Supreme Court Issues Third Ruling on Fictitious Wage and Tax Treaties: Decision of the Netherlands Supreme Court of 18 November 2016, BNB 2017/34

The authors, in this note, analyse the decision of the Netherlands Supreme Court in BNB 2017/34 (18 November 2016), wherein the Court addressed the impact of the fictitious wage concept in article 12a of the Wage Withholding Tax on classification under the Netherlands-Portugal Income and Capital Tax Treaty (1999) in respect of a Portuguese resident individual shareholder having a substantial interest in a Netherlands resident company.