On 5 October 2018, Dutch Prime Minister Mark Rutte announced that the government is reconsidering the abolishment of Dividend Withholding Tax (DWT) which it proposed as part of its Tax Plan for 2019. This announcement was made after Unilever decided not to transfer its headquarters from the UK to the Netherlands.

The proposal to abolish DWT as of 2020 forms part of a comprehensive tax plan that includes other relevant tax measures, such as the gradual reduction of corporate income tax rates. The reconsideration of the current proposal implies that these other measures will also be reconsidered. Abandoning the proposal to abolish DWT would allow the government to use the funds that were reserved for this measure to adopt other tax measures that would benefit the investment climate, for example, a further reduction of the corporate income tax rate (as initially planned by the government).

At the moment it is difficult to predict the outcome of these recent developments. We will continue monitoring the situation and will keep you informed.

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