The Netherlands Open Limited Partnerships

On the 29^th March 2021 the Ministry of Finance in the Netherlands published a consultation in regards to legislative changes concerning open limited partnerships and mutual funds in an attempt to align with international standards and moderate the potential for hybrid mismatches.

The proposed changes were originally to come into effect as of 1 January 2022, but as the final bill is now not expected to be submitted until later this year this is not feasible and will most likely be extended to come into effect at a later date and if adopted will mean that open limited partnerships will no longer be independently taxable for corporate income tax purposes and will not have a dividend withholding tax obligation.

Entities that are comparable to Dutch legal forms will not notice much difference, if not similar to Dutch legal forms then either a fixed or symmetrical approach will be implemented.  It is recommended that any structures that derive income from the Netherlands be examined closely to see how the changes are likely to affect operation.