Tax Environment

"The Netherlands’ favorable tax structure and relative lack of bureaucratic red tape is critical.” Fritz Meijaard, CFO for EMEA and General Manager for the headquarters office, NetApp

Profitability is your company's first priority. You'll find the Netherlands' corporate tax structure advantageous to achieving your goals.

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.

The Dutch tax system has a number of features that may be very beneficial in international tax planning.

• 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%

• Tax incentive for R&D activities (WBSO)

• Favorable participation exemption regime

• Fiscal unity regime to freely set off profits and losses among group members

• Transfer pricing practice in accordance with OECD Transfer Pricing Guidelines

• The possibility to carry forward losses for nine years and to carry them backward for one year

• Wide tax treaty network 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 foreign employees (30% tax ruling)

• VAT deferment upon importation: no upfront payment of VAT

• Dutch Customs Authorities: practical and pro-active approach

• Dutch Tax Authorities: relationship enhancement by horizontal monitoring

For a detailed description of the highly competitive fiscal climate, please click here for the Why Invest in Holland? tax brochure.