International issues: refund of or exemption from Dutch dividend tax
Dutch companies withhold tax from the dividend they distribute 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 have shares in a Dutch company? In that case, it could be that you are exempted from or receive a refund of Dutch dividend tax.
Exemption or refund?
In case of a (partial) exemption, a company already withholds less or no dividend tax from the dividend to be distributed on payment.
Did you not apply for an exemption? In that case, you may request (in retrospect) a refund of overpaid divided tax.
Intercompany dividend or portfolio dividend?
Your entitlement to an exemption or refund and the amount of this exemption or refund primarily depend on the amount of shares you have 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 dividend. Other percentages apply to other countries, depending on the tax treaty the Netherlands has concluded with the country.
- Do you have shares but no intercompany dividend? In that case, it concerns portfolio dividend (investment dividend).
Foreign bodies that are not subject to profits tax
As a body, are you established in the EU or Iceland, Norway or Liechtenstein (EEA) or in a 'third country'? In that case, 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 the EEA? In that case, you may request a dividend tax refund if you meet the following conditions:
- It must concern portfolio dividend.
- The Netherlands and the country in which you are established must have agreed upon a regulation on information exchange.
You may request the refund using the form 'Verzoek teruggaaf dividendbelasting buitenlands lichaam' (Application dividend tax refund for foreign bodies with exemption from profits tax). You can download this form.