The Netherlands and Denmark have signed a double taxation agreement in 1996. The treaty was enforced in 1999 and it is based on the Organization for Economic Co-operation and Development (OECD) Model. The Netherlands – Denmark double tax treaty covers the following taxes:
Our company formation agents in the Netherlands can offer more information on the Dutch taxation system.
More specifically in the case of the Netherlands, the income tax is made up of the following elements:
In the case of Denmark, the following taxes are covered by the agreement with the Netherlands:
Like all other Dutch double taxation treaties, the one with Denmark covers both natural persons and companies resident in on e or both countries. The Netherlands – Denmark double tax convention also provides for the status of permanent establishments, such as branch offices, factories or workshops.
In the case of Denmark, the avoidance of double taxation will occur through a tax credit granted to the individual or company undertaking activities in accordance with the provisions of the agreement. The Netherlands, on the other hand, applies a combination between the credit and the tax exemption methods.
Both countries have also agreed upon the following reduced tax rates:
For full information on the provisions of the double taxation agreement between the Netherlands and Denmark, please feel free to contact us. You can also rely on our Dutch company formation representatives if you want to open a company in this country.