Companies and individuals who perform various business activities or are employed in the country must observe the rules for paying taxes in the Netherlands
. This is mandatory for companies incorporated in the Netherlands
but also for branches of foreign companies.
If you are a business owner, our agents can also give you information about the accounting principles
and auditing in the Netherlands.
Corporate taxation in the Netherlands
The basis for corporate taxation in the Netherlands
is residency. Companies that are incorporated in the country are all regarded as Dutch resident legal entities. These types of companies
are liable for corporate tax
on their worldwide income. Non-resident Dutch companies are only taxed on their income produced in the Netherlands. The corporate tax rate
is 20% on the first 200,000 EUR and 25% on profits that exceed this amount.
The Netherlands does not impose a withholding tax on interest or royalties
. Dividends are exempt from taxation on a domestic level and they are subject to a 15% in other cases. A large number of double tax treaties
signed by the Netherlands with other countries allow for double taxation relief
Other taxes for Dutch companies include the real estate transfer tax
and the value added tax
that has a standard rate of 21% and a reduced rate of 6%. All VAT payers in the country are required to register.
The tax year for companies in the Netherlands is usually the same as the calendar year and the period is 12 months, although shorter periods may be allowed in the year in which the company is incorporated. Corporate income tax returns are filed annually within five months of the end of the fiscal year.
Personal taxation in the Netherlands
Residents in the Netherlands are taxed on their worldwide income while non-residents only on the income they produce in the country. Personal taxation is progressive in the Netherlands and includes three taxation boxes: box 1 for income derived from employment, housing or an enterprise, box 2 for income derived from substantial interest and box 3 for savings and investments.
Individuals must also observe the tax year and file the tax return before April 1 the next year. Penalties apply for late filings or non-payment.
For more information about taxation and tax compliance
please contact our Dutch representatives.