Last October the government of the Netherlands released a document announcing its future plans. The paper was finalized after a negotiation of more than 200 days. The document promises changes in various aspects of society. They include additional police funding and improvements of counterterrorism and cyber security. The government also envisages reforms in the labour market concerning sick leave, procedures for dismissal, rules for paternity leave and minimum wages. It plans to adopt a new system for pensions and amend … Read more
On September 19, 2017 (Budget Day in the Netherlands) an official legislative proposal for amendment of the Dutch withholding tax on dividends was published in connection to the Tax Plan for 2018. In summary, the proposal referred to a broadened exemption from withholding tax on dividends applied unilaterally with the aim to maintain the favourable fiscal climate in Holland.
On the same day, the Senate approved all proposals included in the Tax Plan for 2018. Therefore, the broadened exemption from … Read more
The Dutch government obtains its revenue mostly by taxation. The Financial Ministry implements the national legislation on taxes and the Belastingdienst deals with its actual execution. You must pay taxes if you generate income while staying in Holland.
A brief history of taxation in Holland
Dutch people started paying taxes centuries ago. In the 1800’s the government guaranteed its income through taxation of indispensable goods like soap, firewood, salt, meat, grain, wine, coal, wool and peat. Back then all people … Read more
Below are the answers to the most common questions regarding the 30% reimbursement ruling in the Netherlands:
When should I apply for the 30% reimbursement ruling?
Expats may apply for this tax advantage within 4 months after the conclusion of their employment contracts. For those applying after the 4-month interval, the ruling becomes effective on the month after the submission of the application. People who have been hired in the Netherlands for some time can also take advantage of the … Read more
All international citizens living and working in the Netherlands need to contact the local tax authorities (Belastingdienst) at some point.
Functions of the Dutch tax office
The local tax office Belastingdienst is the Dutch governmental structure in charge of assessing and collecting taxes and excise and customs duties. The Belastingdienst, as part of the Financial Ministry also controls the distribution of allowances, e.g. unemployment and healthcare benefits.
Expat services in the Belastingdienst
Most international residents contact the tax office for … Read more
Every Dutch company is required to subscribe at the Trade Registry of the Chamber of Commerce. This is a necessary prerequisite for VAT registration and fulfilment of other financial duties. The procedure is mandatory for all types of legal entities, including private limited companies, companies with limited liability, foundations and associations. Registration at the Chamber of Commerce is also mandatory for partnerships (e.g. general partnerships) and sole proprietors. The procedure for subscription at the Trade Registry involves the payment … Read more
The Netherlands uses a value-added tax system (short: VAT). This system is very similar to the system that is used in other states of the European Union. Not all transactions are subject to VAT, but in Holland, it is very common to charge this value-added tax. The regular tax rate is 21%, and this rate is charged on (almost) all goods and services by businesses within Holland.
If products are imported from outside of the EU, this VAT rate may … Read more
Dutch corporate income 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 25% 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 … Read more
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… Read more
Tax haven Netherlands
If you would ask a regular Joe in the streets in the Netherlands, he would probably not define the Netherlands as a ‘tax haven’. However, for some companies, the Netherlands was regarded as a tax haven.
The taxation system in the Netherlands focuses on attracting foreign capital, and a great way to do this, is by offering tax-breaks and subsidies. Holland has, for example, double tax agreements with many countries. One of the biggest breaks for many … Read more
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