Dutch corporate tax deals with the tax that should be paid in the Netherlands, on the profits that are earned by companies. A number of rules apply to this, but in general, a Dutch company has to pay 19% corporate tax. This is also called ‘vennootschapsbelasting’ in Dutch. This tax applies to the worldwide profits of a company.

There are many Dutch tax rules that have to be taken into account if you are setting up a business in the Netherlands, or if you are doing business with a company within the Netherlands. There are also many ways to benefit from tax subsidies, facilities and other regulations that reduce the burden. A great consultant can help with this.

Corporate tax is considered to impact the earnings, whilst the VAT tax system is designed to collect tax from individuals, through the companies. For more information on VAT Read here.

Dutch corporate tax rates

Currently, the Dutch corporate tax rate is 19%. This rate applies to taxable earnings of up to 200,000 euros. On the excess, a rate of 25,8% applies. This bracket may be extended in the future, which means that business can earn more at a rate of 19%. If activities are covered by the innovation box, a reduced rate may apply. The measures have been proposed by the Dutch government to stimulate a competitive tax environment for international businesses.

Exemptions

There are some exemptions when it comes to the Dutch corporate tax. The two most important exemptions are capital gains and dividends that are derived from qualifying subsidiaries, and earnings attributable to a foreign business enterprise. The first exemption applies when the subsidiary is an active company.

If that is the case, the Dutch parent company also needs to have an interest of at least 5% in such a company. In that case, it is a ‘qualifying subsidiary’, which means that the capital gains and dividends from this subsidiary are exempt of corporate taxes. The other exemption is slightly less complicated and has fewer requirements.

Foreign branches

If a Dutch company receives earnings from a foreign branch, this earnings are also exempt from Dutch corporate tax. However, this branch must be a permanent establishment or representative. This is one of the reasons that The Netherlands has internationally been known as a tax haven.

The Netherlands harbours many holding companies for multinationals and participates in many bilateral tax treaties. The various exemptions in taxation systems facilitate avoidance of paying taxes by large corporations. And even though this reputation may be a bit questionable, it isn’t illegal to use the facilities that the Netherlands is offering in this area.

Best advice about Dutch corporate tax

If you want to know more about Dutch corporate taxes or its implications for your business, it would be wise to consult a specialist about this. And if you’re looking for a specialist, you only have to remember one name: Intercompany Solutions.

Intercompany Solutions offers boutique solutions and is market leader in quality corporate services and advice on taxes.

We provide all the advice, guidance, and information you need for setting up a company or corporate structure abroad. We handle the legal form, investments, legal matters, visa requirements, and immigration and make sure that everything is addressed. We help our clients avoid pitfalls and grow their business abroad. Contact us for more information.

If you are living in a specific country, you can often only open a bank account in that specific country. That is not the case for the Netherlands. At most banks, non-residents can also open up a Dutch bank account to handle their money. And that's not just for personal versions, but also for business versions.

Some of the services related to Dutch bank accounts for non-residents, are collection and payment services, electronic banking, foreign currency exchange, debit and credit cards, guarantees, and fixed term deposits. The costs for such accounts for non-residents would depend on what type it is.

Opening a Dutch bank account

It is possible to start a company without living there. However, in many cases there is no online process to do this. You will have to consult with the bank to find out what service or type of accounts might be best suitable for your needs and requirements. Of course, you can also request the assistance of Intercompany Solutions to do this.

We can help you apply for Dutch bank accounts for non-residents and make sure that the bank gets all the signatures and paperwork that it needs. With our help, this will likely only take a few days. Your company or Dutch subsidiary can be up and running in no time! We offer a 24-hour response time, and can assist succesfully in most cases. Please note that the bank ultimately decides which clients to accept.

Benefits of Dutch checking accounts for non-residents

Having Dutch bank accounts has a number of benefits. For starters; it makes receiving payments from Dutch residents a lot cheaper and easier. This will help you in doing business. The Dutch local payment system is considered as one of the most effective systems in the world. By using this, you can reduce your costs and improve your speed and efficiency.

Opening a Dutch checking account also offers you the possibility to improve your competitive position in the Netherlands. Besides that, you can have current accounts in any convertible currency and you can use the electronic banking and cash management facilities of the bank. In many cases, no commission is charged for currency conversion.

Conditions for opening accounts for non-residents

Opening a bank account for non-residents is fairly easy in the Netherlands. However, you do have to meet some conditions before your company is allowed to open a corporate non-resident account in the Netherlands. To find out more about this, you can request a Corporates Non-Resident Account Information Form from the bank you want to open an account with.

Filling in this form will be the first step in the application procedure. Of course, Intercompany Solutions can be of assistance in this matter. We can contact the bank for all the necessary documentation and we can make sure that all the required information gets presented to the bank.

Let us help you!

So, if you are looking to apply for a Dutch checking account for your business as non-residents, we would gladly help. Who are we? We are Intercompany Solutions, and we act as your advisor when it comes to everything business-related. If you want to open a business in the Netherlands, but do not live there, we can take care of everything you need. The Netherlands is considered to be an excellent jurisdiction to start a business.

We can register your company in just a few days, and we can help you with all the required practical aspects, such as applying for Dutch company checking accounts. Up until now, we have assisted in forming more than 1000 companies. We offer a free initial consultation and can help you with every aspect of your business. Contact us now!

When registering a Dutch company investors have the option to set up either a branch or a subsidiary.

The particular circumstances regarding the interests of the international firm may definitely determine the final choice of legal entity. However certain aspects have to be considered when choosing between a Dutch subsidiary and a Dutch branch.

The general characteristics of Dutch subsidiaries and branches are listed below.

Dutch branches

Branches are permanent establishments forming single entities with the international companies that register them.

This option brings advantages and drawbacks.

Advantages of opening a branch:

• it is fairly easy to incorporate and the involved costs are generally lower;
• remitted earnings are not subject to withholding tax;
• no requirement for publication of the branch’s financial statements (there are exceptions);
• losses of the branch in the Netherlands can be compensated by profits/taxes of the main office;
• no tax for capital registration.

Disadvantages of opening a branch:

• the branch does not have a Dutch identity and functions as an international company;
• the establishing company carries full liability with respect to the obligations and debts of its branch in the Netherlands;
• it may be more difficult to gain the acceptance of the locals due to the branch’s international identity;
• permanent branch establishment may lead to double taxation problems

Read more on Dutch branches.

Dutch subsidiaries

The most important advantage of opening a subsidiary in the Netherlands is that the liability of the shareholder(s) is limited. However other aspects should also be considered. Below is a list of some pros and cons with respect to establishing a subsidiary:

Advantages:

• the liability of the shareholders is limited to their actual contributions to the capital;
• the mother company does not carry liability for its subsidiary in the Netherlands unless specified otherwise;
• the amortization of any intangible asset can be allocated for tax purposes in the Netherlands;
• nationals are likely to prefer conducting business with subsidiaries rather than branches;

Disadvantages:

• more costly and complicated procedure for establishment;
• remitted earnings are subject to withholding tax;
• large and medium companies are required to publish financial results;
• the law requires the company to appoint a director.

Read more on Dutch subsidiaries.

International entrepreneurs are advised to consider the main pros and cons listed above before deciding whether to open a Dutch branch or subsidiary. In case you require further information or support to decide which option is best for you, please, get in touch with our incorporation agents in the Netherlands. If you would like to explore other company types in the Netherlands, please visit our designated article on the Dutch company types.

Dutch notaries are members of the KNB (The Royal Association of Latin Notaries). They provide specific services different from the ones offered by other law practitioners, including attorneys, lawyers and tax advisors. Their most important features are their independence and impartiality. They might also be referred to as Public Notary Netherlands or Notary Public.

Dutch notaries have university degrees in law and some of them specialize in particular areas, e.g. real estate, family or company law. If necessary the notaries can request services of other, more specialized law practitioners, including law firms. Notaries are not able to perform the duties of lawyers; hence they are not allowed to represent people in court. Furthermore, they cannot substitute Dutch attorneys.

Dutch notaries / Junior notaries

Notaries can sign deeds, while junior notaries are not entitled to this authority. Dutch notaries can also have personal offices, but the local law does not recognize them as entrepreneurs, regardless of this fact.

Junior notaries, in principle, are training to become notaries. They are required to complete a certain period of service at a duly accredited notary office. Junior notaries have a university degree in law but may prefer to remain working in accredited offices instead of opening personal offices.

Tasks of the Dutch Public Notary

Notaries act in the interests of parties concluding transactions or agreements. Similar to Dutch medical doctors or attorneys, they are bound by confidentiality clauses that do not allow them to betray their clients.

Notaries draft and execute deeds. They issue the respective papers to the involved parties, while also keeping copies of them in their office. After the preparation of notarial agreements, notaries have to update the respective registers (e.g. for private and public companies, marriage contracts, etc.)

Notaries have expert knowledge in particular fields and therefore may perform the functions of legal advisors. Even though they are unable to perform the services offered by attorneys or lawyers, they can provide advice with respect to signing deeds.

If you plan on signing contracts in the country it is appropriate to first seek professional advice. If you need more information regarding the local legislation or additional counselling, please, call our Dutch law company.

As an expat, one incurs significant costs, especially upon relocation. Depending on the situation, an expat may have to pay for visa, residence permit application, driving licences, Dutch courses, housing and bills.

The 30% ruling is created to mitigate the negative effects of these expenses on one’s income.

Conditional on eligibility, the 30% rule means that the tax base of your gross salary as an expat in the Netherlands may be reduced by 30%.

How does the 30% rule work

The Netherlands taxation department (“Belastingdienst”) coordinates and supervises the application of this rule.

You can calculate how much you will gain from using the 30% ruling yourself – just multiply your gross yearly salary by 30% – this will be the amount not taxed. 70% will still be taxed, using the legally applicable rates.

Take into account while calculating your gross yearly income, that this rule also applies to allowances for holidays, benefits and bonuses. A car, provided by your company, is also counted into your salary. Severance pay and pension-related premiums, however, are NOT counted.

A maximum tax (effective) rate of 36.4% is applicable to the rule. This is significantly lower than regular taxation brackets in the Netherlands (highest being 52 percent).

How long can you benefit from this rule as an expat

The maximum length of application of this rule for one person is 8 years. However, this length can be reduced, in case the expat has worked in Holland before. For those employees, who have been using the rule before 2012, the maximum length of application used to be ten years. Read more on the latest developments concerning the 30% reimbursement ruling and its duration.

Additional advantages and benefits

There are other advantages to using this rule, namely:

One can select the “non-resident” option in their tax declaration (Boxes 2 and 3 of the income tax declaration). If this status is used, assets listed in Box 2 and Box 3 are not taxable. The only exception are investments in real estate.

An expat, as well as the members of his/her family, can receive a driving licence, issued in the Netherlands, in place of their old one, without going to a driving test. Normally, a driving test would be required for this.

If an employer agrees to fund international school attendance, the reimbursement will be free of taxation.

Note that if these options are used, the other deductions are still applicable.

Expats working in the Netherlands as entrepreneurs can also apply for this benefit if they are employed through their own limited liability business (BV).

It is also a way for an entrepreneur to attract valuable foreign specialists.

Application requirements

To apply for the 30% rule you have to meet the following conditions that characterise you as a skilled worker:

• The expat must be employed by a Netherlands-based company.
• The expat must have professional knowledge and experience that is not easily found in Holland. An employee is considered to have this type of experience when their salary meets certain requirements.
• The employee and employer agree, that the rule is applicable (agreement must be in written form)
• The employee has been transferred/recruited from another country.
• Before commencing work in the Netherlands, the employee has resided outside of a 150km distance from the Netherlands more than two years.

Do not hesitate to contact our advisory team if you have questions regarding this rule.

The application process

To begin the process, an expat employee and his/her employer should submit the “Application for implementation of the 30% ruling” (“Verzoek loonheffingen 30% regeling”) to the Netherlands taxation department.

Late application

It’s possible that you just found out that you’re eligible. You can still apply. Depending on the time of application, you may also be eligible for retroactive reimbursement.

For example, if you file the respective documents within 4 months from starting work, you will be reimbursed retroactively for the first months. In case of submitting the documents later than 4 months from beginning your job, you need to wait for the approval of your application.  The reimbursement period will begin on day one of the first month following this approval.

You can apply even years after you began work – the only condition is that you were eligible at the time you began working in Holland.

What happens if you change jobs?

In the event of termination of employment, where this rule has been applied, one can re-apply for continuing the application of the rule. For this, the new job must meet the requirements, set above. Additionally, in this case, the application must be filed no later than 3 months after the end of the previous employment.

Read our FAQ for more information on the 30 percent tax ruling.

For three years now an unprecedented number of firms have set up a new business in Amsterdam. Only in 2016, more than 150 multinational corporations have opened locations in the metropolitan area of the Dutch capital. This is a sign that Amsterdam is not only the prime business hub of the Netherlands but of the continent as well.

The city is an attractive destination for many international investors. Our local lawyers can assist you in opening a subsidiary or a branch of an international company in the country.

Amsterdam is an attractive location for international companies

IBM’s report on global trends confirms the competitiveness of Amsterdam as a destination for foreign companies. The city is ranked third in attracting international investments, but also fourth in PwC’s ranking for opportunities and EY’s European survey.

Amsterdam owes its global attractiveness to its agreeable business climate and its capability to remain stable throughout a year full of business challenges in Europe. Some international companies fearing the consequences of Brexit have opted for relocation and have chosen the Netherlands for their new bases of operations.

Establishing headquarters in the Dutch capital

The Netherlands offers many benefits for international companies. Some of its most attractive features are its convenient European location, developed connectivity and infrastructure, numerous opportunities for business and employment, and a suitable pool of qualified and talented Dutch and international workers.

The process for company registration in the Netherlands is easy, with different possibilities for incorporation. EU companies are free to open branches in the country, while other international corporations can register subsidiaries.

The increasing number of companies opening headquarters in the country does not come from Europe alone. Some of the biggest players of the year also come from the regions of North Africa and the Middle East. North American corporations account for more than a half of all expanding businesses in the metropolitan area of Amsterdam.

If you need more information on how to start your business in Amsterdam, please, contact our law firm in the Netherlands.

The central location of the Netherlands is one of the many assets that make the country perfect for setting up European and global offices. Holland has long been established as a main trading centre and is popular with its open economy. The country is highly developed and offers many opportunities to companies and people planning to stay or set up a business. There are also other important advantages to establishing a business in the Netherlands.

Dutch people are quite knowledgeable, most of them have a good understanding of English, while many are also fluent in French and German. The high educational standards undoubtedly play a role, but people are also aware that knowing foreign languages gives them a significant advantage in a small open country. Besides, the Dutch are interested in travelling abroad and frequently cross borders. The Netherlands is also multicultural. Amsterdam boasts the greatest variety of nationalities among the world capitals. Furthermore, the financial and political system of the country is perceived as exceptionally stable.

The Dutch tax regulations are comparatively advantageous for international companies and investors opening new businesses. The Dutch community and its government welcome international entrepreneurs. They offer various means of assistance and provide information to facilitate the registration process. Moreover, big cities are not far apart and the infrastructure is excellent. The same is true for the Information Technology infrastructure and the locals are quite good with technology. Finally, the Netherlands is perceived as the perfect test market to introduce new services and products in Europe.

These are just several of the many reasons to choose the Netherlands for establishing headquarters in EMEA, Europe or Benelux. If you would like to receive more information on the opportunities the Netherlands provides, please contact our experts. You can also read here for more information on setting up a business in the Netherlands.

Background information on the Netherlands

The Netherlands is the country’s official name, while Holland includes only two western provinces (South and North Holland) with large cities like Rotterdam, Amsterdam and The Hague.

The form of government in Holland is constitutional monarchy where the sovereign is the Dutch king. The parliament is democratic: headed by a prime minister and composed of representatives of parties voted by the people. The capital, the popular city of Amsterdam, in fact, has only about 750 000 citizens. Rotterdam is the second largest city in the Netherlands. The Hague is where the government is located. It is also the third largest city in the country after the capital and Rotterdam. The Netherlands is famous for its windmills, tulips, wooden shoes and Gouda cheese, as well as for its open policy regarding cannabis and other matters.

The Netherlands is in the global top 10 of the most developed countries. It also ranks sixth in the Index of Human Development. The country is densely populated and has an extensive network of highways, railroads and roads. Its main port, Rotterdam, is among the largest worldwide and its airport, Schiphol, located near Amsterdam, is a major airline hub in Europe. The population of the Netherlands is about 16 500 000. The country shares borders with Germany (east) and Belgium (south). Football is considered the national sport, while field hockey and ice skating are also popular.