TAX NEWS - may 2010
Netherlands Tax: CA agreement changes procedure for dividend withholding tax exemption for U.S. pension funds
Previously, a U.S. trust, company or other organization that qualified for benefits under article 35 could request treaty benefits, such as a reduced Dutch (dividend) withholding tax from the Netherlands, by supplying U.S. Internal Revenue Service (IRS) Form 6166 or a "qualification" certification issued by the competent authorities in the Netherlands.
As a result of the competent authority agreement, as from 31 March 2010, only Form 6166 can be used to obtain treaty benefits - it is no longer possible for a U.S. tax-exempt trust, company or other organization to request a qualification certification from the Netherlands tax authorities. However, a U.S. resident that already has a qualification certification may continue to claim benefits using the certification for three more years (i.e. until 1 April 2022), provided there is no material change in the facts and circumstances. IRS Form 6166 can be obtained by completing and sending Form 8802, Application for U.S. Residency Certification, to the appropriate IRS office identified in the Instructions to Form 8802.