Esmée de Jong

  School of Business and Economics | Bachelor Fiscale Economie

"Dutch Conditional Withholding Tax: How does the Dutch conditional withholding tax on dividends affect tax planning of multinationals established in the Netherlands?"

Esmée's elevator pitch
"The Netherlands has been a prominent conduit country for multinationals due to its low withholding tax rates on outgoing royalty, interest, and dividend payments. However, with the implementation of the conditional withholding tax on royalties and interest in 2021 and the scheduled addition on dividends in 2024, multinationals are considering shifting their tax residency. This thesis analyses how the conditional withholding tax affects the tax planning of Dutch-based multinationals. Critiques regarding the design of the conditional withholding tax reveal that the tax can be circumvented through various adjustments in group structures. Consequently, this thesis asserts that such loopholes could potentially impact the Dutch economy."