Netherlands: Business Environment
Exports of goods, intra-Community supplies of goods, and supplies to ships and aircraft used for international transportation are zero-rated.
With regard to goodwill, the amortisation for tax purposes is limited to 10% of the purchase price per annum, and the tax depreciation of other fixed assets (i.e. inventory, equipment) is limited to 20% of the purchase price or production costs each year.
Capital losses are deductible unless attributable to the disposal of a shareholding qualifying for the participation exemption. Tax losses can be carried forward up to six years and back for one year. For losses incurred in fiscal year 2020 as a result of the COVID-19 pandemic, companies may create a reserve with respect to their 2019 corporate income tax return. The losses may not exceed the total losses expected for 2020 or exceed the profits for 2019 (prior to the reserve), and the reserve must be released with respect to the 2020 corporate income tax return.
From 2021, a unilateral air passenger tax is imposed by airport operators. The rate is EUR 7.845 for each passenger departing from a Dutch airport (an exemption applies to transfer passengers and children under the age of two). Moreover, a national CO₂ levy applies to industrial production and waste incineration.
Municipalities levy an additional annual real estate tax at varying rates, which is deductible for corporate tax purposes.
The total aggregate rate for social security contributions is 27.65%, calculated on the first EUR 35,129 of each employee’s gross salary (2021).
Companies annually bringing 50,000 or more kilograms of packing material on the market must pay a ‘waste management contribution’ (rates vary according to various parameters).
Netherlands | OECD | United States | Germany | |
Number of Payments of Taxes per Year | 9.0 | 10.1 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 119.0 | 163.6 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 41.2 | 41.6 | 36.6 | 48.8 |
Source: Doing Business, Latest available data.
Box 1 - Home ownership and Employment Income | Tax Rate (2021) |
EUR 0 - 35,129 | 9.45% |
EUR 35,129 – 68,507 | 37.1% |
EUR 68,507 and over | 49.5% |
Box 2 - Enterprise Income | 26.9% |
Box 3 - Savings and Investment Income | 31% |
Under the work-related cost scheme, the employer may reimburse expenses tax-free, up to 1.7% for the first EUR 400,000 of the total fiscal wages and 1.2% on the excess part. If the 1.2% budget is exceeded, the employer has to pay wage tax in the form of a final levy of 80% on the amount in excess of the budget.
Personal deductions include: alimonies, charitable contributions, education expenses, medical and disability expenses, life annuity premiums, mortgage interest payments related to the primary residence.
Find out more about Taxes and Accounting in the Netherlands on GlobalTrade.net, the Directory for International Trade Service Providers.
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Latest Update: June 2022