Which taxes are relevant for your Dutch operations?
Most Dutch businesses are of course subject to taxation. The most commonly known tax for companies is the Dutch corporate income tax, which must be paid within 6 months after the end of the fiscal book year.
However, in some cases, corporate taxes are not relevant. For example, the Dutch Foundation, which can be used as an NGO vehicle, can apply for tax-free status. A similar tax-free status is available for the Dutch Investment Funds. (conditions apply)
In case you run a commercial business, all legal entities pay the same amount of corporate tax in the Netherlands.
You will have to pay tax overall (worldwide) profits of your company. Currently, the corporate tax rate is as follows:
|up to € 200.000||19%|
|> € 200.000||25.8%|
Corporate income tax is only due if your company made a profit on its business activities in The Netherlands. In case your operations are limited in the Netherlands, your margins might also be very limited, or even non-existent. There is no minimum amount of corporate tax that you need to pay in the Netherlands. On the other hand, if you need information on VAT, here is an overview of Dutch VAT.
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Overview of Dutch accounting requirements
If you are planning to set up a new business in the Netherlands, you must consider the government and other rules. Especially if you are acting as Director of a Dutch company, it’s important that your Dutch company complies with such regulations, in order to avoid any personal liabilities.
Some of the most important company matters that you should consider are:
- Timely filing of tax returns
- Acceptance of the Financial Statement during an Annual General Meeting (preparation of a Resolution)
- Timely filing of the Financial Statements at the Chamber of Commerce
- Updating of Chamber of Commerce records and payment of the registration fee
- Cooperation during ‘official’ company visits or tax audits (by the tax authorities or other agencies)
- Use of proper agreements and Dutch invoice requirements
- Etc. etc.
Bolder Launch can inform you, and assist you with such company matters by appointing a dedicated Company Officer and/or an Accountant.[...] Continue reading
Dealing with VAT filing requirements in the Netherlands
It’s very important to discuss with a Dutch accountant on the exact accounting requirements that you need to consider. One of the first questions we often receive from our customers is how VAT registration works in the Netherlands, or even how to file the first VAT Return.
A very important milestone for most new Dutch companies is to obtain a Dutch VAT number and file their first VAT return. A VAT registration number application procedure is based on the European VAT directive.
In this directive, it is stated that countries have to issue a VAT registration number to companies performing taxable activities in that country. In the Netherlands, there is no specific formal procedure for VAT registrations, so the general rules for governmental bodies apply.[...] Continue reading
Dealing with annual audit and tax filing requirements
The most important annual accounting requirements in the Netherlands are:
- Drafting your Financial Statements
- Filing your Corporate Income Tax Return
- Submitting your abbreviated statements to the Chamber of Commerce
By using accounting services in The Netherlands, you don’t have to worry about these formalities, and our Dutch accountants will fully take care of this work. Our Dutch accountants will not only ensure that your company complies with the Dutch accounting regulations, but they will also make sure that you will get good insights into the financial health and situation of your company. Bolder Launch uses the latest accounting software and technologies and provides you with an accounting dashboard that will allow you to get (annual) reports, providing access to all underlying invoices and expenses.[...] Continue reading
Our Dutch accountants have a lot of experience in payroll services, especially concerning expats.
The first step for a Dutch business to employ staff, is to register in the Netherlands as an Employer. Overseas companies can register as an Employer, without the requirement of registering a local legal entity (conditions apply).
Our team can help you apply for the Wage Tax ID, and provide you with payrolling services, for a fixed fee[...] Continue reading
Why Bolder Launch is the best accountant for SME’s entering the Dutch market
Bolder Launch has assisted hundreds of companies to start a Dutch business and has helped them with their accounting requirements. Aside from VAT, Corporate Tax and Payrolling, our accounting team provides efficient services, at fixed fees concerning the following topics:
- Tax Registration, obtain all relevant Tax IDs in The Netherlands
- Tax returns preparation and filing at the Dutch tax authorities
- Basic bookkeeping and accounting services
- Debt monitoring and other accounting reports
- Consolidation, in case of a group structure;
- Forensic accounting & Auditing services
- Payroll Services
- Tax Memos
- Tax advantages for holding companies
- Application of tax rulings or tax opinions from the tax authorities (even for small companies!)
The Netherlands, a competitive tax climate
This chapter within our Launch Guide aims to provide a full explanation of the mechanics of the Dutch tax system, for both corporate bodies and individuals.
The Netherlands has one of the most competitive corporate income tax rates in Europe—15% on the first €395,000 and 25.8% for taxable profits exceeding €395,000. Aside from that, The Netherlands offers a variety of tax incentives:
- A network of over 100 tax treaties to provide, in many cases, reduced or no withholding tax on dividends, interest and royalties
- (Advance) Tax ruling practice
- A broad participation exemption (100% exemption for qualifying dividends and capital gains), which is vital for European headquarters
- An efficient fiscal unity regime, providing tax consolidation for Dutch activities within a corporate group
- No withholding tax on outgoing interest and royalty payments
- Favourable expat tax program
Capital gains tax in The Netherlands
You may have purchased shares in a Dutch company in the past, or you may have started a Dutch company from scratch. In that case, you should consider the capital gains tax in the Netherlands.
In the Netherlands, any gains that you derive from selling your business (in case you owned more than 5% to begin with), are taxed as ‘aanmerkelijk belang’ (capital gains).
The Dutch tax laws make no distinction between paying out dividends and selling your shares at a profit. The tax liability is the same. Similarly, rent income is taxed differently than capital gains on Dutch property.[...] Continue reading