It is mandatory for an entrepreneur who runs a business in Netherlands to register with the Dutch tax authorities and this is the filed where our expert team excels. The registration is done by filling a standard form which may be leaved in our responsibility. The form must contain the following information:
- the address of the business
- the name of the business
- the legal form of the business
- certain details about the incorporator
- the legal form of the company
- the activity of the business
- eligibility to VAT payment – if needed
The Netherlands has two types of taxpayers: resident taxpayers and foreign taxpayers.
The resident taxpayers are:
- individuals (natural persons) living in the Netherlands;
- bodies incorporated under the Dutch law (such as limited companies and private limited companies);
- bodies established under foreign law running a business in the Netherlands.
They have to pay the income tax on their worldwide income in the Netherlands, which means that also on their foreign income. To avoid having to pay double taxation, the Dutch government has tax treaties signed with many countries. When there is a particular country with no tax treaty signed, the provisions laid down in the applicable Decision prevent double taxation.
Foreign taxpayers: both foreign companies and foreign individuals may be subject to tax payment in the Netherlands.
The companies have to pay corporation tax in the Netherlands:
- taxable income from a Dutch company, for example, an enterprise carried on by a permanent establishment situated in the Netherlands;
- taxable income from a substantial interest in a company established in the Netherlands.
The entrepreneurs must declare each year, in the period provided by the law, the net business profit in accordance to the income tax or corporation tax returns. When they are also employers, they must declare the payroll deductions. Each year, entrepreneurs have to declare their net business profit in their income tax or corporation tax returns. As employers, they must also declare all Dutch payroll deductions
. By the VAT returns, the entrepreneurs are obliged to charge and reclaim the VAT, as well as intra-Community supplies. The law provides that it is a particular type of procedure for each tax return.
The companies must submit returns by electronically means for:
- income tax with operating profits;
- corporation tax;
- turnover tax;
- payroll tax.
The entrepreneur has also the obligation to file by electronically means the tax returns relating to intra-Community supplies and first-day notifications. The Tax Authority determines the amount of money a company has to pay or to receive back.
A foreign business which is involved with Dutch VAT
must, in certain situations, register with the Tax and Customs Administration in the Netherlands