Corporate Tax in the Netherlands

Corporate Tax in the Netherlands

Updated on Friday 10th September 2021

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Corporate-Tax-in-the-Netherlands.jpgFor any profit in the Netherlands, a company is subject to a corporate tax or in other words, the earned incomes are taxed according to the rules and regulations in this country. If you have a business in the Netherlands, it is best to solicit accounting and financial services from our Dutch team of accountants who has a wide experience in this matter and can explain the information related to the corporate tax. No matter your questions in taxation problems, we are here to offer proper help and complete assistance for your company in the Netherlands.

Details about the corporate tax in the Netherlands

The Netherlands is known as a tax haven country since 1970, although numerous political debates took place several times, most of them ending with significant changes in this matter, where certain taxes where established. The corporate tax rate depends entirely on the taxable amount, for instance, if the profits of a company established in the Netherlands is higher than EUR 200,000, a tax rate of 25% will be applied. As for the entities which register profits less that EUR 200,000 the corporate tax rate is set at 20%. It is good to know that enterprises which deal with research and innovative activities in the Netherlands have reduced corporate tax rates, due to the innovation box protection.
We remind that any details about the corporate tax in the Netherlands can be entirely explained by our Dutch accountants who can also help companies with the requirements for audits in the Netherlands.

Corporate tax exemptions in the Netherlands

The subsidiary companies in the Netherlands share the profits in a form of dividends with the parent enterprises, which is why numerous exemptions are applied, meaning there will be no taxes on these dividends to avoid the double taxation. The main feature of the taxation system in the Netherlands relates with the exceptions applied to holding companies which can be local or from abroad. Moreover, the subsidiaries from outside the Netherlands can participate on an equivalent tax balance with the local entities.
As for the incomes of a Dutch enterprise of a foreign branch, the corporate tax will not be imposed, due to the permanent establishment status. It is good to know that certain foundations or organizations can solicit corporate tax returns if a tax investment is involved.

Tax returns in the Netherlands

The annual corporate income tax returns are applicable to all companies registered in the Netherlands. The enterprises need to file a corporate tax return with the Dutch Tax Authorities which are entitled to distribute an initial income tax valuation in January, every year.
Our accounting firm in the Netherlands can help you in taxation matters for companies in the country, no matter if they have a foreign capital or are registered as Dutch entities, so please do not hesitate to contact us.
If you want to open a company in the country, our team will provide you with tailored services for payroll Netherlands once you start hiring employees.