Netherlands: Dividend withholding tax exemption denied to structures aimed at tax avoidance (Supreme Court decision)

Structures found to serve no genuine business purpose

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october 22, 2025

The Dutch Supreme Court on July 18, 2025, denied the dividend withholding tax exemption to two Belgian holding companies, finding the structures artificial and aimed at avoiding Dutch tax.

The court emphasized that economic activity within a holding does not preclude abuse if shareholding lacks functional linkage to that activity. The court found that the interposed holdings were artificial, served no genuine business purpose, and were created solely to benefit from EU tax directives.


For more information, contact a KPMG tax professional in the Netherlands:

Mees Vergouwen | vergouwen.mees@kpmg.com

Kasper Klein | klein.kasper@kpmg.com

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