This is contribution number 12 by KPMG Meijburg & Co regarding the implementation of the EU Parent-Subsidiary Directive.
The Netherlands' corporate tax system fully complies with the requirements of the Parent-Subsidiary Directive (hereafter the Directive) as implemented on January 1, 1992.
1. Dividend distributions by Dutch companies - dividend withholding tax
Not withstanding treaty and domestic rates no Dutch withholding tax is due if the following requirements are met:
- Both parent and subsidiary take one of the forms listed the Directive.
- The parent company holds a 25% or more participation in the subsidiary for at least one year.
- The subsidiary is a resident of another EU Member State and is, without the option of being exempt, subject to tax in that Member State.
