Paying taxes in the Netherlands

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Netherlands Tax Administration, Belastingdienst
Netherlands Tax Administration, Belastingdienst
3 min read

Business owners in the Netherlands must pay tax in the Netherlands. This can include taxes on income, turnover and profit, municipal taxes, and environmental taxes. Read more about the different types of taxes for businesses in the Netherlands.

Your business registration and taxes

Do you register your business with the Netherlands Chamber of Commerce KVK in the Business Register (Handelsregister)? Then your business will also be automatically registered with the Netherlands Tax Administration (Belastingdienst). It is mandatory to register your company if it has an establishment in the Netherlands.

Do you represent a foreign company without a permanent establishment in the Netherlands? And do you perform services on its behalf in the Netherlands? You must register with the Tax Administration yourself. Find the foreign companies registration form on the Tax Administration website.

Most common taxes

These are the most common business taxes in the Netherlands.

Turnover tax (BTW)

Value-added tax or VAT (BTW) is a form of turnover tax, or sales tax (omzetbelasting) that you add to most – but not all – goods and services your business sells in the Netherlands. VAT rates in the Netherlands are 9% or 21%. Some products and services are exempt from VAT (0%).

You can usually reclaim the VAT that your business pays on the goods and services it purchases. Turnover tax returns can be filed either monthly, quarterly, or annually. Read how to file your VAT return.

If your business is established outside the Netherlands, but trades in the Netherlands? You will still have to deal with Dutch VAT rules. The rules that apply to businesses outside the Netherlands differ from the rules applicable to businesses in the Netherlands.

Income tax in the Netherlands

Are you a sole trader or a partner in a commercial partnership (vennootschap onder Firma, vof)? And does the Tax Administration consider you to be in business? Then you must pay income tax on your business profits. The Tax Administration applies various criteria to determine your exact status, e.g. anticipated profitability, business practices, autonomy, personal risk, etc. Learn more about filing your income tax return.

Corporate income tax in the Netherlands

If you own a private limited company (besloten vennootschap, bv) or public limited company (naamloze vennootschap, nv), you have to pay corporate income tax (vennootschapsbelasting) on behalf of your company. Foundations, charities, and associations only have to file returns for corporate tax in the Netherlands in specific situations. You may be exempt, depending on your profit levels. Read more about filing your corporation tax return.

Dutch dividend tax

As a private or public limited company, you may decide to distribute profits to your shareholders. This usually takes the form of a dividend. If so, you also have to pay Dutch dividend tax (dividendbelasting).

Payroll tax

Do you employ staff in the Netherlands? You have pay payroll tax (loonbelasting). You deduct this from your employees' wages. You pay these payroll taxes to the Tax Administration (file payroll tax returns).

Payroll tax consists of:

Business tax advice for foreign companies

If you already own a business outside the Netherlands and are planning to open a branch in the Netherlands, visit the Netherlands Tax Administration website. You can also contact them by phone or letter.

Municipal, water authority, and provincial taxes

Depending on your location and type of business, you will be faced with different local taxes. For example, water tax, waste disposal tax, and advertising tax, to name but a few. Contact your municipality (gemeente), province (provincie), or water authority (waterschap) to find out which taxes apply to your business.

Other costs

If you own an international business, you may also have to pay import or export levies.

Tax incentives in the Netherlands

Find out about tax incentives in the Netherlands. For example, allowances, exemptions from premium payments or premium discounts, tax rebates, and deductible expenses.

Compare taxes in Europe

Are you looking into which country you want to move to? Find more information in the European Commission's Taxes in Europe database.

Questions relating to this article?

Please contact the Netherlands Tax Administration, Belastingdienst