Procedures
Dutch taxation for your company
Your company may be subjected to 4 different taxes:
Corporate tax
Your Dutch company is subjected to Dutch corporate tax on its worldwide profits. The Dutch corporate tax rate for 2009 is applied at 20% for the taxable amount up to and including EUR 200,000. For the excess amount, the Netherlands corporate tax is 25.5%. The proposed rate for 2010 (to date) would be at par with 2009.
On the basis of the Dutch participation exemption, income (i.e. dividend income and capital gains) derived from a qualifying participation is corporate income tax exempt. This is one of the main reasons why international companies come to the Netherlands. Other important tax reasons are the extensive Dutch tax treaty network to avoid double taxation and the possibility to discuss tax issues with the Dutch tax authorities in advance.
Dividend withholding tax
Dividend distributions by a Dutch company to its shareholders could be subject to Dutch dividend withholding tax. The statutory rate amounts to 15%. Depending on your company structure, exemptions may apply or a reduction of the rate could be obtained.
Value Added Tax
Dutch companies are subjected to Dutch VAT when goods and services are supplied in the Netherlands. However, when the activities of your Dutch company are subjected to Dutch VAT, it can also recover the input VAT it pays with respect to taxable activities. For companies with VAT-taxable activities only, VAT is therefore not a cost.
The 2009 normal Dutch VAT rate is 19%. The 2009 Dutch lower VAT rate is 6%.
Payroll tax
Your Dutch company is liable for Dutch payroll tax when it has one or more employees. The Dutch payroll tax is withheld on the wages of the employees of the Dutch company.
Expats with special expertise can obtain a 30% Dutch tax ruling. When it is granted, 30% of the wage of the expat is exempt from Dutch tax. Depending on the way this tax incentive is shared between the employer and the employee, it may cause a substantial reduction of the total costs of labour.
