Taxation of a Flex BV in the Netherlands

A few years ago, the Netherlands amended the Company Law by adding a new type of company, or better said by simplifying one of the most popular business forms: the Dutch private limited liability company (BV). This is how the Dutch flex BV appeared. One of the features of this type of company is the lack of a minimum share capital requirement. Also, the company must not have a local director.

Apart from the simplified incorporation requirements, the flex BV also benefits from an advantageous taxation system. Our company formation agents in the Netherlands can explain how the flex BV is taxed.

The corporate tax applied to Dutch flex BVs

The flex BV will be subject to the same taxation requirements as any other Dutch company. This means that the taxable basis of the company will be computed on the global profits registered by the company in the previous year.

Based on this assessment, the corporate tax will apply:

• - at a rate of 20% if the flex BV’s income is below 200,000 euros;
• - at a rate of 25% if the flex BV’s income is above 200,000 euros.

Also, the flex BV will be imposed with a withholding tax rate of 15% on the distribution of dividends to its shareholders. The flex BV is also subject to the value added tax, which is levied at a standard rate of 21% and reduced rate of 6%.

Accounting requirements for flex BV companies in the Netherlands

In order to be taxed, a Dutch flex BV company is required to submit certain financial documents with the tax authorities. Among these documents are:

• - annual returns which must contain information on the shares held by the shareholders;
• - financial statements which must contain information about the profits and losses of the company;
• - VAT returns, if the company is registered for value added purposes;
• - audited accounts must be filed with the Commercial Register in the Netherlands.

Flex BV companies can benefit from the Netherlands’ double taxation agreements. At this moment, the Netherlands has signed approximately 100 double tax treaties.

If you want to open a company in the Netherlands and chose the flex BV, we invite you to contact our local company registration advisors. You can also rely on us if you need accounting services in the Netherlands.