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Fiscal Climate

A Competitive Fiscal Climate

With a competitive statutory corporate income tax rate in Europe—16.5% on the first €200,000 and 25% for taxable profits exceeding €200,000—the Dutch tax system has a number of attractive features for international companies:

  • A wide network of nearly 100 bilateral tax treaties to avoid double taxation and to provide, in many cases, reduced or no withholding tax on dividends, interest and royalties
  • Clarity and certainty in advance on the tax consequences of proposed major investments in the Netherlands
  • A broad participation exemption (100% exemption for qualifying dividends and capital gains), which is vital for European headquarters
  • An efficient fiscal unity regime, providing tax consolidation for Dutch activities within a corporate group
  • No statutory withholding tax on outgoing interest and royalty payments
  • Favorable expat tax program with a 30% personal tax income advantage for qualified, skilled foreign employees

The Dutch tax ruling practice has a 30-year track record of being fully in line with OECD standards. And thanks to the Netherlands’ stable government and highly accessible and cooperative tax administration, companies can feel confident that any adjustments will be implemented in such a way that maintains attractiveness for foreign investors, minimizes impediments for business and guarantees cooperation and transparency from tax authorities.

Source: OECD 2019, PwC Worldwide Tax Summaries 2019/2020

Source: Deloitte

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