Bill Of Amendment To The Dutch Exit Dividend Withholding Tax Proposal Reinstates A Retro-active Effect

On 15 November 2021, a third bill of amendment was published in respect of the pending opposition member's bill for an exit tax for Dutch dividend withholding tax (DWT) purposes. This amendment reinstates a retroactive effect back to 15 November 2021, 3PM CET.

Based on the original proposal submitted by a member of a left-wing opposition party, certain cross-border migrations, mergers, demergers and share-for-share mergers that took place on or after 18 September 2020 would be subject to DWT based on a deemed distribution of profit reserves exceeding recognised capital for DWT purposes. The retroactive effect until 18 September 2020 was removed from the pending bill only on 26 October 2021. For more information on the proposed bill of law and its subsequent amendments, we refer to our Flash of 10 July 2020 and our latest website post of 26 October 2021.