No changes to Netherlands blacklist of low-taxed jurisdictions

On 27 December 2022, the Dutch Ministry of Finance announced its blacklist of low-taxed jurisdictions applicable for the tax year 2023. Compared with last year’s blacklist, there have been no changes in the list of designated jurisdictions.

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 if a blacklisted jurisdiction is involved in a transaction or corporate structure and;
3. application of a withholding tax at a rate of 25.8% (2023) on interest and royalty payments (in)directly made to blacklisted recipients.

For 2023, 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 2023 with an annual revisit of the list effective the following calendar year.