Foreign countries: refund of or exemption from Dutch dividend tax
Dutch companies withhold tax from the dividend they pay to shareholders: dividend tax. The dividend tax rate is 15%.
Do you live or are you established in a country other than the Netherlands and do you hold shares in a Dutch company? If so, you may be exempted from or receive a refund of Dutch dividend tax.
Refund or exemption?
In case of a full or partial exemption, a company will already withhold less or no dividend tax from the dividend to be paid.
If you have not requested an exemption, you may (afterwards) request a refund of any dividend tax paid in excess.
Intercompany dividend or portfolio dividend?
Whether you are entitled to an exemption or refund, and the relevant amount, first of all depends on the number of shares held by you in the Dutch company:
- Do you have a considerable amount of shares in the Dutch company? In that case, it concerns intercompany dividend. Within the EU and the EEA, a minimum percentage of 5% of the shares applies to intercompany dividends. Different percentages apply to other countries, depending on the tax treaty between the Netherlands and the relevant country.
- If you have shares, but no intercompany dividend, it concerns portfolio dividend (investment dividend).
Foreign bodies that are not subject to profits tax
If, as a body, you are established in the EU or Iceland, Norway or Liechtenstein (EEA) or in a 'third country', you may request a refund of all dividend tax withheld (15%) if you meet the following conditions:
- You are established in a country other than the Netherlands.
- You are not subject to profits tax in this country.
- If you would be established in the Netherlands, you would not be subject to corporation tax.
- You do not perform any investment activities.
- You are the beneficial owner of the shares.
Are you established in a country that is not part of the EU or EEA? In that case, you can request a dividend tax refund if, in addition to the above conditions, you meet the following conditions:
- It should concern a portfolio dividend.
- The Netherlands must have made arrangements on the exchange of information with your country of establishment.