The Dutch Ministry of Finance recently announced that the new regulation for the avoidance of double taxation between the Netherlands and Curaçao is expected to take effect as of January 1, 2016. The government bill on this regulation is currently still being debated by the Lower House and, once it has been dealt with and approved there, will still have to be approved by the Upper House.
In anticipation of the new tax regulation, the Netherlands has extended the undertaking also given to Curaçao in previous years not to apply the Dutch corporate income tax provision concerning the taxation of dividends and profits realized from the transfer of shares in 2015. This provision could otherwise apply in the case of a substantial interest shareholding that is not part of a company’s business assets and where one of the primary objectives for holding this substantial interest is to avoid another party having to pay income tax or dividend withholding tax. This mainly regards Curaçao passive holding companies with an interest of 5% or more in a Dutch subsidiary.
If you would like more information on this issue, our tax advisors will naturally be happy to be of assistance.