Taxation in the Netherlands (Holland)

Tax system

All companies must pay income tax at a rate of 20% if the profit is up to 200,000 EUR euros, and at a rate of 25% if the profit exceeds this amount.

Dividends, whether paid to a resident or non-resident, are subject to a 15% withholding tax. Additionally, a reduction in the rate can be provided with the help of double tax treaties. A resident shareholder may offset this withholding tax against corporate or personal tax liabilities. For non-resident shareholders, withholding tax is the final tax.

Despite the rather high income tax rate, there are a number of LINK 1 tax advantages that make the Netherlands an attractive jurisdiction for financial routes.