1. 1 The Netherlands in international taxation ‘anti-abuse measures’ in profit and dividend taxes

2. 2 Dutch participation exemption Capital gains and dividends on qualifying participations exempt from corporate income tax in the Netherlands Main conditions: shareholding of at least 5% in participation, and participation should not have more than 50% passive assets If the participation has more than 50% passive assets, participation exemption still applies if it is sufficiently taxed according to Dutch standards (‘subject to tax test’) No specific CFC-legislation included in the Corporate income tax act

3. 3 Dutch participation exemption The following participations are considered “Passive investments”: -If more than 50% of the assets of the participation consists of < 5% investments in companies; or -If the participation is operating as intra-group finance or leasing company Assets used for intra-group financing activities; -If more than 50% of the assets of the participation consists of assets not used within the business enterprise of the participation.

4. 4 Dutch limitations on interest deductions -Anti-abuse regulations  base erosion For intra-group interest payments in specific situations, however counter evidence possible (business reason or “reasonable tax test”) situations: - loans taken up for repayments of capital and/or dividends - capital contribution in a subsidiary - acquisition or enlargement of a subsidiary -Thin capitalization rules  debt-equity ratio of 3:1 -Fraus legis doctrine

5. 5 Dutch withholding taxes Dividends: Dutch dividend tax rate of 15% - often reduced under tax treaty - structuring possibilities to avoid (reduced) rate Anti-dividend stripping rule: No reduction of Dutch dividend tax if between the Dutch company and its shareholder a new company is interposed which is entitled to a more reduced dividend tax rate than the previous shareholder Interest and royalties: no Dutch withholding taxes levied

6. 6 Dutch concept of beneficial owner Dutch tax law does not contain a general definition of beneficial ownership However, Dutch corporate income tax law does contain a article that indirectly defines beneficial ownership credit of foreign withholding tax is not allowed if a company is involved in intra-group finance activities whereby its equity at risk is the lowest of: 1% of the debts receivable; or € 2,000,000 Furthermore:substance requirements should be met in order to avoid spontaneous exchange of information

7. 7 Dutch tax treaty policy In the past, hardly no anti-abuse clauses in tax treaties The last 10-15 years: more and more anti-abuse clauses (such as “limitations-on-benefits”-clauses and specific articles in the protocol, e.g. Dutch-Maltese tax treaty protocol art. ) Recently published policy of Dutch Ministry of Finance refers specifically to inclusions of anti-abuse clauses in new to be concluded or re-negotiated treaties

8. 8 Contact details THE HAGUE Parkhaghe Parkstraat 20 P.O. Box 177 2501 CD The Hague AMSTERDAMWorld Trade Center Amsterdam Tower H, 25th floor Zuidplein 206 1077 XV Amsterdam Martin Bergwerff (martin@hamelinktooren.com) Olga Tsetlina (olga@hamelinktooren.com) Tel: +31 70 310 50 70 www.hamelinktooren.com