Taxes - Netherlands

Updated 07/2009

Legal requirements

Tax issues in the Netherlands are governed by the Ministry of Finance. All Dutch businesses are liable for tax, which is collected in turn by agencies such as the Tax Authority. Click on the link for an overview of business taxation:

Ministry of Finance

Taxation system

Proper accounts are the key basis for a company's tax returns. Tax Authority inspectors visit dozens of businesses each year to check the accounts.

Business taxation
Tax returns and inspections

Direct taxation

The government levies direct taxes on people's income or assets. Examples of direct taxes include:

Income tax
Corporate taxation

Indirect taxation

Indirect taxes are levied by the government on sales transactions, as in the case of value added tax (VAT). Anyone paying indirect tax can therefore pass it on to someone else. Examples of indirect taxation include:

Value added tax (VAT)
Eco-taxes
Excise duty
Customs duty

Special rules apply in the areas of personnel, agriculture, savings and investments, good causes, sport and culture, second-hand goods and the arts.

Special rules

Administrative procedures

Tax return

Each year, entrepreneurs have to declare their net business profit in their income tax or corporation tax returns. As employers, they must also declare all payroll deductions. Moreover, they are responsible for invoicing and reclaiming VAT and intra-Community supplies via their VAT returns. Each type of tax return has its own particularities.

Income tax
Corporate tax

Filing your tax return

Businesses are required to submit returns electronically for the following taxes:

income tax with operating profits;
corporation tax;
turnover tax;
payroll tax.

Tax returns relating to intra-Community supplies and first-day notifications must also be filed electronically. Once the Tax Authority has received the returns it determines the amount a business should pay or receive back.

Electronic tax return

Resources

The Antwoordvoorbedrijven.nl website makes it easier for business owners to access the information provided by the Dutch government. The website shows all the various dos and don'ts on issues such as licences and requirements, laws, regulations, taxes and subsidies.

Government information about taxation

Check also the legislation on this topic in:

Taxes - Netherlands