Dividend Withholding Tax in the Netherlands

Dividend Withholding Tax in the Netherlands

The Netherlands levies dividend withholding tax. The Dutch dividend withholding tax rate is 15%. The rate applies to both domestic and cross border dividend distributions.

Dutch dividend withholding tax recovery

How to get a refund from Dutch dividend tax?

Dutch dividend withholding tax refund requests can be based on double tax treaties or, for certain foreign tax exempt entities, based on article 10 of the Dutch dividend withholding tax act. Article 10 of the Dutch dividend withholding tax act provides for full refund of Dutch dividend withholding tax on portfolio dividends to tax exempt foreign investors that are objectively comparable with Dutch tax exempt investors that are eligible for full refund of Dutch dividend withholding tax (for example, pension funds).

A Dutch dividend withholding tax refund can be applied for after online registration via the website of the Dutch tax administration.

Large authorized intermediaries (like Taxology) can file Dutch dividend withholding tax refund requests in bulk and electronically via an XML schema.  

Refund requests must generally be filed within three years from the end of the year in which the dividend withholding tax was paid (statute of limitations). When refund requests are based on double tax treaties that do not specify a statute of limitations, such requests can be filed up to five years after the end of the year in which the dividend withholding tax was paid.

All refund requests must be accompanied by dividend tax vouchers from the withholding/paying agent. Normally dividend tax vouchers are issued by (sub)custodians.

Exemptions from dividend withholding tax

How to get an exemption from Dutch dividend tax?

The Dutch dividend withholding tax act provides for exemption (at source) from Dutch dividend withholding tax in certain specific situations. However, these exemptions are all typically aimed at substantial or active investment, as opposed to passive or “portfolio” investment. Protocol focuses on dividend withholding tax recovery in relation to portfolio investment, not on substantial or active investment.

Learn more about what dividend tax withholding is or about dividend tax withholding in other countries.

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