On 5 June 2019, the Lower Court of North Holland gave its decision in case no. 17/871 on the impact of the Russian thin capitalization rules on the application of the Dutch participation exemption based on article 9 of the Netherlands - Russia Income and Capital Tax Treaty (1996). Details of the case are summarized below. Summary The taxpayer, a Dutch BV had made loans to a Russian related company on which it received interest. Under Russia’s thin capitalization rules, this interest was partially non-deductible. Based on this, the taxpayer argued that the interest payment should be split into an...