The Netherlands was described as a tax haven because of its favourable fiscal climate and many foreign companies choose to open subsidiaries here. Entrepreneurs who open new companies in the Netherlands also benefit from the extensive number of bilateral treaties which ensure the avoidance of double taxation. Apart from the normal benefits, tax minimization is a procedure that uses different investment strategies to minimize the amount of annual taxes that need to be paid.
Tax minimization in the Netherlands is a legal way to reduce the amount of due taxes. The company arranges its investments in such a way to be able to comply with the current legislation and reduce its taxes as much as legally possible. Tax minimization is not illegal tax avoidance. Our lawyers in the Netherlands can help you find the best tax planning and minimization strategies for your company.
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Tax minimization in Holland
There are a number of strategies which can be used in the benefit of your company when paying taxes in the Netherlands. Most Dutch legal entities must register for VAT purposes and, according to the type of activity, companies may need to register an EORI number. Sole traders generally benefit from a lighter tax regime because of the nature of this simple form of business organization. Apart from the usual taxes for companies, investors in the Netherlands can benefit from using some simple but effective cost reducing strategies.
Tax effective investing is a way to plan the existing investments and future ones so that taxation for these types of activities will be lower. Some investments are more tax effective. Our Dutch lawyers can tell you more about growth investments that receive a more favourable tax treatment. If you have active investment loans, paying the loan interest in advance can be a good way to claim tax deductions in the on-going financial year.
Tax planning strategies in the Netherlands
Companies can reduce their taxable income by bringing the tax deductions into the current financial year. Anticipated purchases, even small ones, if made before the deadline of the deduction, can be claimed in the on-going financial year.
In the Netherlands, the tax year is the same as the calendar year and tax returns must be filled by April 1st every year, for the past year. If you want to know more about other taxes for companies in the Netherlands, like the dividend tax, our Dutch lawyers can help you with additional information about the Dutch corporate tax. If you need to know the amount of money you owe in corporate taxes (corporate tax, VAT and dividend tax), we invite you to try our Dutch tax calculator, an easy-to-use tool which will also show you if your home country has concluded a double taxation treaty with the Netherlands.