The manager of Cromwell European REIT has clarified that the Dutch government’s intention to introduce a measure which will subject Dutch fiscal investment institutions (FBI) to Dutch corporate tax income, will not affect the REIT.
The changes will be effective from Jan 1, 2024.
Under the current tax rules in the Netherlands, Dutch FBIs are effectively exempt from Dutch corporate income tax but mandatory annual distributions are in-principle subject to Dutch dividend withholding tax.
In its statement, the REIT manager noted that Cromwell European REIT and its subsidiaries are already subject to corporate income tax in the Netherlands as they are not considered as FBI entities.
As such, the proposed changes to the Dutch FBI regime will not have an implication on REIT’s distributable income.
Units in Cromwell European REIT closed 4 European cents higher or 2.03% up at 2.01 Euros ($2.82) on Sept 22.
