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Taxation of a Limited Liability Company in Netherlands

Taxation of a Limited Liability Company in Netherlands

With one of the oldest tradition in the capitalist economy, Netherlands provides a very stable and transparent framework for local as well as foreign entrepreneurs. The annual tax rates payed by limited liability companies in Netherlands vary depending on the amount of the gains for that particular year. Our Dutch accountants can help you determine which tax rate is applicable in you case so that you can fill the tax return in time with the tax authorities in Netherlands.

Taxes imposed to limited liability companies in Netherlands

Netherlands is a popular option for investors who want to set up limited liability companies thanks to the abundant incentives offered by the government to entrepreneurs. The tax system is very transparent and simple, a fact which contributes to the business confidence in this country. If you have a limited company in Netherlands you will need to check what rate applies to your enterprise for each of the following taxes:

• –          the corporate tax;

• –          the goods and services tax (GST);

• –          withholding taxes applied to interests, dividends and royalties;

• –          social security contributions;

• –          the real estate tax;

• –          the stamp duty.

Taxes are payed only based on a special form provided by the authorities called tax return. Only by a careful monitoring of the expenses and gains can an entrepreneur determine what is the amount due to payment for each tax. Our Dutch accountants can help you fill your tax return and make sure that your company avoids tax penalties.. 

Tax rates applied to limited liability companies in Netherlands

In Netherlands the corporate tax has a fixed rate of 17%. In certain situation, when a company is in the first years of its functioning, the government offers tax exemptions in order to encourage and stimulate the investment in this country. Moreover, the double taxation treaties signed between the Dutch state and other countries, offer advantageous conditions to foreign companies who invest in Netherlands.

Depending on the industry, limited liability companies in Netherlands will have to pay as well a GST tax at one of the three rates of 0%, 6% and 21%. An important aspect of the taxation system in Netherlands is that the security contributions are medium compared to other rates in the EU, with percentages varying from 7.5% and 17%. The real estate tax depends on the value of the properties and is applied progressively up to 20%.

Feel free to contact our team of accountants in Netherlands in order to profit from their knowledge in matters of taxation in this country. 

Interested business owners can reach out to us for services provided by our payroll company Netherlands.