The Netherlands - Black List - CFC tax legislation

18 December 2018 Add expertise tag Add service tag Add country tag

On the 28th of December 2018 the Dutch Government published a Black List which is relevant for the application of various measures for the avoidance of Dutch tax evasion.

On this Black List are countries which must be considered “low taxed” for the application of the new CFC-rules as have become effective per 1 January 2019.

The Black List will also be of relevance for the (25%) conditional withholding tax on interest and royalties which has entered into force on 1 January 2021. Also no tax rulings (ATR/ APA) will be issued anymore for transactions/ structures involving companies established in jurisdictions which are on the Black List.

The criteria for the composition of the Black List are that it must concern a jurisdiction

  • without a corporate income tax or with a (statutory) corporate income tax rate lower than 9%, or
  • a jurisdiction included in the EU list of non-cooperative jurisdictions, the so called “EU Blacklist”.

The following countries are included in the Dutch Black List:

  • American Samoa
  • Anguilla
  • Bahamas
  • Bahrain
  • Barbados
  • Bermuda
  • British Virgin Islands
  • Cayman Islands
  • Fiji
  • Guam
  • Guernsey
  • Isle of Man
  • Jersey
  • Palau
  • Panama
  • Samoa
  • Seychelles
  • Trinidad and Tobago
  • Turkmenistan
  • Turks and Caicos Islands
  • US Virgin Islands
  • Vanuatu
  • United Arab Emirates

The fact that a company is established in a jurisdiction included in the Black List, does not automatically mean that the Dutch CFC-rules apply (if the black listed entity concerns a subsidiary or permanent establishment of a Dutch corporation) or that the withholding tax on interest/ royalties actually becomes due (if the black listed entity concerns a shareholder of a Dutch corporation). There are other conditions to be met, and various exception or exemptions may be applicable.

Contact - what can we do for you ?

Should you have questions on the above or otherwise, or if you wish our advice with regard to your own situation, please contact us via e-mail or call us at our office in Amsterdam at + 31 20 570 9440 or our office in Rotterdam at + 31 10 201 0466