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Taxation of LLCs in Netherlands

Taxation of LLCs in Netherlands

The taxation of LLCs in the Netherlands is performed at a territorial level, meaning that companies are taxed according to residence: LLC that are resident companies (have their place of management in the Netherlands) are taxed on their worldwide income.

Our Dutch lawyers present the main types of taxes for this type of company and can give you complete information if you wish to open another business type in the Netherlands.

Taxes for LLC in the Netherlands

The main taxes for limited liability companies in the Netherlands are listed below:

  • corporate income tax: this has a rate of 20% on the first 200,000 EUR of taxable profits and 25% on taxable profits above this value; these rates are expected to be reduced progressively until 2021;
  • withholding tax: a 15% dividend withholding tax applies unless there is an applicable double tax treaty.
  • payroll: LLCs in the Netherlands must withhold the payroll tax on the salary paid to their employees.
  • real property tax: this tax applies on a municipality level and can be deducted by companies.
  • social security: this tax is paid both by the employer and the employee and it is calculated according to gross salary.
  • transfer tax: a 6% tax is payable upon the transfer of property in the Netherlands.

VAT registration in Netherlands is required after a certain threshold. Our tax lawyers can give you more information.

Tax reporting in the Netherlands

Taxpayers are required to submit a provisions assessment in the first month of the financial year. Corporate tax returns for LLCs are filed annually and in some cases, the filing deadline can be extended. Failure to observe the filing requirements results in administrative penalties and criminal penalties apply in case of fraud. The tax revenue authority in the Netherlands is the Belastingdiest. The experts at our Dutch law firm can help you comply with the rules and regulations for reporting according to company type.

When doing business in the Netherlands, investors can choose to hire a professional accounting form for bookkeeping services, tax return filing as well as payroll services.

For more information about doing business in Amsterdam or other cities, please contact our law firm in the Netherlands.