How will the new Dutch withholding rules impact cooperatives?
Proposed tax rules may change how members are taxed on profit distributions
Profit distributions made by a Dutch cooperative are generally not considered dividend distributions under the Dutch Dividend withholding tax act.
However, recently proposed legislation treats members in a holding cooperative similar to shareholders in a private liability company (BV) or public company (NV) and brings holding cooperatives within the scope of the Dutch withholding tax, with broad exemptions for certain entities.
This article from RSM Netherlands explores in greater depth the legislative changes to the Dutch withholding regime and the potential impact on Dutch holding cooperatives.