Dutch Tax Administration Explains Outbound Dividends Not Eligible for Tax Treaty Benefits May Still Apply Domestic Withholding Exemption

The Dutch Tax Administration has published its position on whether a dividend distribution is eligible for the withholding tax exemption under Article 4(2) of the Dividend Withholding Tax Act in cases where the dividend is not eligible for treaty benefits. Article 4(2) provides a withholding tax exemption on proceeds from shares, profit-sharing certificates, capital contributions, and certain loans if the beneficiary is established in a state, other than an EU/EEA Member State, with which th…