Dividend tax over payments to Dutch Antilles possibly in conflict with EU law

On 16 January 2014, the Advocate General of the European Court of Justice issued an advice as a result of questions by the Dutch Supreme Court in two similar cases. The details in both cases were as follows: a private limited company established in the Netherlands issues a dividend to its only shareholder, a limited company established in the former Dutch Antilles. A Dutch dividend tax of 8.3% must be deducted from this sum. The key question is whether the deduction of Dutch dividend tax in this situation is in conflict with EU law. The Advocate General concludes that this is indeed the case.

Although it is not certain whether the European Court of Justice will adopt the decision by the Advocate General, we would advise you, if you find yourself in a similar position, once the tax has been paid, to submit a statement of objection on time against the payment. 

The decision in these cases is also important for situations with a share interest between 25% and 100%, and possibly even with a share interest between 5% and 25%. 

If you doubt whether it will be useful to submit a statement of objection in your situation, or if you have any other questions as a result of the above-mentioned, we would recommend that you contact your advisor.