Background

Dutch pension funds are typically exempt from Dutch corporate income tax (CIT) and dividend withholding tax (DWT). Foreign pension funds may also qualify for these exemptions if they are comparable to qualifying Dutch pension funds.

This comparability test is key to accessing Dutch tax exemptions. The pension scheme managed by the foreign fund must meet several strict criteria to be considered comparable under Dutch tax policy. In practice, the comparability criteria have proven to be too rigid, which inflexibility has made it difficult for foreign pension funds to obtain Dutch tax relief.

Following the Knowledge Group positions published in February 2026 on features typical of German pension schemes, including certain lump-sum benefits and occupational pension structures (see our website post on Dutch tax policy guidance on foreign pension funds), the Dutch tax authorities have now clarified two further conditions of the comparability assessment. This confirms a more accommodating approach to foreign pension schemes, whereby certain deviations from Dutch pension practice should not by default disqualify such schemes from Dutch CIT or DWT relief.

Knowledge Group position 1: minimum age and income thresholds

In the first position, the Dutch tax authorities considered a foreign pension scheme under which employees only become participants in the pension scheme once they reach a specified minimum age and minimum salary threshold. The question was whether such conditions prevent the foreign pension fund from qualifying for the Dutch pension fund exemption, considering that under Dutch policy a general obligatory participation to the employer’s pension scheme applies for any qualifying employee.

The Dutch tax authorities concluded that the foreign conditions on minimum age and income do not conflict with this concept. According to the guidance, the relevant comparison must be made on a substantive basis. The Dutch tax authorities note that Dutch pension schemes also contain comparable limitations. For example, Dutch pension legislation provides for a statutory entry age and pension accrual generally starts only once remuneration exceeds the applicable franchise. Consequently, the foreign conditions relating to a minimum age or income level are not considered materially different from Dutch pension schemes and do not prevent comparability.

Knowledge Group position 2: voluntary additional contributions

The second position concerns a foreign pension scheme that permits participants to make voluntary additional contributions. The voluntary contributions to the pension scheme are capped and, when contributed, will qualify as pension contributions which subsequently cannot be freely withdrawn by the participant.

The Dutch tax authorities considered that similar elements are present in comparable Dutch pension schemes. The current policy for the pension schemes tax exemptions requires that (i) the contributions form part of the pension scheme; (ii) the contributions retain the purpose of pension savings; and (iii) the employee loses the possibility to freely withdraw to the contributed amounts.

In the Knowledge Group position, the Dutch tax authorities confirm that the nature and purpose of the voluntary contributions offered under the foreign pension scheme do not deviate materially from what may be offered in Dutch pension practice and as such do not prevent comparability.

Our view

The new guidance is relevant for foreign pension institutions seeking Dutch CIT or DWT relief. It provides further support for foreign pension schemes with features that differ from Dutch pension practice but are, in substance, comparable to Dutch pension arrangements.

The Knowledge Group positions should be viewed against the background of broader concerns about whether a rigid application of the Dutch pension fund exemption policy is compatible with EU law. While the guidance addresses specific comparability issues and appears to be of limited scope, it does confirm the broader reassessment of the applicable comparability criteria which has been announced by the Dutch government in recent parliamentary documents.

It should be noted, however, that practical limitations may remain for foreign pension institutions investing through vehicles that are treated as non-transparent under Dutch tax classification rules. This is particularly relevant for German pension investors using commonly applied vehicles such as Sondervermögen. Where such vehicles are classified as non-transparent for Dutch tax purposes under the rules in effect since 1 January 2025, access to the Dutch pension fund exemptions may be restricted in practice. A reassessment of existing Sondervermögen structures may therefore be appropriate, taking into account the updated Dutch classification framework. In this respect, reference is made to our article on the Dutch tax classification of investment funds.

Contact us

Should you require legal or tax advice on the Dutch tax treatment of foreign pension funds and investment structures, please contact your trusted Loyens & Loeff adviser or one of the contacts listed below.