Category: Dutch Tax System
Tax breaks for new businesses in the Netherlands
Do you market new innovative products based on your own R&D? Then you may be eligible for the Innovation Box. The Innovation Box reduces corporate tax for profits from innovative activities. As of 2018, an effective tax rate of 7% applies instead of the maximum rate of 25%. The tax authorities implement the Innovation Box. […]
EORI number
How to apply for Dutch EORI number In the Netherlands, economic operators are identified by Customs by their EORI number. In other words, those who have to deal with Customs from a business perspective, for example by preparing a customs export or import declaration for goods, must be known to customs. This also applies to […]
Advice about publishing annual accounts in the Netherlands
If you operate a business in the Netherlands, there is a strong chance that you will need to submit your annual financial accounts with the Dutch Chamber of Commerce (KVK). You must do so if you are responsible for: A public limited company (NV); A private limited company (BV); A mutual insurance association; A cooperative […]
The Netherlands is lowering the corporate tax rate
Did you know that the Netherlands is one of the five countries in Europe that fall within the world's top fifteen corporate tax havens? And did you know that some of the 2021 changes to the corporate tax rates will make it an even more favourable location for companies? Let's look at what the changes […]
A guide to Netherlands anti dividend stripping
On 1 January 2019, the new tax package came into force, including The Netherlands anti dividend stripping legislation. The latter is part of the EU Anti-Tax Avoidance Directive (ATAD 1) and, therefore, applies to all current EU member states. What is dividend stripping? Dividend stripping is a tax avoidance scheme where shares are bought and […]
Is a local Dutch director required?
Is a local Dutch director required to incorporate a Dutch BV? No, it is not a requirement to have a local Dutch director to set up a Dutch BV. In fact, most of our clients are non-Dutch residents. If you are a small or medium company, or you have a clear goal for your Netherlands […]
Income Box 2: Shareholders as Foreign Taxpayers
The income included in Box 2 for foreign taxpayers includes the eligible Dutch income (calculated in the same way as for residents) from local companies, except in cases where the shareholding belongs to an enterprise’s equity. Fiscal partners are subject to special requirements. The income that must be declared in Box 2 includes the capital […]
Fund taxation in Holland
In Holland a professional investor may use various vehicles on the funds market. UCITS (Undertakings for Collective Investments in Transferable Securities) and AIF (Alternative Investment Fund) are the most common vehicles that can be marketed in the European Union. Taxation is among the main considerations in investment fund set-up. In this respect Holland is a […]
Income tax Box 2: Substantial Shareholdings
Tax on income generated by substantial shareholding (Income tax box 2) If a resident of the Netherlands has a “substantial shareholding” (“aanmerkelijk belang”) with respect to an eligible foreign or Dutch corporation, then the income generated by this shareholding needs to be declared in Box No. 2 of the tax return form for personal income. […]
Cooperative compliance and rulings in Holland
A characteristic feature of the tax system in the Netherlands is the option to consider the treatment of particular transactions or operations with the tax authorities in advance. The Tax Administration may give you advanced clearance. The National Tax Authorities can conclude two types of agreements with the taxpayers: an Advance Pricing Agreement (APA) or […]
The Dutch Tax Laws
If you reside in Holland or receive Dutch income, you need to follow the national laws on taxation. As a resident (living in Holland) or non-resident (foreign) taxpayer receiving Dutch income, you will need to pay income tax in Holland. Taxable Dutch income types The Dutch tax laws recognize 3 types of income that are […]
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. Even though all companies residing in Holland are generally liable for CIT on their income generated worldwide, profits originating from an eligible […]
