The attractive Netherlands tax climate

For centuries, the Netherlands has been a nation of traders. To ensure that this longstanding tradition endures, the Dutch government has created a competitive tax regime that stimulates entrepreneurship and foreign investment in the Netherlands. Not only the corporate tax rates are lower in relation to most of its European
neighbors, there are also numerous features that make it attractive for foreign companies to locate operations in the Netherlands.

Features of the Dutch tax climate include:

• Relatively low statutory corporate income tax rate of 25% (20% for first 200,000 Euro)
• Possibility of obtaining advance tax rulings from the Dutch tax authorities giving certainty on future tax position
• Innovation box resulting in an effective corporate tax rate of 5% for qualifying profits
• R&D allowance for qualifying R&D wage costs (WBSO)
• Tax deduction facility for R&D operating costs and investments in R&D assets (RDA)
• Favorable participation exemption regime
• Fiscal unity regime providing for a tax consolidation of companies within a group and therefore to freely offsetting profits and losses among group members
• Transfer pricing practice in accordance with OECD Transfer Pricing Guidelines and the possibility to obtain an Advance Pricing Agrement (APA)
• The possibility to carry forward losses for nine years and to carry them backward for one year
• Wide tax treaty network to avoid double taxation and reducing withholding taxes on dividends, interests and royalties (for interest and royalties often to 0%)
• No statutory withholding tax on outgoing interest and royalty payments
• Favorable tax treatment for expats (30% tax ruling)
• VAT deferment upon import: no upfront payment of VAT
• Dutch Tax Authorities: access to the tax inspector
• Dutch Customs Authorities: practical and pro-active approach

Read more details on how your company can benefit in the brochure on the Dutch tax climate below.