The Dutch Ministry of Finance has published an update of the list of low tax jurisdictions on 30 December 2019. Barbados and Turkmenistan have been added to the list while Belize, Kuwait, Qatar and Saudi-Arabia have been delisted.
The list now consists of Anguilla, Bahama’s, Bahrein, Barbados, Bermuda, British Virgin Islands, Guernsey, Isle of Man, Jersey, Cayman, Turkmenistan, Turks- and Caicos Islands, Vanuatu and the United Arab Emirates. The list is relevant for three Dutch measures, being 1) the CFC rules which have been introduced as per 1 January 2019, 2) the as per 1 July 2019 renewed ruling practice and 3) the conditional withholding tax on interest and royalty’s which will be introduced as per 1 January 2021. These measures are also applicable in relation to the countries on the EU-list.
With the delisting of Belize, Kuwait, Qatar and Saudi-Arabia of the list of low tax jurisdictions and the Marshall Islands of the EU-list, the CFC-rules and the conditional withholding tax are no longer applicable to entities located in these jurisdictions. Furthermore, in case certain other conditions are met, transactions with these jurisdictions are eligible again for concluding an Advance Tax Ruling or an Advance Pricing Agreement.