streams to low-tax jurisdictions as of 1 January 2024. More information about the withholding tax on dividend, interest and royalties can be found here.  

Like to know more?

Would you like more information on the withholding tax on interest and royalties, as well as dividends? Please contact Vincent Wanningen on telephone number +31(0)13-4647209 or send Vincent an e-mail.

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