The Dutch parliament approved the introduction of a notional withholding tax (25%) on dividends paid to low-tax jurisdictions on November 2, 2021, sources said. The deemed withholding tax will apply from 1 January 2024 on dividend payments in jurisdictions with a corporate tax rate below 9% and in so-called “non-EU” jurisdictions, which is the same jurisdiction for deemed withholding tax on interest and royalties as applies from 1 January 2021. A bill introducing a deemed withholding tax must now be signed and published in the Official Gazette. Additional information about the law will be published when it becomes available.
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