Step-up in case of cross-border legal merger and legal split-off
In the Dutch Dividend Withholding Tax Act a step-up will be introduced for cross-border legal mergers and split-offs. A similar rule already applies to cross-border exchanges of shares. Under the new rules the fair value of the assets transferred as part of the merger or split-off, is considered to be capital paid up on the shares issued at the time of merger or split-off. An exception is made for the value of shares in a Dutch company that are acquired in the merger or split-off.
The new rules prevent that the legal merger or split-off creates a tax claim the Netherlands on existing foreign profit reserves.back to overview