Tax haven blacklist

The Netherlands has compiled a Government Gazette-published, 21 country strong tax haven blacklist for deployment in the context of new anti-tax evasion measures.

The Dutch-prepared blacklist – alongside the EU-prepared blacklist of five countries – features countries that either do not levy corporate income tax at all or do so at rates of less than nine percent. These are as follows: Anguilla, Bahamas, Bahrain, Belize, Bermuda, British Virgin Islands, Cayman Islands, Guam, Guernsey, Isle of Man, Jersey, Kuwait, Qatar, Samoa, Saudi Arabia, Trinidad and Tobago, Turks and Caicos Islands, United Arab Emirates, United States Samoa, United States Virgin Islands, and Vanuatu.

The list will be used in the context of the supplementary controlled foreign company (“CFC”) rules effective the first of January of this year. These rules have been designed with the aim of calling a halt to companies evading tax by shifting their mobile assets to low-tax jurisdictions.

The blacklist is also to be deployed in connection with the forthcoming conditional withholding tax on interest and royalties, which latter system will entail companies established in any of the countries included in the Dutch-prepared tax haven blacklist with effect from 2021 paying a 20.5 percent tax charge on any interest and royalties received from the Netherlands.

The Tax and Customs Administration is not to issue any new rulings in connection with transactions involving companies established in any of the blacklisted jurisdictions.

Dutch version: Zwarte lijst laagbelastende landen