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The Dutch Participation Exemption for Holding Companies

An important aspect of the corporate tax system in the Netherlands is the special participation exemption according to which all capital gains and dividends generated by an eligible shareholding are exempted from taxes

Corporate tax in the Netherlands

Generally, all local companies are liable for corporate income tax, or CIT, with respect to their income generated worldwide. For profits up to 200 000 Euro the CIT rate is 20 percent. Any income exceeding this threshold is taxable at a rate … Read more

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Mergers and Acquisitions in the Netherlands

The present article considers the steps leading to company mergers or acquisitions in Holland. One such step is an investigation called “due diligence” (or DD). It aims to elucidate the actual state of the respective company.  DD allows for the assessment of potential risks with the aim to inform the final decision about the transaction and also to adjust the purchase conditions.

Agreement of confidentiality / non-disclosure

During the negotiation phase of merger and acquisition the parties often sign an … Read more

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The Innovation Box Tax Regime in the Netherlands

The tax law in the Netherlands offers a preferential regime for corporate taxation with the aim to promote activities related to investments in novel technologies and development of innovative technology. This is the Innovation Box (IB) regime. For profits meeting the requirements for IB, companies owe a total of 7% corporate tax, rather than the 20 – 25% usually levied (according to the rates for 2018).

Description of the IB regime

To be eligible for taxation under the IB regime… Read more

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The Netherlands: The True Gateway to the European Continent

Holland has long been attractive for entrepreneurs looking to establish a business due to numerous social, cultural and geographical factors. Its comparatively favorable tax climate is also an important prerequisite in the process of decision-making.

Value Added Tax (VAT)

Value Added Tax has a great influence on corporate cash flows. Generally, a business can request a VAT refund for the amount it has incurred. Still, it may take several months until the tax is recovered through the periodical return. The … Read more

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Dutch Audit and Accounting

Holland has a well developed regulatory framework for private businesses, partnerships and corporations. The main elements of the framework consist of: clear rules on financial statements, auditing, and the publication of audits.

Because of the clarity and relative simplicity of the regulations, corporations are able to have a stable base of operations where they can plan for the long term. In this article, we lay out a summary of the requirements for accounting, auditing and publication in the Netherlands. If … Read more

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The private limited company holding structure in the Netherlands

The Private Limited Company (BV in Dutch) holding structure saves money and mitigates business-related risks.

As a minimum, the holding structure includes two companies: one is the active company performing business operations, and the other is a personal company holding shares issued by the active company. The law does not differentiate between BVs with respect to their function, therefore the terms “Active BV” and “Holding BV” have no legal meaning.

What is the general structure of a BV holding?

Two … Read more

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Dutch business operations

Headquarters in the Netherlands

The Netherlands has a strategic central location with respect to the largest markets in Europe. The country is a veritable magnet for foreign businesses and firmly holds its place among the leading sites for regional or European headquarters. In this respect particularly the conurbation of Western Holland offers enough space and locations.

The Netherlands is recognized for its business supporting environment, international orientation, superior technology infrastructure & logistics, and highly qualified workforce. It is among the … Read more

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Establishing a Dutch office

The present article describes the legal and tax aspects and some practical matters concerning office establishment in Holland. It summarizes information about the Dutch legal and tax system relevant to the required procedures. The article also presents Holland as an international centre of commerce and highlights the location advantages gained by opening a Dutch office. Finally, it discusses other matters of practical importance such as living and labour costs.

Please, do not hesitate to call our tax and incorporation agents … Read more

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Brainport Eindhoven: Ten solutions for IT and high-tech businesses

Brainport Eindhoven is a combination of high tech campuses and businesses. The collaboration between commercial entities and Universities providing theoretical knowledge has proven a fertile ground for innovation. Eindhoven is famous for its Eindhoven University of Technology. Eindhoven is also known for major technology companies based in Eindhoven, such as Philips and ASML.

A complete small-scale high technology infrastructure

Brainport Eindhoven attracts organizations and companies with a wide variety of technologies, top technical universities, popular Original Equipment Manufacturers (OEMs), suppliers … Read more

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How to Open a Shop in the Netherlands

Foreigners residing in the Netherlands can either work for local businesses or establish their own companies. For the past few years people increasingly choose the second option, relying on the governmental support for start-ups.

One of the profitable businesses foreigners can establish in the Netherlands is shops. There are not many requirements to be fulfilled or licenses to be obtained. One significant advantage is the possibility to stock shops with quality products delivered from local manufacturers and producers. This is … Read more

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