Tax returns for businesses
Businesses in the Netherlands are liable to various taxes with each having their own characteristics. The main ones are turnover tax (VAT), Wages Tax, Income Tax and Corporate Income Tax.
(Corporate) Income Tax
A sole trader or partnership is liable to Income Tax, whereas a limited company is submitted to Corporate Income Tax. Both taxes have their own tax facilities and deduction possibilities.
Our office will complete the annual Dutch corporate tax return in the most advantageous way and we will identify further tax-saving opportunities. Our office is dedicated to reducing the tax burden of your enterprise as much as possible. The corporate tax return will be submitted through our accountants and tax software, which enables us to communicate efficiently with the Tax Office.
In the Netherlands, apart from the tax returns on the profit made within a business, also turnover tax returns will have to be submitted in order to declare the claimable and payable/due VAT (BTW in Dutch). Also depending on the size of the business, this can be done on monthly, quarterly or yearly basis. For international transactions within the EU, also an ICP form will have to be submitted similarly.
If your business has got employees you will need to set up a payroll administration to make sure the correct amounts for Wages Tax and social security premiums are withheld and paid. The Wages Tax return will have to be submitted monthly. This is also required for the director/owner of a B.V. company, who is regarded as an employee of this business. We can take care of the payroll administration together with the tax requirements and also provide advice for your employment issues.
Tax advice business
In your business a lot of international transactions take place and you would like to know how this affects the turnover tax (BTW). You are starting up a business and need tax advice on the available Dutch business structures. Your company based in another country does business in The Netherlands and you want to make sure whether it is liable to any Dutch taxation. You want to employ people from abroad and would like to confirm that they qualify for the 30% ruling. This is where our tax advice can help you.
In the immensely complex international tax legislation often more questions come up than you care to recount. Whether you have a brief question or an extensive fiscal problem, our experts will provide you with an answer. Best results are obtained if you contact us for tax advice as early as possible when the situation still can be optimized.
For international companies not only Dutch tax law is relevant, but also tax laws in other nations and international tax treaties. This causes complicated situations, but at the same time opens up opportunities for international tax advice and tax planning. In order to avoid double taxation for example it is important that participation exemption applies to the income earned from the foreign subsidiaries.
Do you have a dispute with the Tax Office and do you need professional assistance? J.C. Suurmond & zn. Tax consultants does not hesitate to take over your case and defend your interests by appeal to the Tax Office and if necessary up to the High Court.
Example situations of business tax advice
If you are thinking of starting business in The Netherlands many legal and fiscal aspects will have to be taken into account. Decisions taken when starting a business often have long-term consequences – either positively or negatively. International business structures need careful tax planning in order to design the most tax efficient structure. Therefore it is important to acquire professional advice. You can contact us for advice.
Our advisors can advise you how to start a business in the Netherlands and can support you with:
- assisting with incorporation and registering with the Chamber of Commerce;
- submitting the necessary forms to the Tax Office and other authorities;
- drafting a business plan and organising the accounts;
- deciding which business type you want to use, for example sole trader, partnership or limited liability company, which each have their own legal characteristics and tax facilities.
Corporate tax rates
The business investment climate is very favourable in The Netherlands. The corporate tax income rate for example is only 20 to 25%. Research & development projects profit from the innovation box, with a corporate tax rate down to 5%. The Netherlands has got one of the largest tax treaty networks, thus avoiding double taxation with many countries. The Dutch participation exemption causes dividends from qualifying shareholdings to be enjoyed tax free and the fiscal unity regime makes it possible to freely offset profits and losses among group members. Maybe yet more important is the beneficial fiscal climate towards international companies.
Corporate tax facilities
The corporate tax facilities together make international business structures very tax efficient. On top of all this there is the 30% tax ruling for expatriates recruited from abroad, which makes 30% of their income tax free along with other advantages.
Correct financials start with keeping good financial accounts. Therefore it is important that your daily financial transactions are processed correctly. Our office can support you with this or take over the complete accounting.
In the annual financial report all the accounting details are assembled. The information from the annual accounts has to be processed in the (corporate) income tax return. The results also give useful accounting information to the management of the business. The figures can be analysed and compared with previous years, in view of making financial decisions for future projections and budgets. For B.V.’s in the Netherlands for example the financial report will also have to be submitted to the Chamber of Commerce for publication.
Interim accounting reports
Apart from the annual accounts, interim figures will help you to have an up to date financial insight in your business. Only with accurate financial information will you be able to take right important decisions. If you only find out your performance after the year, you may be too late to change the course. With better accounting and financial management you will achieve better results. We can help you to analyse both opportunities and bottlenecks.