The Role of Dutch Tax Advisors in Business Success

When you decide to start a company overseas or expand your already existing company, you generally need to take into account that you will need to pay taxes in that country. This is no different in the Netherlands. If you are considered to have a business presence here, the country expects you to contribute to the state’s Treasury. Intercompany Solutions can assist you in all matters tax-related, making sure that you adhere to all Dutch tax laws and regulations. Keep in mind that tax avoidance can have hefty consequences that you should rather avoid. We have covered some tax avoidance measures currently in place in the Netherlands in this article.

Therefore, we offer various types of tax and financial advice to our clients, making sure that you always know if you are adhering to all applicable laws. We can also take care of your periodical tax returns for you, which will save you a lot of time and hassle. This makes it easier for you to focus on your daily business activities, with the assurance that your financial issues are well taken care of. We always work with fixed rates that we discuss with you beforehand and make sure that we deliver exactly what it is you need. If you would like to get to know us and our services, feel free to give us a call anytime. We will happily assist you with all your questions.

What are Dutch tax advisors and what do they do?

Dutch tax advisors (or ‘belastingadviseurs’ in Dutch) are professionals who help individuals and businesses navigate the Netherlands' complex tax system. Their main goal is to make sure clients comply with tax laws while also minimizing the amount of tax they legally need to pay.

Here’s a breakdown of what they typically do:

• Tax filing and compliance: they help prepare and file income tax returns, VAT declarations, and other necessary documents with the Dutch tax authorities (Belastingdienst)
• Tax planning: they offer advice on how to structure finances or a business in a tax-efficient way, like when to pay dividends, how to manage income, or how to deal with international earnings
• International tax advice: especially helpful for expats or Dutch nationals working abroad, they guide clients on how to avoid double taxation and comply with tax treaties
• Legal representation: if the Dutch tax authority audits or challenges your tax return, a tax advisor can represent you and help resolve disputes
• Business setup and advice: For entrepreneurs and freelancers, they can advise on things like choosing between a sole proprietorship (‘eenmanszaak’) or a private limited liability company (Dutch BV), registering with the KvK (Chamber of Commerce), and managing expenses or deductions

In short, they’re your financial GPS through Dutch tax territory, especially useful if you're running your own thing or juggling multiple income streams. So it’s actually almost always necessary to hire one if you are a foreign entrepreneur, just to be on the safe side of taxes.

Why you should always hire an expert to take care of your tax returns

Running a business in the Netherlands as a foreign entrepreneur can be exciting, but it also comes with its fair share of complexity, especially when it comes to taxes. The Dutch tax system is known for being highly regulated and nuanced, and what may seem straightforward at first glance can quickly become difficult to understand. This is precisely why hiring a qualified Dutch tax advisor is not just a luxury, but a wise and often essential investment. One of the biggest reasons to work with a professional is familiarity with Dutch tax law. 

As a foreigner, you may not fully understand the latest tax rules, allowable deductions, or deadlines, which actually change quite frequently. A Dutch tax advisor is not only trained in local tax regulations, but also keeps up to date with policy changes that may directly affect your business. Whether you're dealing with VAT, corporate income tax, or payroll taxes, they know exactly what needs to be filed, when, and how. Another critical benefit is timely and accurate filing. Missing a deadline or submitting an incorrect return can lead to fines, audits, or unnecessary stress. A tax expert will ensure everything is submitted on time and error-free, giving you peace of mind and helping you avoid penalties. Tax advisors also help you save money in the long run. 

They know what deductions you're entitled to and can often identify ways to reduce your taxable income that you might overlook on your own. In some cases, they’ll also spot cross-border tax issues and make sure you're not paying more tax than needed, either in the Netherlands or in your home country. Finally, outsourcing your tax matters means you can focus on growing your business, not decoding tax codes or deciphering Dutch forms. Whether you're just starting out or expanding, having a reliable expert in your corner is a smart move that keeps your finances and your time on track.

The importance of keeping a solid administration as a Dutch entrepreneur

As a business owner in the Netherlands, keeping a well-organized and complete administration isn’t just a good habit; it’s a legal requirement. The Dutch tax authorities expect every entrepreneur to maintain a clear and accurate overview of their financial activities. This includes invoices (both incoming and outgoing), bank statements, contracts, receipts, payroll records (if applicable), and any other documents that support your business transactions. One of the key rules in the Netherlands is the seven-year retention period. This means you are legally required to keep your full business administration for at least seven years, either digitally or on paper. For property-related records, this period may even extend to ten years. 

Failing to do so can lead to serious consequences, such as penalties or challenges in the event of an audit. A clear and good administration is also vital for your own clarity and decision-making. It helps you keep track of your income, expenses, cash flow, and tax obligations. When your books are up-to-date, you’ll know exactly how your business is performing and can respond quickly when something needs attention. Moreover, solid bookkeeping makes it much easier to file correct and timely tax returns (VAT, income tax, corporate tax) and to back up your claims if the tax office ever comes knocking. Whether you do it yourself or hire a professional, a reliable administration system is the backbone of a healthy and compliant business. Below, we will list some of the most common taxes you will come into contact with when doing business in the Netherlands.

A quick overview of Dutch taxes

If you own a Dutch business, you will be subject to paying several types of taxes, depending on the type of business you own and whether you hire employees. For your convenience, we have listed the most common taxes below, so you can become acquainted with the Dutch tax system a bit, and you will know what to expect once you start a Dutch business or establish a subsidiary in the Netherlands.

1. Corporate income tax (CIT)

The Netherlands has a progressive CIT rate. As of 2024, the first €200,000 of taxable profit is taxed at a lower rate, namely 19%, with profits above this threshold taxed at 25.8%. This is actually considered to be a fairly low rate in the entire EU. As for deductions and exemptions, businesses can deduct expenses incurred in running their business, including wages, costs for office supplies, and investments in R&D. Furthermore, the Netherlands offers various international tax treaties that prevent double taxation and allow for favorable tax rates on foreign income, which is beneficial for foreign entrepreneurs setting up businesses there.

2. Value Added Tax (VAT)

Next to corporate income tax, you will obviously also have to deal with VAT in some cases. The standard VAT rate in the Netherlands is 21%. Next to that, there is a reduced rate of 9% and also a rate of 0% for certain products and services, for example, food and medicines. Additionally, there are also some VAT exemptions. Some services, like financial services, insurance and education are VAT-exempt. Please note that VAT registration in the Netherlands might be mandatory. Foreign businesses that are selling goods or services to Dutch customers may need to register for VAT, especially if they exceed the threshold for remote sales. If you want to know whether you need to register for VAT, please feel free to contact us for a consultation on the topic.

3. Dutch income tax

The Dutch income tax system is pretty straightforward. There are taxable income categories that divide taxable income into three "boxes," each with specific rules. These are as follows:

• Box 1: Taxable income from employment, homeownership, and other earnings
• Box 2: Income from substantial shareholdings, which is usually in private companies
• Box 3: Income from savings and investments, taxed based on a deemed rate of return

In Box 1 (employment and homeownership), the tax rates are progressive, with rates ranging from approximately 37% to 49.5%, depending on the amount of income. The rate for taxable income from work and housing is a progressive rate with 2 brackets. You will pay proportionally more tax as your income increases. You will also pay national insurance contributions to your taxable income from work and housing up to and including €38,098. In the year that you reach the AOW age, you will pay according to an adjusted rate.

For Box 2, the rate you pay on your taxable income from substantial interest depends on the level of income in 2025. Up to and including 2023, there was 1 percentage, which was 26.9%. Since 2024, for income up to €67,000, you pay 24.5%. For income above the threshold of €67,000, you pay 33%. For Box 3, on your taxable income from savings and investments, you pay 36%. Also note that you can claim various deductions, such as mortgage interest relief for homeownership, and receive credits for work-related or child-related allowances. Compliance with Dutch income tax laws typically requires filing an annual tax return. For complex situations involving international income or tax residency, professional advice is recommended, which we can help with of course.

4. Payroll taxes and social security contributions

Payroll taxes and contributions are progressive, meaning the more an employee earns, the more they have to contribute. This is the same with income tax, and the same rates apply in this case. You as an employer will need to handle most administrative aspects, which means you have to deduct amounts from employees’ salaries and hand these over to the Dutch tax authorities. The payroll tax and social security contributions category ensures sufficient coverage for things like healthcare, pensions, and unemployment. Understanding Dutch payroll taxes and social security is essential for employers and employees, particularly in international or cross-border relations. If you don’t adhere to these laws and regulations, you can risk many negative consequences. The Netherlands also has tax-free allowances for certain social security schemes, such as child benefits, or tax-free amounts for expats in specific schemes.

5. Dividend tax

In the Netherlands, dividend tax is a withholding tax applied to profits distributed by companies to their shareholders. Generally, this tax is withheld by the company when it pays out dividends and passed on to the Dutch tax authorities. The standard dividend tax rate is 15%, and it applies to both residents and non-residents receiving dividends from Dutch legal entities. For foreign entrepreneurs with a Dutch BV, it’s essential to understand how this tax works and how it interacts with international treaties and Dutch exemptions.

Double taxation relief

If you're a foreign shareholder receiving dividends from a Dutch company, there’s a risk of double taxation, once in the Netherlands (withholding tax) and again in your country of residence. To avoid this, the Netherlands has signed tax treaties with many countries that reduce the dividend withholding rate, or allow you to claim a credit or refund in your home country. The specific relief available depends on the treaty between the Netherlands and your country, so it’s wise to consult a tax advisor familiar with international taxation to avoid paying too much. We can assist you with this, of course.

Exemptions

Under Dutch law, certain situations may qualify for an exemption from dividend tax. For instance, under the EU Parent-Subsidiary Directive, dividend payments between affiliated companies within the EU can be exempt if certain conditions are met (such as a minimum shareholding threshold of 5% and an active business purpose). Dutch law also contains domestic exemptions, especially for corporate shareholders, pension funds, or charities. These exemptions are subject to strict rules and require proper documentation, so careful planning and professional advice are crucial before you make any mistakes and might be accused of tax avoidance.

Filing and payment

Dividend tax must be withheld and paid to the Dutch tax office by the company issuing the dividend. The company is also responsible for filing a Dividend Tax Return (‘Dividendbelastingaangifte’), usually within one month after the dividend is made payable. Keep in mind that proper records must be kept of the shareholders, the amounts paid, and tax withheld. Errors or late filings can result in fines or interest. For entrepreneurs running Dutch companies, it’s important to stay on top of these obligations, especially if dividends are paid to international shareholders.

6. Other relevant taxes

Noteworthy taxes include environmental taxes, such as the Dutch Environmental Tax for emissions and waste, which is significant due to the focus on climate change. Municipal taxes vary by region and may cover property, waste disposal, and other local levies affecting businesses. Capital gains tax applies to the sale of certain assets but is often less relevant for entrepreneurs, as capital gains on business shares might be exempt under the participation exemption, which we explained above.

How can a tax advisor help you?

A qualified Dutch tax advisor can be a lifesaver for entrepreneurs navigating the Dutch tax system. As we discussed above, there are many things to consider and be knowledgeable about when owning a Dutch company, and this includes knowledge about the taxes you need to pay. Below, you will find a short breakdown of the most common (and essential) services tax advisors can typically provide you.

Tax returns and filings

• Preparing and submitting your income tax (‘inkomstenbelasting’) and corporate tax (‘vennootschapsbelasting’) returns
• Filing VAT returns (‘btw-aangifte’) on a monthly, quarterly or annual basis
• Handling payroll taxes (‘loonbelasting’) if you have employees
• Filing dividend tax returns (‘dividendbelasting’) for BVs that distribute profits

Administrative support and bookkeeping

• Setting up and maintaining a compliant financial administration
• Making sure your records meet the 7-year retention rule
• Offering cloud-based bookkeeping tools or integrating with your existing systems
• Ensuring invoices meet all Dutch legal requirements

Strategic tax advice

• Advising on the optimal legal structure (sole proprietorship vs. BV, etc.)
• Offering international tax planning (such as avoiding double taxation)
• Guiding you through the 30% ruling for expats
• Advising on deductibles and allowances to lower your tax burden

Communication with authorities

• Acting as your representative with the Dutch tax authorities
• Handling audits or objections (‘bezwaarschriften’)
• Making sure you never miss deadlines, avoiding fines or interest

Other specialist types of support

• Help with M forms (for migration in or out of the Netherlands)
• Support with real estate tax, inheritance tax, and gift tax
• Advising on pensions, insurance, or private withdrawals from your business

Having a good tax advisor means having more peace of mind and more time to focus on growing your business. Which is why Intercompany Solutions will gladly help you with such matters, making it possible for you to focus on your core business.

Do you need financial advice or help with your Dutch tax returns or business?

Not many entrepreneurs like being involved with tax-related issues. Especially if you operate in foreign countries, since the laws might be very difficult to interpret due to their plurality and the language barrier. That is why we aim to help you out with any issue you might have. Next to that, we offer a wide range of other services that can help your company grow. Intercompany Solutions has assisted hundreds of foreign entrepreneurs from over 50 different nationalities. Our clients range from small one-person startups to multinational corporations and everything in between. Our processes are aimed at foreign entrepreneurs, and, as such, we know the most practical ways to assist you. We do so in the following ways:

• Company establishment in the Netherlands
• Opening of a local bank account
• Application for VAT or EORI number
• Application for a variety of permits
• Application for a visa or start-up permit
• Startup assistance
• Financial services
• Administrative services
• Secretarial services
• Legal assistance
• Tax and financial services
• Media
• General business advice

We are constantly improving our quality standards to continually deliver impeccable services. 

Intercompany Solutions is your trusted Dutch business establishment partner

Need help with your periodical tax return? Or maybe you have questions about double taxation or would like to know whether you qualify for the participation exemption. In all these cases, we are ready to assist you in any way we can. Next to the establishment of Dutch companies for foreign entrepreneurs, we also specialize in legal, financial, and tax advice to help you make your business run smoothly and have the biggest opportunity for actual success. If you would like to know more about our services, feel free to contact us anytime. We will help you out in the best way we possibly can.