In Netherlands the branches
and local companies have the same tax treatment according to the Dutch law. However there are some differences, since the branches
don’t have to pay certain taxes
that are mandatory for other types of business forms. Our Dutch accountants
can explain to you what tax obligations apply in your particular case, if you have set up a branch in the Netherlands
Tax regulations for branches in Netherlands
According to the tax rules
in the Netherlands, companies and branches are regarded as equal in terms of the tax rates that they must pay for their profits. As such, if you have extended your foreign company through a branch in the Netherlands
, the tax amount that you will have to pay is of 20% for profit less than 200 000 euros and of 25% for profits larger than this amount.
The Dutch government encourages foreign investors
to open branches
in this country. Therefore, branches
are not due to withholding tax
payment while the resident Dutch companies must still pay 15% as withholding tax.
Tax obligations for branches in Netherlands
allows foreign investors to conduct business activities in the Netherlands, an option that representative offices don’t have. Therefore a branch needs to register with the Chamber of Commerce as well as with the Dutch Tax authorities
are not obliged to pay a Dutch capital registration tax
, even if there is a capital contribution to the branch.
Wage taxes and VAT regime for branches
is the same as for local companies in the Netherlands. The amount will vary according to the nature of the business activities and their volume. Depending on whether you will hire employees and on their number, your branch
might be subject to specific taxes.
Feel free to contact
our Dutch accounting firm
in order to clarify all questions you might have on the tax provisions applying to your branch
in this country and on the implications of employee tax for your company.