Category: 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 […]
Move your business to the Netherlands to avoid Brexit drawbacks
Have you been thinking about starting a company? But has the whole Brexit situation left you confused and a bit unmotivated? Don’t worry; you are not the only one. Many start-ups as well as already existing business owners in the UK are contemplating their next move, figuratively as well as literally speaking. Most business owners […]
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 […]
Establish a Joint Venture in Holland
In Holland, a joint venture is an agreement between at least two companies to unite resources in order to pursue a common commercial goal. Each company keeps its identity and carries liability for the losses and profits of the venture. The investors involved in the creation of a Dutch joint venture first have to establish […]
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 […]
Open a Liaison Office in the Netherlands
International companies that do not reside in Holland can advertise their business interests and establish a presence in the country by opening a representative (liaison) office. According to the national law liaison offices are not classified as legal entities, since they do not function and exist independently; they are fully subordinated to and dependent on […]
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 […]
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 […]
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 […]
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 […]
