Dutch Government Launches Consultation On Updated List Of Low-Tax Jurisdictions

; posted on
October 8th, 2019

The Dutch Ministry of Finance announced it has launched a public (Internet) consultation on the list of low-tax jurisdictions for 2020.

Background

On 28 December 2018, the Dutch Government published its list of low-taxed and non-cooperative jurisdictions to be used for purposes of three new measures (CFC, revised ruling practice, and conditional withholding tax on interest and royalties) to combat tax avoidance and tax evasion. The list will be updated each year to include those jurisdictions that the Dutch Government has identified as having no profit tax regime or a profit tax regime with a statutory rate of less than 9% (low-taxed jurisdictions) as well as those jurisdictions that are included in the EU blacklist for non-cooperative jurisdictions in tax matters, as published in the calendar year prior to the calendar year in which the relevant fiscal year commences.

The list published includes five jurisdictions that are currently included in the EU blacklist for non-cooperative jurisdictions in tax matters: American Samoa, Trinidad and Tobago, United States Virgin Islands, Guam and Samoa.

The Dutch Government further identified 16 additional low-taxed jurisdictions that are added to this list: Anguilla, Bahamas, Bahrain, Belize, Bermuda, British Virgin Islands, Guernsey, Isle of Man, Jersey, Cayman Islands, Kuwait, Qatar, Saudi Arabia, Turks and Caicos Islands, Vanuatu and the UAE.

The consultation

Through the consultation, the Ministry of Finance is seeking input on its proposed list of low-tax countries for 2020 as an amendment to the existing list. For 2020, it proposes to add to the current list:

  • Barbados
  • Turkmenistan

It also proposes removal from the current list:

  • Belize
  • Saudi Arabia

Both proposed additions and removals are the result of further analysis of how those jurisdictions establish the applicable corporate income tax rate(s). The inclusion of Barbados is proposed because, with effect from 2019, it has lowered its statutory corporate income tax rates such that these are now below the 9% threshold.

The list of jurisdictions will be reassessed annually to be used to combat tax avoidance and tax evasion in a reliable manner.

Dutch Government

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