Paying taxes in the Netherlands as an entrepreneur
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. If your business is based abroad and is doing business in the Netherlands, you may have to pay Dutch taxes as well. Read more about the different types of taxes for businesses in the Netherlands.
Chat with the Tax Administration
Every day between 09:00 and 16:00 it is possible for starters and SMEs to chat with the Tax Administration. Go to goedestartbelastingdienst.nl to start a chat. You can also make an appointment for a video call with one of their advisers to ask them your tax questions.
Which Dutch taxes your business must pay depends on your situation
Not every tax applies to every business. Which Dutch taxes you must pay as an entrepreneur depends on your situation. For example, where your business is located, your business activities in the Netherlands, your legal structure, and whether you employ staff here.
Your business will be based in the Netherlands
You will have a permanent establishment (vestiging) in the Netherlands and must be registered in the KVK Business Register. A permanent establishment is a fixed place from which your business will operate, such as an office, shop, or workshop.
Business registration
If your business has or will have a permanent establishment in the Netherlands, you must register it with the Netherlands Chamber of Commerce KVK. KVK will pass your details to the Netherlands Tax Administration (Belastingdienst).
Your business is established abroad but is active in the Netherlands
If your business is established abroad but does business in the Netherlands, you may have to register with the Netherlands Tax Administration. This depends on your activities in the Netherlands. For example:
- you sell goods or services in the Netherlands and must register for VAT.
- you have a branch or permanent establishment in the Netherlands and must pay income tax or corporate income tax.
- you employ staff who work in the Netherlands and must withhold payroll tax.
Do you need to register in the Netherlands?
You may need to register directly with the Netherlands Tax Administration if you need to file tax returns or pay taxes in the Netherlands. For example, for VAT, corporate income tax, or payroll taxes. Whether you need to register depends on your activities in the Netherlands.
Find out if you need to register
Opening a branch in the Netherlands as a foreign business
If you already own a business outside the Netherlands and plan to open a branch in the Netherlands, visit the Tax Administration’s website for more information about taxes. Or contact them by phone or in writing.
Most common taxes
These are the most common business taxes in the Netherlands:
Value-added tax or VAT (belasting toegevoegde waarde, 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 0%, 9% or 21%. Some products and services are exempt from VAT. Find out more about the different VAT rates.
VAT returns are usually filed monthly, quarterly, or annually, depending on your situation.
Read how to file a Dutch VAT return
Business abroad and Dutch VAT tax
If your business is established outside the Netherlands but does business in the Netherlands, you may have to comply with Dutch VAT rules.
How you pay tax on your profit depends on the legal structure of youtr business.
Sole proprietorships and partnerships
Do you have a sole proprietorship, a general partnership (VOF), or another business structure without legal personality? And does the Tax Administration consider you to be an entrepreneur for income tax purposes? You may pay income tax on your profit.
Read more about paying income tax
Legal entities
If your legal structure is a private limited company (BV) or public limited company (NV), or another legal entity, you must pay corporate income tax (VPB).
Other legal entities such as a foundation (stichting) or association (vereniging) usually only have to file corporation income tax returns if they have commercial activities. Depending on the level of profit, they may be exempt from corporate income 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).
Do you employ staff in the Netherlands? You must first register as an employer with the Netherlands Tax Administration. This may also apply if your business is based outside the Netherlands but employs staff who work in the Netherlands.
As an employer you must withhold and pay payroll tax (loonbelasting). You deduct certain taxes and contributions from your employees' wages. You pay these payroll taxes to the Netherlands Tax Administration.
Payroll tax consists of:
- wage tax (wage withholding tax) and national insurance contributions
- social security contributions
- an income-dependent employer's health care insurance contribution
Depending on your location and type of business, you may have to pay various local taxes. For example, water tax, waste disposal tax, and advertising tax. You pay these local taxes to the:
- municipality (gemeente)
- province (provincie)
- water authority (waterschap)
Contact these organisations to find out which taxes apply to your business.
If you buy or sell goods or services internationally, different tax rules may apply. You may have to deal with VAT, import duties, excise duty, or other taxes and duties. The rules depend on what you trade and whether you do business within or outside the EU.
Find out more about taxes when doing business internationally
Tax deductions and schemes
There are schemes that can reduce the amount of tax you pay. Which schemes you can use depends on your business and activities.