Netherlands Tax Guide

Netherlands

Currency: EURO

Foreign Exchange Control: None

Accounting Principles: IAS/ IFRS/ Dutch GAAP. Financial statements filled annually.

Business Entities: Principally, public and private limited liability companies, partnerships and branches of foreign corporations.

Corporate Taxation

Residence: If management is in the Netherlands or a business is incorporated in the Netherlands.

Basis: Residents taxed on worldwide income; non-residents are only subject to tax on Netherland-source income.

Rate: 20% on the first 200,000 EUR of income, 25% over 200,000 EUR.

Foreign Tax: Unilateral tax credits are granted for tax paid abroad.

Other: Various investment deductions and reliefs available.

Tax Year: Calendar Year

Personal Taxation

Residence: Residents taxed on worldwide income; non-residents only on Netherland-source income. Foreign nationals can opt for limited national taxpayer status and receive certain credits (residency based on factors such as employment, family circumstances etc).

Rate: Enterprise, employment and housing income 5.1% – 52%, substantial interest income 22% – 25%, savings and investment income 30%

Other: Inheritance tax: 10%- 40%

Capital gains: Progressive tax up to 25%

Real property: variable rates depending on the municipality.

Capital acquisitions tax: 6% applies to real estate when purchasing property. 2% rate applies to residential homes.

Landlords tax for those who rent out ten or more homes.

Social security: Payable by employees and employers.

VAT: Standard rate 21%

Member Firm: 216 Accountants B.V.

Email:
Huseyin Goksu: goksu.huseyin@216.nl
Vincent de Jong: dejong.vincent@216.nl