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The Netherlands has a large network of agreements for avoidance of double taxation providing tax advantages to international investors establishing companies there. Among these agreements is the treaty with the USA. The first convention for the avoidance of double taxation between Holland and the USA was signed in 1992. Its first amendment dates from 1993.

Our local consultants specializing in company establishment can provide you with additional information about the Dutch tax system.

Scope of the double tax treaty

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Holding companies are among the most advantageous business entities in the Netherlands due to the beneficial tax regime they are under. Furthermore, Dutch holdings are globally recognized for the conveniences they offer to both foreign and local shareholders.

Investors should keep in mind that holdings are established in order to gather diverse assets of separate companies under a common umbrella. Our Dutch specialists in company formation are ready to assist international entrepreneurs planning to incorporate local holding companies.

Corporate tax

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Historically, The Netherlands has been known as a European trade centre and as the maritime link between the Old Continent and North and South America, Asia, and Africa. In order to maintain its status, the country has been working to achieve an even better, friendlier business climate and attract international investors. The efforts are paying off, as currently Holland is the EU base of 2100+ companies from North America, and counting. Why is Holland such an attractive country for doing … Read more

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 has decided to support a new policy on taxes proposed by Menno Snel, State Secretary of Finance and to take action with respect to the first priority on the agenda: stop tax evasion and avoidance.

For the coming years, the policy includes 5 priorities:

  1. to stop tax evasion and avoidance;
  2. to reduce the taxes on labour;
  3. to promote a competitive tax climate for real activities in the economy;
  4. to make the system for taxation greener,
  5. and more
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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