Accounting and legal

Accounting and tax

    Legal and tax obligations in Netherlands

  1. Corporate tax is levied at a rate of 25%. A reduced corporate tax rate of 20% applies on profits up to €200,000. Furthermore, Netherlands corporate income tax returns must be filed every year. Late filings will result in penalties of up to €5,000;
  2. Capital gains tax is levied at a rate of 25% and are exempt if less than 50% of the assets are passive;
  3. The Netherlands dividend withholding tax is levied at 15%;
  4. In accordance with Netherlands Law, all Netherlands companies must register for corporate tax and VAT at the Netherlands Tax and Customs Administration. The standard VAT rate in the Netherlands is 25% and returns must be filed quarterly;
  5. Dividends received from a foreign entity will be tax-exempt if i) the Netherlands company owns at least 5% stake in the foreign entity ii) less than 50% of the assets of the subsidiary consist of passive assets;
  6. Royalty payments and interest payments to a resident business entity are tax-exempt;
  7. Employers are required to make social security contributions of 31% on all salaries;
  8. A Dutch resident company suffers a payroll tax of 16%. This tax consist of i) wage tax ii) social insurance contributions and iii) health insurance contributions;
  9. Property in the Netherlands is taxed annually at a rate of 6% of their rental value. A 6% transfer tax will also apply when a firm acquires a property;
  10. The Netherlands charges the following environmental taxes i) Mains water tax of € 0.33 per m3 ii) fuel tax € 0.684 per litre iii) Waste tax of € 17 per 1,000 kg of landfill;
  11. The Netherlands has signed DTAs with 100 countries including Australia, China, India, Germany, Singapore, USA and UK to reduce withholding taxes on foreign payments;
  12. Tax audits on companies happen randomly. Firms can expect a tax audit every 5 years;
  13. Finally, Healy Consultants will assist the Client with i) documenting and implementing accounting procedures ii) Implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
  14. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Legal and compliance

  1. According to the Netherlands company law, a resident company must have at least one director and one shareholder of any nationality;
  2. It is not mandatory for a Netherlands limited liability company to have a director ordinarily resident in Netherlands. However, Dutch limited liability companies without a majority of EU resident directors will not benefit from Netherlands’ Double Taxation Avoidance (DTA) treaties;
  3. It is mandatory to have a resident secretary when incorporating a Dutch company. Healy Consultants will be pleased to provide this service for our Clients;
  4. A Netherlands resident company secretary, and a local registered address are mandatory;
  5. Financial Statements must be filed with the Dutch Chamber of Commerce and made publically available in the Dutch trade Register;
  6. In Netherlands, employers are required to provide mandatory occupational accident insurance and health insurance;
  7. Companies will be subject to an audit if i) total assets are more than €4.40 million or ii) turnover over is more than €8.80 million or iii) if the company employees is more than 50 people;
  8. Employees are entitled to 4 weeks paid leave per year, and standard office hours are not allowed to exceed 60 hours a week without overtime pay;
  9. There are no exchange controls imposed on repatriation of funds to a non-resident business;
  10. In order to terminate an employee, businesses need to i) request permission from the Employee insurance agency (UWV) and ii) provide evidence for reason of termination and iii) severance pay decided by the court;
  11. For a company with 50 employees or more, it is mandatory for firms to create a work council elected by staff members to communicate with management about legal issues and company decisions;
  12. Dutch law does not allow employers to discriminate against their employees on grounds of i) gender ii) race iii) nationality and iv) disability.

Contact us

For additional information on our accounting and legal services in Netherlands, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon
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