DOING BUSINESS IN NETHERLANDS

Posted By Romain Ponsot on Oct 6, 1907 in Doing Business


Date de publication : 06-10-1907

modèle générique Placeholder
modèle générique

Complete list of the other countries…

 

The following information are for the sole purpose  of providing a general overview of  the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.

 

Yes we tax in Netherlands

 

Flash News

New tax reform: No specific information

New tax treaties:

  • Protocol to tax treaty between Netherlands and Uzbekistan is signed by both and ratified by Uzbekistan.
  • Tax treaty between Netherlands and Pakistan is under revision.

Local tax advisors

No specific information on the local tax advisors.

Useful Links

Website Ministry of Finance: Click here

VAT identification number within EU:

Permanent Establishment

The definition of Permanent Establishment follows the wording of article 5 of the OECD Model

  • Dependent agent who habitually concludes contracts in the name of a non-resident company (except is the activity is limited to purchase of goods);
  • Fixed place of business, building site, construction, assembly or installation and any related supervisory activity.

Resident companies are taxed on their worldwide income.

Entities are considered to be resident for tax purposes in Netherlands if their place of management & control is in Netherlands.

Note: the definitions of permanent establishment and place of residence are subject to the relevant provisions of any applicable double tax treaty, if any.

Corporate Income Tax

The general CIT tax rate is a progressive tax rate up to 25%.

Non-taxable income includes the following:

  • Dividends received from qualifying participations
  • Certain capital gains deriving from qualifying participations
  • A branch of a non-resident company is only taxed on its Netherlands-source income attributable to the branch (resident companies are subject to tax on their worldwide income).

Non-deductible expenses includes the following:

  • Revenues benefiting from any participation exemption (i.e. dividends, capital gains,…)
  • Fines and penalties
  • CIT and similar taxes (including foreign withholding taxes)

Carry forward: yes 9 years, but some restrictions may apply.

Carry back: Yes 1 year.

Companies should submit the tax return annually before the 1st June of the following year.

Companies shall pay monthly advance payments.

Whithholding Taxes (payment to foreign companies)

The local tax rates in Netherlands are the following, subject to the provisions of an applicable double tax treaty, if any.

Under the domestic tax law there is no WHT on the profits paid from a branch to its foreign head office.

The general rate of WHT on dividends is 15% of the gross amount.

The general rate of WHT on interest is 0%.

The general rate of WHT on Royalties is 0%.

The general rate of WHT on management fees is 0%.

The general rate of WHT on technical services is 0%.

Capital gains

Capital gains are taxed as general income under the regular CIT.

Note: capital gains deriving from qualifying participations are exempt under the participation exemption.

VAT

Standard VAT tax rate is 21%

Zero-rated supplies include, subject to certain conditions:

  • exports of goods;
  • intra-Community supplies of goods;
  • Vessels and Aircraft engaged in commercial international traffic;
  • Services related to zero-rated vessels and Aircraft;
  • transport of goods and services directly related to import and export of goods;

Exempt supplies include, subject to certain conditions:

  • Certain financial services
  • Certain insurance services
  • Training and education

Note: exempt transactions differ from zero-rated transactions in that the input VAT associated with exempt transactions is not deductible.

In case where for a tax period, Input VAT exceeds Output VAT, certain non-resident companies (which are not required to register and incur Dutch VAT in the course of their business activities in Netherlands) may apply for a refund.

No other specific information of VAT in Netherlands.

Miscellaneous

The general statute of limitation is 3 years.

There is no foreign exchange control in Netherlands. Income and capital can be freely repatriated.

There are no properly thin capitalization rules in Netherlands. However, Netherlands established certain limitation on the deductibility of interest (i.e. interests for the loan which are deemed to be an informal capital contribution; interests which have an excessive interest rate; ….).

 

 

 

Do not hesitate to share your experience in Netherlands with us in the comments below. Any comments are welcome !

 

Romain Ponsot

Romain est conseiller en fiscalité au sein d’un leader mondial du shipping. Grâce à son expertise tant en matière de TVA, fiscalité internationale, problématiques intragroupe qu’en matière de fiscalité des particuliers, Romain vous guidera au travers d’articles professionnels et humoristiques. 

Romain, poète dans l’âme, aime particulièrement le couscous et passe beaucoup de temps à glacer ses souliers. Profil LinkedIn
Romain Ponsot

Les derniers articles par Romain Ponsot (tout voir)

Trackbacks/Pingbacks

  1. INTERNATIONAL TAXATION - Do You Tax? - […] Doing business in Netherlands  […]

Submit a Comment

Votre adresse de messagerie ne sera pas publiée. Les champs obligatoires sont indiqués avec *

Ce site utilise Akismet pour réduire les indésirables. En savoir plus sur comment les données de vos commentaires sont utilisées.