HomePage Contact Us About Us Advertise with us
Custom Search

Netherlands Tax and Dutch Tax Laws













Netherlands Tax Rates 2016

Last partial update, June 2016.

Income taxes in the Netherlands

In the Netherlands there are basically two income taxes:

(i) Corporate tax; and
(ii) Personal income tax.




Companies are subject to Dutch corporate tax and individuals are subject to Dutch personal income tax.

Dutch Corporate Tax

Rate

The 2016 Dutch corporate tax rate is 20% for annual income of up to EUR 200,000 and 25% for income exceeding this ceiling.

Taxable profits

The worldwide profits of a Dutch company are subject to Dutch corporate tax. However, certain items of income (such as income from qualifying subsidiaries) are exempt from tax.

Participation exemption

Capital gains and dividends derived from a qualifying subsidiary are fully exempt from Dutch corporate tax on the basis of the Dutch participation exemption. A subsidiary in general qualifies for the Dutch participation exemption when (i) the subsidiary is an active company and (ii) the Dutch parent company holds an interest of at least 5% in the subsidiary.


Tax group

A tax group ("fiscal unity") can be formed in the Netherlands when (i) a Dutch company holds 95% or more of the shares in another Dutch company, and (ii) the financial years of the companies are the same.

Losses carry forward and back

For Dutch corporate tax purposes, tax losses can be carried back to profits of the first preceding year and carried forward to profits of the following nine years.

Tax return

Corporate tax returns need to be filed in the Netherlands within 5 months after the end of a financial year (an extension can be requested).

Tax payment

Dutch corporate tax is paid during the financial year on the basis of an estimate. After the financial year, the exact final tax due is determined on the basis of the corporate tax return.

Dutch Personal Income Tax

Rate

The 2016 Dutch personal income tax rate is max. 52%.
In general personal income tax in the Netherlands is classified by 3 categories, or "boxes".
Box 1 relates mainly to employment and business income.
Box 2 relates to income from a limited liability company with shareholding of 5% or more in the company.
Box 3 relates to income from savings and investments.


Netherlands Personal Tax Rates 2016 (box 1):

Income (EUR) Tax Rate
1-19,922 8.40
19,923-33,715 12.25
33,716-66,421 42
66,422 and over 52


Note: the first two rates in the table do not include national insurance of 28.15%.

Tax Rates for Box 2 and Box 3

Income classified in box 2 is taxed at a flat rate of 25%.
Income classified in box 3 is taxed at a flat 30% rate.


Taxable income

The income an individual receives is subject to Dutch personal income tax.
Any Dutch payroll tax already withheld on the income will reduce the amount of Dutch personal income tax payable.


Tax reductions

There are a number of tax reductions available. For example there is a tax reduction available when you live and work in the Netherlands or when you are conducting a study/training.

Tax return

Dutch personal income tax returns need to be filed in the Netherlands within 3 months after a calendar year (an extension can be requested).

Tax payment

Dutch personal income tax is paid during the calendar year on the basis of an estimate. After the calendar year, the exact final tax due is determined on the basis of the personal income tax return.


Tax Withholding Rates

The Dutch tax withholding rates for payments to non-residents are as follows:
Dividends- 15%
Interest- 0%
Royalties- 0%
Technical Services-0%
Branch Remittance Tax-0%
Note: the withholding rates are subject to double tax treaties when relevant.


Dutch Preference Shares Classified As Loans

When providing finance, it is important to determine under which conditions it is given so that the financing also gets the desired classification for tax purposes. The qualification of the finance in the financial statements was for the court in this case an indication that it was also a loan for tax purposes.

(Previous 2009 update by Balthazar Netherlands Tax Consultants, www.netherlandstax.com)













Austria Income Taxes and Tax Laws | Brazil Income Taxes and Tax Laws | Bulgaria Income Taxes and Tax Laws | BVI Income Taxes and Tax Laws | Canada Income Taxes and Tax Laws | China Income Taxes and Tax Laws | Croatia Income Taxes and Tax Laws | Cyprus Income Taxes and Tax Laws | Czech R. Income Taxes and Tax Laws | Estonia Income Taxes and Tax Laws | Finland Income Taxes and Tax Laws | France Income Taxes and Tax Laws | Germany Income Taxes and Tax Laws | Greece Income Taxes and Tax Laws | Hong Kong Income Taxes and Tax Laws | Hungary Income Taxes and Tax Laws | India Income Taxes and Tax Laws | Iran Income Taxes and Tax Laws | Ireland Income Taxes and Tax Laws | Israel Income Taxes and Tax Laws | Italy Income Taxes and Tax Laws | Japan Income Taxes and Tax Laws | Latvia Income Taxes and Tax Laws | Lithuania Income Taxes and Tax Laws | Malta Income Taxes and Tax Laws | Mexico Income Taxes and Tax Laws | Montenegro Income Taxes and Tax Laws | Netherlands Income Taxes and Tax Laws | Poland Income Taxes and Tax Laws | Portugal Income Taxes and Tax Laws | Romania Income Taxes and Tax Laws | Russia Income Taxes and Tax Laws | Serbia Income Taxes and Tax Laws | Slovakia Income Taxes and Tax Laws | Slovenia Income Taxes and Tax Laws | Spain Income Taxes and Tax Laws | Singapore Income Taxes and Tax Laws | Tunisia Income Taxes and Tax Laws | Turkey Income Taxes and Tax Laws | U.K. Income Taxes and Tax Laws | Ukraine Income Taxes and Tax Laws | U.S.A. Income Taxes and Tax Laws



Go Back

© All copyrights reserved

Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
Please read our terms of service before entering this site.

Homepage | Security Policy | Terms of Service