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Taxation in Holland

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

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30% Reimbursement Ruling in the Netherlands: FAQ

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

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The Dutch Tax Office (Belastingdienst)

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

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Mandatory VAT Registration in the Netherlands

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 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 of a … Read more

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Holland VAT Rate

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

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Dutch Corporate Income Tax

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

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Everything You Need To Know About The 30% Ruling

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
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Netherlands Tax Haven of Europe

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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Dividend Tax in the Netherlands

The dividend tax Netherlands is a kind of income tax on payments of dividends to the shareholders of companies. The Netherlands tax law has provisions for a fixed rate on dividends. In case the business meets particular criteria, tax exemptions may apply. Our local agents can give you comprehensive information on tax compliance with respect to any Dutch entity.

The maximum rate for a dividend tax Netherlands is 25%. However, companies do not owe dividend taxes if they fulfil certain … Read more

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Corporate Tax in the Netherlands

The Netherlands and its taxation system offer many special benefits to international investors. Corporate taxation in the country varies depending on the taxable profit of businesses: there are two rates determined by the amount of income. Our local lawyers are available to assist you in opening a company and fulfiling the requirements for your full corporate tax compliance in the Netherlands.

 

Corporate taxation in the Netherlands

Any business incorporated in the Netherlands is regarded as a resident company liable … Read more

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