Tax Services Netherlands

Netherlands Tax System

The Dutch tax system has many favourable systems that makes the country an attractive location for international business activity. The corporate income tax rate is 15% for profits up to €245,000 and 25% for profits above €245,000 as of 2021.

Tax Benefits in the Netherlands

Dutch companies benefit from tax rules, such as:

  • A wide network of nearly 100 double tax treaties to avoid double taxation and to provide reduced or no withholding tax on dividends, interest, and royalties.
  • Advance tax ruling possibilities and advanced pricing agreements from the Dutch Tax Authorities, giving certainty on future tax positions.
  • Participation Exemption (dividends and capital gains on the sale of foreign subsidiaries are exempt from corporate income tax).
  • Fiscal Unity Regime to freely set off profits and losses among group members.
  • No withholding tax on outgoing interest and royalty payments under certain conditions.
  • For companies looking to bring employees from abroad, the 30% ruling allows employers to offer 30% of employee salaries tax-free to compensate for the extra costs that international employees encounter when moving to the Netherlands.
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