Taxes and Accounting in the Netherlands
- Tax Year
- The fiscal year begins on January 1st and ends on December 31st of the same year.
- Accounting Standards
- The Dutch Generally Accepted Accounting Principles (GAAP) consists out of the International Financial Reporting Standards (IFRS). All Dutch (and European) companies have to comply with these standards. The EU's Accounting Regulatory Committee (ARC) is responsible for checking the reports.
- Accounting Regulation Bodies
Accounting Regulatory Committee
- Accounting Reports
- Financial statements, cash flow statement and additional information.
- Publication Requirements
- Private companies, cooperatives, mutual insurance companies and general partnerships have to publish their accounts.
To be published, the annual report must be deposited in the trade register. Statements must be filled annually.
- Professional Accountancy Bodies
NIVRA , Dutch Institute of Certified Accountants.
NOVAA - Administratieconsulenten , Administration advisers.
- Certification and Auditing
- Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. For more information, you can contact The Netherlands Court of Audit
- Accounting News
Q Accounting (in Dutch)
- Nature of the Tax
- BTW (Belasting Toegevoegde Waarde - the Dutch equivalent of the VAT)
- Tax Rate
- Reduced Tax Rate
- Netherlands apply a reduced VAT rate of 6% on certain categories of goods and services, including foodstuffs, water supplies, pharmaceutical products, medical equipment for disabled persons, books, newspapers, hotel accommodation…
- Other Consumption Taxes
- Liquor tax, tobacco tax, gasoline tax, aviation fuel tax, liquefied petroleum gas tax, petroleum tax, motor vehicle tax, etc.
- Company Tax
- The applicable tax rates and brackets are: up to EUR 40,000 - 20%, EUR 40,000 to EUR 200,000 - 23.5% and income exceeding EUR 200,000 - 25.5%.
- Tax Rate For Foreign Companies
- Resident companies are subject to taxation on their worldwide income, and non-resident companies are subject to corporate income tax on certain Dutch-source income.
- Capital Gains Taxation
- There is no specific tax rate for capital gains but gains and losses are included in the company’s general taxable income.Capital gains are therefore taxed at 25.5% (normal corporate income tax). The basis for calculating a capital gain or loss is the difference between the book value of an asset (original cost minus depreciation) and the amount for which the asset is sold (which under circumstances can be replaced by the fair market value)..
- Main Allowable Deductions and Tax Credit
- Costs incurred in setting up a business, reserves earmarked for certain types of future spending and book profits, rents, royalties and interest payments on corporate debt, remuneration paid to members of the managing and supervisory boards, many types of taxes, bad debts, capital losses, pension plan contributions, commissions, bonuses paid to employees through an internal profit-sharing plan, gifts to contributions to religious, social, charitable and other institutions and mixed expenses.
Foreign tax credits on dividend, interest and royalty income are limited to taxes withheld from income items originating either in a country that has concluded a tax treaty with the Netherlands or certain developing countries listed by the State Secretary of Finance. However, a Dutch company may not credit any foreign withholding tax levied on dividends received from foreign subsidiaries to which the participation exemption applies.For additional information.
- Other Corporate Taxes
- Transfer tax is levied on the acquisition of property in the Netherlands at a rate of 6% of the market value of the property. Insurance tax at a rate of 7% applies on insurance premiums, but life, accident, medical, invalidity, disability, unemployment and transport insurance are exempt.
Motor vehicle tax is paid on all vehicle ownership, with the amount depending on the type and weight of the vehicle and, for private cars, the type of fuel.
In the overseas municipalities of Bonaire, St. Eustatius and Saba (also known as the BES islands), there is no corporate income tax on revenue or profits. Instead, two alternative taxes have been introduced: a tax on real estate (property tax) and a withholding tax on revenue distributions.
|Individual Income Tax||Progressive rate from 33.65% to 52%|
|EUR 0 - 17,319||33.65%|
|EUR 17,319 – 31,122||41.85%|
|EUR 31,122 – 53,064||42%|
|EUR 53,064 and over||52%|
|For persons older than 65, since they are not subject to certain social security contributions||15,75% (Up to EUR 17,579)
23.50% (Between EUR 17,579 - 31,589)
- Allowable Deductions and Tax Credit
- Employer reimbursement of (international) school fees. Tax deductions: interest allowance for mortgage interest related to real property in the Netherlands.
Tax exemptions: an employee subject to the 30% tax ruling (if a resident of the Netherlands) can opt for partial non-resident status, which implies that income (assets/savings) may be tax-exempt in the Netherlands.
- Special Expatriate Tax Regime
- An employee assigned to the Netherlands who has specific expertise that is not available or that is scarce in the Dutch labor market is eligible to apply for a tax-exempt allowance of 30% of his/her salary. A request must be made to apply the 30% ruling within four months of starting employment. Once approved, the allowance applies for a maximum term of ten years, with an interim test to determine whether the expatriate continues to satisfy the conditions to qualify for the 30% ruling. Employees who do not qualify for the 30% ruling still may receive a tax-free reimbursement of actual extra-territorial expenses.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of the conventions signed
- Withholding Taxes
- Withholding taxes are: 15% for dividends. There are not any tax rates on interest and royalties.
- National Organizations
- The Office to voor of Industriële Eigendom Netherlands
- Regional Organizations
- Industrial Property Office, Copyright Office
- International Membership
Member of the
WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
National Regulation and International Agreements
|Type of property and law||Validity||International Agreements Signed|
Patents Act of the Kingdom 1995
|10 years, renewable for further 10-year periods|| Patent Cooperation Treaty (PCT)
Strasbourg agreement Concerning the International Patent Classification
Office of Harmonization for the Internal Market
|10 years, renewable for further 10-year periods|| Trademark law treaty
Protocol relating to the Madrid Agreement
Office of Harmonization for the Internal Market
|It initially has a life of five years from the filing date and can be renewed in blocks of five years up to a maximum of 25 years whereas the UCD grants a right of three years from the date of the first disclosure that must have taken place within EU territory.|
|70 years, but varies a lot depending on the type of product|| Berne convention
Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
|A minimum of 5 and a maximum of 25|
- Independence of Justice
- Justice is free and independent.
- Equal Treatment of Nationals and Foreigners
- Foreigners can expect an impartial trial from the country’s judicial system.
- The Language of Justice
- Dutch and Frisian.
- Recourse to an Interpreter
- Yes, but no guidelines exist to ensure effective communication between judges, lawyers, and non Dutch / Frisian speaking defendants.
- Sources of the Law and Legal Similarities
- Based on the civil law system incorporating French penal theory. The Netherlands accepts compulsory ICJ jurisdiction but with reservations. Holland being a member of the European Union, the national law in the country has needs to comply with the conditions of the Community legislation.
- Checking National Laws Online
All Dutch Laws (Only in Dutch)
- National Standards Organizations
Ministry of Living, Spatial Planning and Environment
European Certification Bureau
- Integration in the International Standards Network
- The Dutch Ministry of Living, Space and the environment participates in the International Standard organization (ISO) the International Electrotechnical Commission (IEC), the International Telecommunication Union, the European Telecommunication Standard Institute (ETSI),the European Committee for Standardization and the European Committee for Electrotechnical Standardization.
- Classification of Standards
- A CE mark is obligatory.
- Online Consultation of Standards
- Available on the European Telecommunication Standard Institute (ETSI), the European Committee for Standardization and the European Committee for Electrotecnical Standardization's websites.
- Certification Organizations
Consultants Europe B.V.
KEMA Quality B.V.
European Certification Bureau Nederland.V.
- General Information
Executiveplanet, The Dutch business culture.
Kwintessential, The Dutch business culture.
- Opening Hours and Days
- Open from Monday to Saturday and from 9.00 to 16.00 or 17.00.
|New Year's Day||1st of January|
|Good Friday (optional; depends on sector/province)||March - April|
|Easter Monday||March - April|
|Queen's Day||30th of April|
|Liberation Day (every 5 years - 2000, 2005, 2010 etc.)||5th of May|
|Whit Monday||May - June|
|Ascension Day||May - June|
|Christmas||25th of December|
|Boxing day||26th of December|
Periods When Companies Usually Close
|Christmas Holiday||From Christmas|
|Crocus/ Carnaval Holiday||1 week in late February / early March|
|Summer Holiday||2/3 weeks in July / August|
|Note||Companies tend to be understaffed during a holiday period.|
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