Corporate tax in the Netherlands
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A Dutch company is subject to 25% corporate tax ("vennootschapsbelasting") on its worldwide profits. Certain items of income, however, are exempt from tax and certain costs are non-deductible.
The worldwide income of a Dutch company is taxable income for Dutch corporate tax purposes. Costs are tax deductible. Thus, a Dutch company is subject to Dutch corporate tax on its worldwide profits.
The 2013 Dutch corporate tax rate is applied at 20% for the taxable amount up to and including EUR 200,000. For the excess taxable amount the rate is 25%.
Certain items of income are exempt from Dutch corporate tax. The most important items of income that are exempt are:
- capital gains and dividends derived from qualifying subsidiaries ("participation exemption");
- income attributable to a foreign business enterprise ("permanent establishment").
Capital gains and dividends derived from a qualifying subsidiary are fully exempt from corporate tax in the Netherlands ("participation exemption"). A subsidiary qualifies for the Dutch participation exemption when:
- the subsidiary is an active company; and
- the Dutch parent company holds an interest of at least 5% in such company.
Income received by a Dutch company from a foreign branch is exempt from Dutch corporate tax provided such branch is a permanent establishment or representative.
In 2009 the White House issued a press release in which the Netherlands were mentioned as tax haven. According to various NGO's the Netherlands "can be seen as an intermediary tax haven for foreign corporations".
- "The Netherlands a tax haven, a misunderstanding?" (in English). Tax Justice nl. Retrieved 21 May 2011.
- "US tax haven claim surprises Dutch" (in English). DutchNews.nl. 5 May 2009. Retrieved 21 May 2011.
- "New tax treaty policy prejudices developing countries" (in English). Centre for Research on Multinational Corporations. 20 April 2011. Retrieved 21 May 2011.
- Michielse, Geerten (24 February 2011). Mag het een beetje minder koopman zijn? (in Dutch). Tijdschrift voor Fiscaal Recht.