Dutch Court Holds that MFN Clause Regarding Dividends in Netherlands-South Africa Treaty Triggered by Signing of Protocol to South Africa-Sweden Tax Treaty

In a recent decision published 26 November 2015, the Dutch lower Court of Zeeland-West Brabant has ruled that the most favoured nation (MFN) clause concerning dividends under the 2008 protocol to the 2005 Netherlands-South Africa income and capital tax treaty was indirectly triggered by the signing of the 2010 protocol to the 1995 income tax treaty between South Africa and Sweden.

The case involved an appeal on a refund claim for 5% Dutch withholding tax withheld on dividends paid in 2013 by…