The use of the list of substance requirements has also been broadened by the Dutch Tax Bill 2018. In this respect, companies need to have “relevant substance” in order to benefit from the dividend withholding tax exemption (see our blog) and in the Netherlands non-resident tax provisions, the substance of the foreign shareholder is assessed.The substance requirement as clarified in the Dutch Tax Bill 2018 are largely the same to the previous list, but with two additional key changes: the holding company (i) has to incur at least EUR 100,000 in salary expenses in relation to the intermediary holding activities, and (ii) must have and use its own office space (at its disposal for at least 24 months). Please see our blog section for our analysis and takeaways on the substance requirements as of 1 January 2018.

Please feel free to exchange ideas with us on your tax position and/or that of your company.

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