Retention tax on outgoing interest and royalties

This information is provided by

Netherlands Enterprise Agency, RVO

Effective date: 1 January 2021

What changes?

Dutch companies will need to pay retention tax on outgoing interest and royalties. The same goes for companies that pay interest or royalties to other companies within the same corporation that are based in a country with a low tax rate. Every year, a list is published with countries that have a low tax rate. At the moment, there are 21 countries on the list.

The government aims to combat tax evasion with this new law. It also wants to stop companies from using the Netherlands as a means to siphon off money to countries with low taxes.

For whom?

Companies that pay interest and/or royalties to companies within the same corporation that are based in a country with a low tax rate.

When?

The law is expected to come into force on 1 January 2021.

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the upper and lower houses of parliament or proclamation of the Order in Council (Algemene Maatregel van Bestuur, AMvB) or ministerial decree and publication in the Staatsblad or the StaatscourantExternal link (in Dutch).

Questions relating to this article?

Please contact the Netherlands Enterprise Agency, RVO

This information is provided by

Netherlands Enterprise Agency, RVO