What is Foreign Withholding Tax?
When you receive dividends, interest, or royalties from abroad, the foreign country may automatically withhold tax at source. If the Netherlands has a double taxation treaty with that country, you may be entitled to a full or partial exemption or refund.
Who Can Claim a Refund?
- Dutch tax residents (individuals and companies) receiving foreign income.
- Income subject to both foreign and Dutch taxation.
- A valid tax treaty applies and no alternative relief is available.
How Does the Refund Work?
Exemption at Source
Apply in the source country for reduced withholding so less tax is deducted at payment.
Refund Claim
If excess tax was withheld, submit a refund request to the foreign tax authority.
Treaty limits often apply (e.g. 15% for dividends).
What You’ll Need
- Certificate of Residence from the Dutch Tax Authorities.
- Foreign withholding tax certificate.
- Relevant treaty documentation.
- Completed foreign application forms.
Step-by-Step Guide
1. Determine the applicable treaty rate.
2. Apply for a Dutch Certificate of Residence.
3. Submit exemption or refund application abroad.
4. Offset remaining tax in the Netherlands.
5. Track country-specific deadlines.
Need Help?
Voorwaarts Tax Advisors supports you throughout the entire refund process — from documentation to communication with foreign tax authorities.
Contact us for support