As the Dutch tax system can be fairly complicated, there is a wide range of taxation professionals and services in the Netherlands ready to help you.

More often than not, a financial year is the same as a calender year. In some cases, other levies are payable on imported goods – for instance, agricultural products or industrial products – to prevent products coming onto the European market at exceptionally low prices. © 2020 EYGM Limited.

Non-residents can also apply to be treated as residents for tax purposes; in order to gain access to Dutch deductible items. In addition to the national taxes, every resident in the Netherlands must pay local taxes to his/her city council (gemeente).

To stimulate innovation activities, the Netherlands has an innovation box regime that allows for a lower effective tax rate for profits derived from qualifying intangible assets. However, your personal situation, type of work, residency status, and other assets and earnings (particularly from abroad) will affect your position considerably. Earnings up to €68,507 are taxed at 37.35%, while those over that threshold are taxed at 49.5%.

In order to calculate the profit for corporation tax, you must apply more or less the same rules as apply to income tax. Onroerendezaakbelasting (real estate tax) is a property tax in the Netherlands, which is calculated on the deemed rental value of the property. For additional information with respect to this Alert, please contact the following: EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. If you come to live in the Netherlands and you are eligible for the 30% ruling benefit for incoming employees, you can choose the partial non-resident taxpayer status.

If you buy a house or other property, you must also pay a transfer tax (overdrachtsbelasting). They are also subject to different tax rates within the Dutch tax system. It should also be considered whether any situations may be seen as abusive situations for WHT purposes resulting in any (deemed) payments to be subject to WHT. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. The ‘corona-reserve’ must be reversed in 2020. There are 3 different VAT tariffs: 0%, 9%, and 21%.

These changes have come into effect on 1 January 2020. You can find an extensive list of goods and services for this tariff in the link. Lowering of effective tax deduction. The goal is to treat foreign and domestic loss making companies equally, regardless if they are taxpayers for the Dutch corporate income tax. The new proposal aims to accommodate most savers and retail investors within the current Box 3 scheme in the short term. For a large number of tax deductions in Box I, the tax deduction will not be deductible against the highest rate of 49,5%, but to a lower rate that is gradually reduced as follows. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

you may be subject to special tax rules. This is when other aspects of your financial life will be taken into account; such as a mortgage, a partner’s income, savings, investments, tax deductions like healthcare costs, and so on.

The corporate income tax rates (in Dutch) are quoted on the Tax and Customs Administration website. It seems that some EU Member States such as The Netherlands and Germany are lobbying for further postponement to January 1, 2022. you are married, have a registered partnership, or someone is registered at your address – this may affect the tax you have to pay; as well as any tax rebates.

Source tax on intragroup interest and royalties to low tax jurisdictions. Click below to consent to the use of this technology on our website – and don’t worry, we respect your privacy. It is proposed that the tax rate of the landlord levy will be decreased from 0.562% to 0.526%. This option currently does not exist for foreign companies in a comparable position that are not considered taxpayers for the Dutch corporate income tax.

(Deemed) payments/accruals to a hybrid entity, as a result of which the corresponding income is not taxed by any jurisdiction. Please refer to your advisors for specific advice. A percentage of your monthly salary is automatically deducted by the Tax Administration (Belastingdienst). Currently, the tax rate is 26.25%. The amount will be credited to your credit card within a few weeks. You can pay your provisional assessment – or receive the tax refund – into a Dutch or foreign bank account.

The 2020 rates for inheritance tax in the Netherlands are: Read more in our guide to inheritance tax in the Netherlands.

As of 1 January 2020, the City of Amsterdam is asking for a larger contribution from visitors staying the night in hotels or camping sites. You can further reduce the taxable profit if your company has deductible losses. The high corporate income tax rate applies to taxable profits over €200,000. This includes window advertising, advertising on façades, flags, bus and tram shelters, and large menus. A qualifying interest means a decisive influence, often more than 50% of the votes. Personal income tax rates.

If you own land, buildings, or nature reserves in the Netherlands – or if you occupy/use commercial premises – you have to pay water authority tax (waterschapsbelasting) annually.

The rate will likely be 25%. Furthermore, it is likely that the list of taxpayers will be expanded on in the future given the Netherlands' ambitious climate goals. With the advancement of technology, data and analytical capabilities, the Tax Function of the Future will look surprisingly different from today’s.

The parent company holds a qualifying interest in the liquidated company. Since 2019, companies are no longer allowed to use buildings in company use for depreciation in their corporate income tax return, unless these buildings are in the company books for a value that exceeds the Valuation of Immovable Property (WOZ) value. About 30% Ruling.

The salary criteria for the 30% ruling as per January 2020 are as follows: The salary amount does not matter if working with scientific research. Greenhouse horticulture, centralized heating plants for urban areas, electricity plants that do not use industrial waste gasses and some specific building such as hospitals, universities and Schiphol airport are excluded – at least for now. If you live in an EU or EEA Member State, Switzerland, or one of the BES islands (Bonaire, Sint Eustatius, or Saba), you are part of this category. The package contains the following bills: The 2021 Tax Plan package contains additional measures to stimulate economic growth during the coronavirus (COVID-19) pandemic and measures for a better, fairer, and greener tax system. Tourist tax for holiday rentals, bed & breakfasts, and short-stay accommodation will be 10% of the turnover; excluding VAT and tourist tax. Most people can file their tax return online. Residential property that is acquired by an investor or residential property that serves as a second home (e.g. It is proposed to increase the tax-free allowance to € 50,000 per person (previously: € 30,846). This money goes towards municipal improvements. In 2020 this rate is 25%. The WHT is due on accrued, imputed or paid considerations. Read the expectations of PwC experts. The government proposes to restrict the deduction of the liquidation loss.

The Dutch Government will approach the relevant treaty partner to renegotiate and amend the respective treaty. In 2021, it will be lowered, but less than expected. Not every shop does, however the affiliated shops display a sticker on their door indicating they do. The annual salary cost relating to the financing and/or licensing activities of the Dutch company should be at least €100K. Essentially, the greater the visibility of the advertising, the higher the tax.

Stating your income from abroad does not always mean that you have to pay income tax on this in the Netherlands. We have visualised the changes in the box 3 system for you. The Dutch company should have an office space available (leasing or holding in property) for a period of at least 24 months. In the fiscal datacard you will find an overview of tax rates and figures for 2020 and 2021. This applies if you are the legal or beneficial owner of: properties, rights in real estate, or shares in immovable bodies such as buildings. It is proposed to increase the real estate transfer tax rate from 6% to 8%. As such the government measures that have been presented for 2021 are largely aimed at getting our economy through this crisis.

You will receive a final tax notice and, in some cases, get a tax rebate. In the fiscal datacard you will find an overview of tax rates and figures for 2020 and 2021. Certain companies can apply for an exemption to access lower corporate tax rates. So what does this mean? Please see www.pwc.com/structure for further details. We have listed the most important tax measures of the 2021 Tax Plan, so you can see what the impact is on yourself or your organisation. This brings this measure into line with the regulation for buildings used as investment property. A cooperating group of shareholders hold a qualifying interest in both entities.

Income from employment and home. If interest or royalties have accrued and remained outstanding during a calendar year: on 31 December of that year. Since the legislative proposal also includes a reversal of the reduction of the Dutch corporate income tax rate (25% instead of the initial 21.7%), the tax benefit from the innovation box remains substantial.

A 21% Dutch BTW rate, also called the high or general tariff, applies to all other VAT taxable activities; Some goods or services are exempt from BTW (0%), such as international activities.