Corporate Tax in the Netherlands: A Guide for Companies

When setting up a business in the Netherlands, it is important to know the corporate tax you will have to pay on your company’s profits.

This guide on corporate tax in the Netherlands contains the following advice:

Dutch corporate tax system

The Netherlands has a variety of structures available for entrepreneurs, partnerships and businesses, all of which are subject to their own tax laws.

of Dutch tax system managed by belastodienst (Dutch Tax Authority), part of the Ministry of Finance.

The Dutch corporate tax rate has declined in recent years and will continue to do so. The Dutch government plans to raise the corporate tax rate reduction threshold from €245,000 to €395,000 in 2022.

Who pays corporate tax in the Netherlands?

Dutch public and private companies must pay taxes on their profits. Whether you have to pay income tax (Incom Stenbel Sting) or corporate tax (vennootschaps belasting Also VPB) depends on Industry you run

Tax authorities will tell you which taxes you are liable to pay when you register your company. Kamel van Coupander (chamber of commerce).

Corporate tax for sole proprietors

Sole proprietorship (Einmanzac or ZZP, zelfstandige zonder personeel) in the Netherlands you have to pay Dutch income tax rather than a corporate tax on their profits.

Taxes are charged based on the tax rates in Box 1 (Taxable Income from Employment and Homeownership). The rate you pay depends on how much you earn. Profits up to €69,398 are taxed at 37.07% and income above that is taxed at 49.5%.

self-employed entrepreneurs sole proprietor allowance and other entrepreneurial benefits. In 2022, those who qualify will be able to deduct her €6,310 from profits when filing tax returns. This deduction will gradually decrease between now and his 2036 to €3,240.

For more information on taxes for sole proprietorships, see the following guides: Dutch freelance tax.

Corporate tax on partnerships

In a partnership, each partner pays income tax at the above rates on their share of the profits.

public partnership (Marchup) and commercial partnerships (vennootschap onderfirma Also VOF), the partner is considered an individual self-employed person. As a result, you may be eligible for benefits such as entrepreneurial allowances.

The system is slightly different for limited partnerships (Omanditaire vennootschap Also resume)A limited partnership consists of a managing partner and a limited partner. If you are a managing partner, you may pay income tax and claim an entrepreneurial allowance on your share of profits. Limited Partners are not considered entrepreneurs and are not eligible for these benefits.

Corporation tax for a limited company

If you set up a limited company in the Netherlands (besloten venoostschaap Also BV), usually have to pay corporate tax on their profits.

A limited company is eligible for several benefits such as an investment allowance. However, these businesses are not eligible for the private business owner exemption.

You are considered a director and major shareholder of a company if you own at least 5% of the company’s shares. This means that if you receive a salary from a company, you will have to pay Dutch income tax.

Dutch corporate tax rate

How much your company needs to pay in corporate tax depends on its taxable amount. This is the final profit figure on your tax return after deducting allowances and credits.

In 2022, a taxable amount of up to €395,000 will be taxed at a rate of 15% (up from the limit of €245,000 in 2021). Amounts above this threshold are taxed at the rate of 25.8%.

Dutch corporate tax exemptions and deductions

Dutch exemption

Some types of companies in the Netherlands are exempt from corporate tax.foundations and associations no need to pay Corporate tax if one of the following two rules applies:

  • Your taxable income for the year does not exceed EUR 15,000.
  • The taxable profit exceeds €15,000, but when added to the profits of the last four years, the total does not exceed €75,000.

If you qualify for one of these exemptions, tax authorities should apply it automatically and provide a zero valuation.

dutch credit

innovation box

Reduced corporate tax rates are available for businesses whose jobs fit in the innovation box. The Innovation Box provides tax relief for companies conducting innovative research. If your business qualifies, it will pay corporate tax at the 9% rate in 2022.

new business tax credit

If you start a business in the Netherlands, you may be eligible to claim the new company tax exemption (starter afterrec). This relief is entrepreneur allowance.

Offset loss

When filing corporate tax returns, businesses can offset losses against future profits. A company whose profits exceed his €1 million can only offset his 50% of profits exceeding this amount against losses in the previous year.

Businesses are no longer able to offset the depreciation expense of buildings they use when filing their tax returns.

INVESTMENT AND ENVIRONMENTAL CREDITS

Some companies can claim deductions for small investments and investments in energy efficient environmental assets. The eligibility rules for these credits can be complex, for more information see Guide from PwC.

Dutch VAT

Dutch companies must sign up for a value added tax called BTW (Belasting Toegevoegde Waarde).

By the way, it applies when you sell or buy goods or services. Fees vary depending on the type of product or service.

  • The standard 21% BTW rate applies to most taxable activities.
  • A low tariff of 9% applies to the sale of goods such as food, beverages, agriculture, books and medicines. For a complete list, see his Dutch government website. product When service It has the advantage of lower tariffs.
  • A few product When service Goods supplied from the Netherlands to other countries in the European Union are exempt from BTW.

Your business can file VAT returns monthly, quarterly or annually. Self-employed people can apply for the Small Business Regulation (kleine ondanemer reggering), which reduces the amount of VAT you have to pay. However, this option is not available for those who run a limited company.

Dutch corporate tax year

Corporate tax is based on profits for 12 months. Normally the corporate tax year runs along his January 1st to December 31st calendar year, but a company may instead use a split fiscal year (e.g. May to April) to file its taxes. You can choose to

How to file a corporate tax return in the Netherlands

At the beginning of the company’s fiscal year, we receive a preliminary corporate tax assessment from the tax authorities. This is usually based on the returns you have filed in the last few years. If you think your profit will go up or down, or if you disagree with the assessment, you can: demand adaptation.

If your company’s fiscal year is the same as the calendar year, you must file your corporate tax return by June 1st. There are three ways to file your tax return in the Netherlands:

  • By submitting a return to Tax authority website (Dutch). You must provide your login information for this website when you first register your company.
  • Use a third party accounting program.
  • Use an accountant, payroll administrator, or tax consultant.

log in online or filling out the form Then take it to the nearest tax office. Belastingdienst must reply to your request within 3 weeks, the standard extension period he is 5 months.

Other types of business tax in the Netherlands

dividend tax

Companies that pay profits as dividends to shareholders must pay dividend tax at the rate of 15%. This tax is deducted from the money paid to shareholders and can be deducted when filing income and corporate tax returns. For more information, Dutch government website.

environmental tax

Companies may be liable for various environmental taxes, depending on the nature of their business. These include taxes on mains water, energy taxes, waste disposal charges, and coal taxes. Belastingdienst says: List of environmental tax rates (Dutch).

Dutch corporate tax fines

If you do not pay your corporate tax invoice by the due date, you will have to pay late interest from the day after the due date.

Late payment interest is typically 4%. Learn more about how interest accrues. Tax authority website (Dutch).

Self-employed persons who fail to pay their income tax on time will be fined 3% of the unpaid amount. If you file your tax return late, you will also have to pay an administration fee of EUR 65.

Dutch Corporate Tax Advice

If you have any questions about your tax liability in the Netherlands, we recommend that you seek advice from an English-speaking accountant or financial advisor. A good advisor can explain everything from choosing the right type of business structure to filing corporate tax and her VAT returns.

It’s also worth checking out local expat groups on social media for quality recommendations.

If you’re a freelancer or self-employed, you’ll find various resources at: Dutch government website.

helpful resources

https://www.expatica.com/nl/finance/taxes/corporate-tax-netherlands-139609/ Corporate Tax in the Netherlands: A Guide for Companies

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