Consultation additional measures against dividend stripping
21/04/26
On 16 April 2026, the Dutch Ministry of Finance launched an internet consultation (in Dutch) containing additional measures against dividend stripping. Dividend stripping sometimes involves fraud, in which dividend tax is reclaimed or offset twice. Naturally, this is illegal. In other cases, it concerns tax planning, in which dividend tax is reclaimed or offset by a party that has no economic interest in the dividend itself. The latter is considered undesirable. In 2024, measures to tackle dividend stripping more effectively have already been taken as well.
Below you can read more about dividend stripping and the additional measures that are being considered.
Dividend stripping
The term 'dividend stripping' sometimes refers to fraud, in which dividend tax is reclaimed or offset twice. That has always been forbidden. In other cases, it concerns undesirable tax planning in which dividend withholding tax is reclaimed or offset by a party that has no economic interest in the dividend itself.
In this form of dividend stripping, the legal ownership of shares and the economic interest in those shares are split in order to obtain a tax advantage. These are transactions in which a party is (temporarily) legally entitled to dividends, with the aim of reducing or offsetting dividend tax.
The legal ownership of the shares (i.e. the ownership based on civil law) is temporarily transferred to another person, while the economic interest remains with the original, often foreign, shareholder. The reason for such a transfer is that the person with whom the economic interest remains, has no (or less) right to a reduction or set off of dividend tax, while the person to whom the legal ownership is transferred does have that right. Dividend stripping differs from 'normal' securities transactions in which the legal ownership and the economic interest are jointly transferred.
Generic and specific measures
Two generic measures are presented, namely the net return approach and the so-called German-Austrian measure. In addition, there are two specific measures: one aimed at pension funds and one aimed at situations in which dividend stripping elements are spread out over a group. After this internet consultation, the measures will be re-evaluated and it will be decided whether and, if so, which measure(s) will be further developed and included in a bill.
Net return approach
This measure focuses on shares that are traded on the stock exchange. It tests the net return on a dividend with the recipient to determine whether this is also the beneficial owner. On the basis of the measure, set-off, exemption or refund of dividend withholding tax is not possible if:
- the dividend payment received by the taxpayer exceeds an amount of 20,000 to 100,000 euros (efficiency threshold, amount not yet precisely determined);
- the price risk on the shares on which the dividend is received is fully or almost completely hedged by a combination of transactions; and
- as a result of point 2, the net return on the dividend is less than 15% of the gross dividend.
German-Austrian measure
Germany and Austria each have a measure against dividend stripping that is similar to the other. Their measures stipulate that the taxpayer must run an economic risk with regard to the shares for at least 45 days in order to receive a contribution to the dividend withholding tax around the registration date (including the registration date, this makes 46 days in total).
The measure denies the right to set-off, exemption, or refund of dividend withholding tax if the taxpayer does not have a sufficient economic interest in stock exchange shares for a minimum period of time. During that period, a decrease in the value of the shares or profit participation certificates must mainly concern the taxpayer (for at least 70%). Here too, there is an efficiency threshold of 20,000 to 100,000 euros for which the exact amount has not yet been determined. As a result, bona fide and smaller investment portfolios are not affected, while the larger transactions, where dividend stripping yields more, are covered by the measure.
Measure aimed at pension funds with other activities
Pension funds (and some other organisations) are exempt from Dutch corporate income tax. They have the option of reclaiming dividend tax or applying a withholding exemption. The measure denies an exemption or refund of dividend withholding tax if a dividend is attributable to a business activity other than the investment of the pension funds deposited. Here too, an efficiency threshold of 20,000 to 100,000 euros applies (exact amount yet to be determined). In order to be able to apply this measure, the inspector must make it plausible that a dividend is attributable to a business activity other than the investment of deposited pension funds.
Measure of spreading dividend stripping elements in a group
This measure clarifies what is meant by "composition of transactions", as already addressed in the new dividend stripping rules of 2024. It counteracts elements of dividend stripping being cut up (and divided over a group of companies) in such a way that the existing measures do not seem to apply.
What does this mean for your organisation?
The proposed measures will be available for consultation from 16 April to 28 May 2026. The measure(s) that appear to be the most appropriate after the end of the consultation will be worked out in a bill. If a final bill is adopted by parliament, strict(er) conditions will probably apply to the set-off, refund or reduction of dividend withholding tax if your organisation or company receives dividends. If your organisation is affected by these measures, it may be interesting to provide input on the consultation.
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