Netherlands Plans Withholding Tax on Dividends to Tax Havens (2)

The Dutch government plans to introduce a withholding tax on dividends paid to low-tax jurisdictions starting in 2024.

The tax would be applied on payments to countries with a corporate tax rate of less than 9% and those on a European Union blacklist, the government said in a statement on Friday.

The proposed plan is part of the Netherlands’ effort to shed its reputation as a conduit country, used by multinationals to avoid corporate tax. Starting in 2021, the Netherlands will levy a conditional withholding tax on interest and royalty payments to low-tax jurisdictions.