The Netherlands has created a «black list»

On December 28^th, 2018 the Dutch government has published a national list of jurisdictions with low tax rates, which will be used as a tool to combat cross-border schemes to dilute the tax base and remove income from taxation. The list includes countries and territories that refuse to cooperate on tax issues as well as jurisdictions in which there is no corporate income tax or the rate of this tax is below 9%. Particularly, these countries are: Kuwait, Qatar, Cayman Islands, Guernsey, Bahrain and others. Some of them (Virgin Islands, the Guam, Samoa, as well as Trinidad and Tobago) are in the EU «black» list on the end of 2018. The rest of the defendants were added by the Dutch themselves.

What is the meaning of the black list?

1. Additional controlled foreign companies, which entered into force on January 1^st, 2019, will be applied to residents of blacklisted jurisdictions.

2. Companies from these jurisdictions will be obliged to pay tax on repatriation of interest and royalties received from the Netherlands from January 1^st, 2021 at a rate of 20,5%.

3. The Dutch tax authorities will not issue "preliminary tax rulings" in relation to transactions with companies based in black list jurisdictions.

The "black list" of offshore companies is planned to be updated every year. Among other factors, its composition will be influenced by the above-mentioned European list. If any country or territory falls into the EU list, it will be automatically included in the Dutch list.

On materials of the following website: https://www.government.nl/latest/news/2018/12/28/netherlands-publishes-own-list-of-low-tax-jurisdictions-in-fight-against-tax-avoidance