Changes to Netherlands blacklist of low-taxed jurisdictions

On 28 December 2021, the Dutch Ministry of Finance updated its blacklist of low-taxed jurisdictions applicable for the tax year 2022. Compared with last year’s blacklist, only Seychelles is removed. No jurisdiction has been added to the blacklist.

Tax implications in the Netherlands
The Netherlands has a blacklist for jurisdictions without a statutory profit tax and jurisdictions with a statutory profit tax rate of less than 9%. The Dutch blacklist also includes non-cooperative jurisdictions identified by the EU. At this stage, the main effects of being on the (combined) Dutch blacklist are:

1. application of controlled foreign company rules;
2. non-eligibility for obtaining an advance tax ruling when in a transaction or corporate structure a blacklisted jurisdiction is involved and;
3. application of a withholding tax at a rate of 25.8% (2022) on interest and royalty payments (in)directly made to blacklisted recipients.

For 2022, the Dutch blacklist includes Anguilla, Bahama’s, Bahrain, Barbados, Bermuda, British Virgin Islands, Cayman Islands, Fiji, Guernsey, Guam, Isle of Man, Jersey, Palau, Panama, Samoa, Trinidad and Tobago, Turkmenistan, Turks and Caicos Islands, the United Arab Emirates, the US Virgin Islands, US Samoa and Vanuatu.
 
Inclusion of a jurisdiction on the Dutch blacklist applies for the entire calendar year 2022 with an annual revisit of the list effective the following calendar year.