General structure

The Dutch tax system is based on the following main taxes:

  • Corporate income tax
  • Personal income tax
  • Payroll tax
  • Dividend withholding tax
  • Value Added Tax
  • Real estate transfer tax

This Dutch section provides a description of these taxes. Also, double taxation relief is mentioned. Finally, Dutch tax compliance is addressed.

The Netherlands has many pro business tax incentives for foreign companies establishing business operations in the Netherlands or Europe. These tax incentives have made the Netherlands to one of the most popular Holding countries. Dutch tax incentives include for instance:

  • A generous holding company regime including a tax exemption on capital gains derived from the disposal of certain share capital participations and a tax exemption on dividends from qualifying shareholdings;
  • An extensive double tax treaty network; and
  • A 30% cost allowance for expats