Corporate tax in the Netherlands

A Dutch company is subject to 25.5% corporate tax ("vennootschapsbelasting") on its worldwide profits. Certain items of income, however, are exempt from tax and certain costs are non-deductible.

Contents

Worldwide profits

The worldwide income of a Dutch company is taxable income for Dutch corporate tax purposes. Costs are tax deductible. Thus, a Dutch company is subject to Dutch corporate tax on its worldwide profits.

Rate

The 2011 Dutch corporate tax rate is applied at 20% for the taxable amount up to and including EUR 200,000. For the excess taxable amount the rate is 25.0%.

Exemptions

Certain items of income are exempt from Dutch corporate tax. The most important items of income that are exempt are:

Participation exemption

Capital gains and dividends derived from a qualifying subsidiary are fully exempt from corporate tax in the Netherlands ("participation exemption"). A subsidiary qualifies for the Dutch participation exemption when:

Foreign Branch

Income received by a Dutch company from a foreign branch is exempt from Dutch corporate tax provided such branch is a permanent establishment or representative.

Tax haven

In 2009 the White House issued a press release in which The Netherlands were mentioned as tax haven.[1][2] According to various NGO's the Netherlands "can be seen as an intermediary tax haven for foreign corporations".[3][4]

See also

References

  1. ^ "The Netherlands a tax haven, a misunderstanding?" (in English). Tax Justice nl. http://www.taxjustice.nl/?nid=62060. Retrieved 21 May 2011. 
  2. ^ "US tax haven claim surprises Dutch" (in English). DutchNews.nl. 5 May 2009. http://www.dutchnews.nl/news/archives/2009/05/us_tax_haven_claim_surprises_d.php. Retrieved 21 May 2011. 
  3. ^ "New tax treaty policy prejudices developing countries" (in English). Centre for Research on Multinational Corporations. 20 April 2011. http://somo.nl/news-en/new-tax-treaty-policy-prejudices-developing-countries/. Retrieved 21 May 2011. 
  4. ^ Michielse, Geerten (24 February 2011) (in Dutch). Mag het een beetje minder koopman zijn?. Tijdschrift voor Fiscaal Recht. http://www.michielse.com/files/NTFR_2011-379.pdf. 

External links