When it comes to tax, the Netherlands, like most countries, has its own specific rules and requirements. Overall, the Dutch tax system is efficient, transparent and offers a number of incentives for foreign businesses and employees. Furthermore, the Netherlands has an extensive network of tax treaties in place to prevent double taxation.
At the same time, complying with Dutch tax codes and payment deadlines is essential in avoiding potential complications and sanctions, and having a clear understanding of the local tax obligations is therefore a must.
Which taxes apply to me?
The main taxes in the Netherlands include:
- Corporate income tax
- Wage tax, income tax and social security contributions
- Value Added Tax (VAT); known locally as BTW
- Dividend withholding tax
- Inheritance and gift tax
The Dutch government also imposes a number of municipal taxes and levies, including a real estate tax and a levy for public cleaning for local residents, which are collected by the relevant municipality or registered office. The Netherlands does not apply any source tax on interest and royalty payments.
Registration and payment: the process
Workers officially residing in the Netherlands must register as a taxpayer with the Tax Department in the city where they live (non-residents are also subject to taxation if they derive a certain amount of their income from the Netherlands). Companies must register with their local Chamber of Commerce, which will pass on their details to the national Dutch Tax Department for formal registration.
Once registered, the Tax Department will automatically issue your first tax return, together with a login code and password allowing you to file your return online. Many taxes can be submitted electronically, though it is important to have this process checked by your tax advisor to ensure the amount of tax you have been registered for is correct.
The Netherlands levies taxes based on tax returns and assessments, and the specific payment period depends on the type of tax involved. A tax return is issued in the case of, for example, wage tax, withholding tax and VAT, and must generally be paid on the last day of the month following the closing date of the taxation period.
Tax assessments apply to income tax and corporate income tax, and the final deadline for payment is always stated on the relevant assessment. You will not be able to pay tax before receiving your assessment.
Questions about tax? We can help
At Bol International, our international tax experts have a deep understanding of the Dutch tax system and how it applies to foreign businesses and workers. Depending on your exact needs, we can provide you with tailor-made advice and support, ensuring full compliance with local tax codes and access to potential benefits. Contact us by filling in the form today to see how we can help.
