Understanding Dutch administrative requirements is crucial if you want to launch a business in The Netherlands. The Netherlands has very minimal red tape, compared to countries such as Belgium, Germany and France. However, in this blog, you may learn about the strict Dutch corporate framework for financial statements, audits and release of the financial accounts.
Requirements to prepare Dutch financial statements
Every Dutch firm is obligated to maintain accounting records that are sufficient to assess the company’s financial situation at any given time. The statutes of the company typically include a reference to this requirement, which is included in Dutch legislation. The financial statements must be kept for seven years.
The information above is applicable to all Dutch companies. A branch is typically not required to produce and submit its own financial statements. Learn more about how to create your Dutch financial statements here.
Dutch accounting rules
In the Netherlands, the accounting rules are incorporated into Dutch laws. For the most part, Dutch Generally Accepted Accounting Principles are based on EU directives.
All corporations and other entities are subject to these accounting principles. Different rules may apply only to stock-registered companies, financial institutions and insurance companies.
Publication requirements
The managing directors must prepare and approve the financial statements within five months of the end of the financial year. The financial statements must be approved by the shareholders two months later. The financial accounts must be made public eight days after being adopted by the shareholders. In the Netherlands, publishing means filing a copy to the Dutch Chamber of Commerce.
The preparation period may be extended by five months. This can be done by a shareholder’s agreement. The deadline for the publication of the financial statements will then be twelve months after the end of the financial year. You can find more details on the publication requirements in The Netherlands here.
2022 Update on corporate taxes in the Netherlands
In the Netherlands, all legal entities are required to pay corporate taxes. Dutch corporate taxes are charged on a ‘national’ level, which means there are no regional taxes, as there are in Germany or the United States and many other countries.
The Dutch corporate tax is charged once you submit your corporate tax return, however, the tax authorities may decide to issue a preliminary tax assessment if a profit is expected based on your tax assessment from the previous book year. This allows you to pay your corporate taxes in advance or in monthly instalments so that you pay less interest (or none at all) when you file your final corporate tax return in the Netherlands.
The Dutch corporate tax rate consists of 2 brackets:
For profits up to € 395,000 → 15% corporate tax rate
For profits above € 395,000 → 25.8 % corporate tax rate
For more information about Dutch corporate taxes and other administrative requirements, please contact us.
You can set off your losses against current or previous years. Starting in 2022, this is possible for losses up to € 1,000,000 and above that for 50 per cent. Previously, there was a 6-year time limit, which has now expired.
Summary of accounting requirements
| Required action | Time frame | Possible extension |
|---|---|---|
| Corporate Structure Renewal (registered office (at Business Center), data collection from bookkeeper (if not Bolder Launch), etc.) | 12 months after the formation of the company | |
| Preparation of the Annual General Meeting, including invitations to all shareholders (as per legal requirements) | Ultimately 12 months after year-end | |
| Adoption of the financial statements by the general meeting | Within two months of the date of preparation | If the above extension is applied, adoption should take place ultimately 12 months after year-end |
| Filing of the financial statements | Within eight days of adoption, but in no event later than two months after the date of preparation (whether the financial statements have been adopted or not) | If the above extension is applied, filing should take place ultimately 12 months after year-end. |
Our Support
Bolder Launch can assist your Dutch business in meeting all (tax) compliance and administrative requirements. If you have any questions about how to handle a particular situation, please contact us.
As your local agent, Bolder Launch still needs you to be informed of any completed filing requirements even if you choose to use a third party to handle your bookkeeping. We can also deal with third-party accountants on your behalf.
