South African Tax Court Holds MFN Clause in Tax Treaty with the Netherlands is Triggered by MFN Clause in Tax Treaty with Sweden

The South African Tax Court reportedly issued a ruling on 12 June 2019 that the dividends MFN clause added by the 2008 protocol to the 2005 Netherlands-South Africa tax treaty was triggered by way of the dividends MFN clause added by the 2010 protocol to the 1995 South Africa-Sweden tax treaty.

The case involved a South African company that was wholly owned by a Dutch parent. The South African company distributed dividends to its Dutch parent in April and October 2012, on which 5% tax was wi…