The Dutch Supreme Court issued two rulings that provide guidance on how to apply the Dutch dividend withholding tax exemption, more specifically the anti-abuse provisions therein. Under certain conditions, the Netherlands fully exempts dividends Dutch companies distribute from dividend withholding tax, but the exemption may be denied in cases of abuse. The Dutch Supreme Court upheld the lower court’s decision and ruled in both cases that the structures were abusive at the time the Dutch subsidiary distributed the dividends. This update is relevant for multinational groups that have a Dutch subsidiary as part of their group structure. This GT Alert outlines considerations for multinational companies with Dutch subsidiaries.

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