In the Netherlands is the corporate tax levied on companies established in the Netherlands (resident taxpayers) and on certain companies that are not established in the Netherlands but which do derive Dutch income (non-resident taxpayer). Whether a company is deemed for tax purposes to be established in the Netherlands is assessed on the basis of the factual circumstances. Under the corporate income tax all companies incorporated under Dutch law are regarded as being established in the Netherlands.
Taxable period and tax base
In the Netherlands is taxable period the calendar year, the tax year ends also on December 31. The basis of taxation is the income earned by the corporation during the calendar year. Provisions of corporation tax law must be taken into account. Losses may be offset against income in the preceding year and the following nine calendar years.
Tax rate
The taxable income is equal to the difference between gross profit and costs and deductible expenses. The gross operating profit is made by the difference between sales and costs.
• In 2008 is the standard corporate tax in Netherlands 25.5 % (in 2005 was 34.4 %)
• For the small company with profit from 40 000 EUR to 160 000 EUR is the tax rate 23 %
• For the small company with profit to 40 000 EUR is the tax rate 20 %
Exemption
All benefits gained from shareholdings are exempt under the participation exemption, in order to avoid double taxation, when the profits of a subsidiary are distributed to its parent company. Participation is regarded to exist, if the taxpayer holds at least 5 % of the nominal paid-up capital of a company of which the capital is partially or wholly divided into shares. Exempt returns also cover the profit realized on the sale of participation.
Bc. Petr Gola
