Withholding Tax

In the Netherlands dividend withholding tax is required to be withheld by the entity making a distribution to its shareholders. Under circumstances (application of the Dutch participation exemption) the applicable tax rate may be lowered to 0%. For specific questions we would recommend to consult your Dutch tax advisor. For any shareholders’ distribution, a dividend withholding tax return needs to be prepared and filed with the Dutch tax authorities and applicable taxed should be paid on time. Freeland offers assistance with the preparation of such tax return. Failing to comply (in time) with tax (return) obligations could result in a penalty.