Withholding 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 withholding tax on outgoing interest and royalties. This applies to all 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?

This law has come into force on 1 January 2021.

Questions relating to this article?

This information is provided by

Netherlands Enterprise Agency, RVO