Netherlands

For details on the specific nature of day to day bookkeeping, payroll and accounting services, the nature and timing of VAT and other returns, please click here.

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In Netherlands there are multiple types of legal entity structures, such as:

  • Besloten Vennootschap (BV) Private Limited Company

  • Naamloze Vennootschap (NV) Public Limited Company

  • Vennootschap Onder Firma (VOF) General Partnership

 

Private Limited Company / BV

BVs are often considered to be the best way for a foreign company to establish a subsidiary in the Netherlands. Shareholders are only liable for their own capital contribution. To start a private company (BV), at least EUR 18,000 in paid-in capital is required. Shares are allocated based on the capital, and for tax purposes, any person owning more than five percent of shares has a "substantial interest" in the company and is liable for taxes on capital gains or dividends paid.

 


Public Limited Company / NV

May be a subsidiary of a foreign company. An NV is owned by shareholders and shares may be traded on the public stock market, though shares are not held in any private person's name. Therefore owners may choose to remain unidentified. NVs may only be formed if it has at least EUR 45,000 in paid-in capital.

 

General Partnership / VOF

General Partnerships have a minimum of two persons who are each personally liable for the responsibilities of the partnership. There is no minimum capital requirement.

On formation of a company a bank account must be maintained.

After the formation the company must register for Corporation tax, VAT and Payroll taxes

 

Corporation Tax:

The current rate for Corporation Tax in Netherlands is 25%. A lower rate of 19% applies to the first income bracket, which consists of taxable income up to EUR 200,000.

The standard rate will be reduced in steps from 25% to 22.55% in 2020 and to 20.5% in 2021. The lower rate will decrease from 19% to 16.5% in 2020, and to 15% in 2021.

 

VAT:

The Dutch VAT regime (btw, omzetbelasting) has three rates: 0%, 9% and 21%. If you do business in other countries from your base in the Netherlands, the 0% VAT rate may apply. The lower VAT rate of 9% applies to a number of products and services, such as food products, medicines and paint and plaster work on homes. For other products and services you will pay the general VAT rate of 21%.

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