Date de publication : 06-10-1907
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
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.
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 are taxed as general income under the regular CIT.
Note: capital gains deriving from qualifying participations are exempt under the participation exemption.
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.
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 !