Recipient of dividend outside the Netherlands: dividend tax exemption

Do you or your organisation receive dividend from a company (vennootschap) based in the Netherlands and do you live outside the Netherlands, or is your organisation based outside the Netherlands? Then you or your organisation are possibly entitled to a (partial) dividend tax exemption. The level of exemption primarily depends on whether you or your organisation receive intercompany dividend (participation dividend) or portfolio dividend (investment dividend).

Intercompany dividend is dividend that your organisation receives from another company of which it holds 5% or more shares. In exceptional cases, less than 5% shareholding can also be considered a participation. All other payments are portfolio dividends, also referred to as investment dividends.