Dutch Government Publishes 2027 Fiscal Bill Consultation: Key Changes Proposed for Dividend Withholding Tax
The Dutch Ministry of Finance has today released the draft “Fiscal Collection Act 2027” for public consultation, introducing several targeted amendments to the country’s dividend withholding tax regime.
A central proposal is the introduction of a refund mechanism for Dutch resident investors (“achterliggers”) who receive dividends via foreign investment funds. This change follows a recent Supreme Court ruling requiring that Dutch investors in foreign funds are not taxed more heavily than those investing through Dutch fiscal investment institutions (fiscale beleggingsinstellingen, or fbi’s). Under the new rules, Dutch individuals and entities investing through a foreign fund will be able to claim a refund of Dutch dividend tax withheld on dividends attributable to them, ensuring equal tax treatment with domestic investors. The refund amount will be calculated using a specific formula, designed to be straightforward and to avoid the need for complex tax burden comparisons between different fund structures.
Additionally, the bill proposes a technical clarification to the group definition for determining qualifying membership rights in Dutch holding cooperatives, aiming to prevent avoidance of dividend tax through group structuring.
These measures are intended to align Dutch law with EU requirements and recent case law, and to close loopholes that could lead to unequal or unintended tax outcomes. The government invites stakeholders to provide feedback during the consultation period, with the aim of implementing the new rules by January 1, 2027.