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26 October 2021 / news

Netherlands: bill of amendment to the proposed exit tax removing retro-active effect

On 26 October 2021, a bill of amendment to the pending bill of law for an exit tax for Dutch dividend withholding tax (DWT) purposes was published removing the retro-active effect that was embodied in the original proposal.

Based on the original proposal (see our Flash of 10 July 2020 and our website posts of 18 September 2020, 9 October 2020 and 15 March 2021 for previous developments in relation to this proposal) certain cross border migrations, mergers, demergers and share-for-share mergers that took place on or after 18 September 2020 would be subject to DWT based on a deemed distribution.

On the basis of the amendment, the proposed exit tax will no longer have retro-active effect to 18 September 2020 and will, if enacted, only tax certain cross-border mergers, demergers, migrations and share-for-share mergers that take place as from its entry into force.

It is not clear if and when the draft bill will be discussed in parliament and, if so, whether there will be a majority in favour of the proposed exit tax for DWT purposes.

We will keep you informed of further developments. For further information, please contact your trusted advisor within Loyens & Loeff.

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