Netherlands tax-exempt portfolio investment entity

The Netherlands has a number of tax regimes to facilitate fund investment. In particular, the tax-exempt portfolio investment entity was enacted on 1 August 2007. This entity is intended to be tax neutral with the income being taxed at the investor level. Consequently, it is exempt from corporate income tax and distributions are exempt from dividend withholding tax. This article discusses the taxation of this regime, as well as the requirements for its applicability.