International Tax

Business Operations in The Netherlands (Portfolio 7250)

  • This Portfolio provides detailed information on the major aspects of the Netherlands taxation of both foreign and domestic businesses.

Description

An extensive discussion of income items excluded from the tax base of corporations is provided, including the participation exemption and the exemption for investment companies. Information is also supplied regarding the Netherlands tax treatment of foreign nationals employed in The Netherlands.

Noteworthy characteristics of Netherlands tax law, such as the ability of foreign businesses to hold advance discussions with the Dutch tax administration concerning the tax consequences of their business operations in The Netherlands, are explained. The Portfolio also considers methods used to allocate the profits and costs of foreign corporations operating in The Netherlands through a permanent establishment.

The various taxes on individuals are discussed. The principal direct tax on individuals, including foreign nationals, is the individual income tax. In addition, individuals are subject to a tax on gifts and legacies, and several minor taxes.

The Netherlands is a member of the European Union, all the Member States of which impose a value added tax. This Portfolio analyzes thoroughly the mechanism of the VAT and explains the Netherlands VAT provisions.

Among the nontax matters covered in this Portfolio are the Netherlands company law, the financial and labor situation in the country, and the social security system.


Table of Contents

Detailed Analysis

I. The Netherlands – The Country, Its People and Its Economy

II. Business in The Netherlands

III. Forms of Doing Business in The Netherlands

IV. Taxation – General Remarks

V. Taxation of Resident Companies

VI. Taxation of Nonresident Corporations

VII. Income Taxation of Resident Individuals

VIII. Nonresident Taxpayers

IX. Other Taxes on Individuals

X. Other Taxes on Companies and Individuals

XI. Avoidance of International Double Taxation

Maarten Van Der Weijden
Maarten Van Der Weijden
Tax Adviser
Loyens & Loeff N.V.
Kees van Raad
Kees van Raad
Tax Adviser
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