The Netherlands - Black List - CFC tax legislation

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