28/January/2026
Funds may need to act before 1 March 2026 to avoid Dutch tax liabilities
As of 1 January 2025, the Dutch classification rules to determine whether an (investment) fund is transparent for Dutch tax purposes have fundamentally changed. Put shortly, funds that were transparent before 1 January 2025 (under the old rules) or that have been formed after 1 January 2025 may be classified as a non-transparent ‘fund for joint account’ (fonds voor gemene rekening or FGR), unless action is taken before 1 March 2026. Non-transparency can lead to Dutch corporate income tax liability for the fund and/or to withholding taxes on distributions made to or by the fund.
Please find a more detailed overview (including flowchart) of the current (and proposed) classification rules here. Feel free to contact us for a quick check on whether anything needs to be done in the coming weeks.