1. The corporate tax
The corporate income tax in the Netherlands is 20% on the first 200,000 EUR and 25% on taxable profits exceeding this amount.
2. The personal income tax
Personal income tax applies on worldwide income for Dutch residents and only on Dutch-source income for non-residents. There are three types of taxation boxes with progressive rates, for various types of individual income.
3. Social security contributions
Social security contributions are payable both by the employer and the employee. The applicable tax rates are equal to the income tax rates. These contributions are calculated on gross salary.
4. The 30% ruling
The 30% ruling is a free allowance for extraterritorial costs for foreign employees in the Netherlands. The employee must meet several eligibility criteria in order for the ruling to apply.
5. The Value Added Tax
Value Added Tax is imposed on the supply of goods and services and the standard rate is 21%. A lower rate of 6% applies for certain goods and services.
6. Accounting requirements
Companies incorporated in the Netherlands must observe the Dutch accounting procedures and rules. The Dutch Generally Accepted Accounting Principles are based on EU directives. Companies must issue an annual balance sheet, a profit and loss account and their specific supporting documentation.
7. Audit in the Netherlands
An annual audit in the Netherlands is mandatory for medium-sized and large companies. The annual audit report must be performed by an independent qualified and accredited auditor.
8. Annual filing
The tax year in the Netherlands is generally the same as the calendar year. Another tax year may be used by the company if so provided in its Articles of Association. For individuals the tax return must usually be filed until April 1 the next year.
9. Withholding taxes
The Netherlands does not impose withholding taxes on interest or royalties. Dividends can also be exempt from taxation under certain criteria; otherwise they are taxed at a 15% rate.
10. Double tax treaties
The Netherlands has signed double tax treaties with more than 95 countries worldwide. These agreements protect foreign investors from a particular country with which the treaty was signed from taxation in both countries.
The experts at our Dutch accounting firm can help you with detailed answers to any questions involving the taxation principles for companies and individuals. Please contact us for a complete list of our accounting services.