Netherlands

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

29.1%. First 22,689 is taxed at a rate of 24.5%.

   
Tax rate on long-term capital gains Capital gains are included in the normal profit which is taxable at the normal rate of 29% until 22,689 EUR; beyond, the rate of 34.5% is applied. Capital gains realized on sales of titles of participation are tax-exempted under certain conditions.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies
Dividends are subjected to a restraint at the source at the rate of 25% (however, abolition of restraint at the source when the participation is superior to 25% within the framework of mother-daughter scheme).
Companies organisations (fiscal Entity):
For regime admittance: ministerial license, all conditions must be filled.
Taxes affected: corporate tax, VAT (exemption from this tax, if participation superior to 50%). Taxes levying: binding responsibility of all the companies for the payment of the corporate tax and the VAT owned by the group.
   
Tax rate on branches Branches (bikhantoor) are subjected to the corporate tax or the income tax according to their fiscal regime.




Income tax

Fiscal year The fiscal year begins on January 1st and ends on December 31st of the same year.
   
Income tax rate Tax rate schedule 2005:
En euros taux
0 - 16.893 34,4%
16.893 - 30.357 41,95%
30.357 - 51.762 42%
> 51.762 52%

Taxpayers aged 65 or older are taxed at a rate of 16.50% in the first bracket and 24.05% in the second bracket because persons over the age of 65 are no longer required to pay old-age pension (aow) contributions.
The married taxpayers are separately taxable only on their professional incomes. Wealth tax has been abolished.
   



VAT rates

Standard rates 19%
   
Reduced rates 6%



 

Accounting

Introduction
Dutch accounting rules have been existing for more than 3 centuries, the Vereenigde Oostindische Compagnie (VOC) is the first company in the world to have published its accounts.


General accounting principles
Intangible assets include offering costs, research and development capitalized costs, licenses, patents and rights of intellectual property as well as the acquired goodwill.
The goodwill created by the company can not be capitalized.
Physical depreciations.
Financial depreciations.
Stocks.
Provisions for bad debts.
Deferred taxes.
Specific funds.
Sector-based information: the net turnover must be ventilated by sector and geographic zone.
Products and extraordinary costs.
Subsidies of investment.
Results by action.
Cash flows table.

Obligations and publications
The main rules for the publishing of accounts apply to corporations, private companies, cooperatives, mutual insurance companies and general partnerships. These companies have to publish their accounts.
To be published, the annual report must be deposited in the trade register. It includes : financial statements, cash flow statement and additional information.

Certification and auditing
All the companies quoted above have to audit their accounts.

Professionals and representative organizations
There are two organizations of accountants : the Royal NIVRA with about 9600 members and the Nerdelands Organisatie winnowing basket Accountants-Administratieconsulenten (NOVAA) with 4300 members.



Useful links
For further information, please contact the Ministry of Finances of Netherlands.

Last modified in 2006 - ongoing update
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