Доклад: Налоговая система Нидерландов
Министерство Образования Украины
Херсонский Государственный Технический Университет
для студенческой конференции кафедры «Финансы и кредит» на тему:
Налоговая система Нидерландов
студент гр. 3 ФК 3,
Организационная структура. 4
2. Общая информация о налогах, присутствующих в системе налогообложения
3. Налог на прибыль корпораций(Corporation Tax). 7
3.1 Taxpayers 7
3.2 Tax base and rates 7
3.2.1. General 7
3.2.2. Tax rates 7
3.2.3. Determination of profits according to sound business practice 7
3.2.4. Depreciation of fixed assets 8
3.2.5. Stock valuation 8
3.2.6. Tax-deductible expenses; mixed expenses 8
3.2.7. Reserves 9
3.2.8. Investment allowance 9
3.2.9. Education allowance 10
3.2.10. Tax-deductible donations 10
3.2.11. Offsetting of losses 10
3.3. Participation exemption 10
3.3.1. General 10
3.3.2. Shareholdings 10
3.3.3. Gains 11
3.3.4. Costs 11
3.3.5. Converting a permanent establishment into a subsidiary 12
3.3.6. Losses resulting from liquidation 12
3.3.7. Directive on parent companies and subsidiaries 12
3.4. Fiscal unity; consolidation for tax purposes 12
3.5. Investment institutions 13
3.5.1. General 13
3.5.2. Conditions 13
3.5.3. Reserves 14
3.5.4. Allowance for foreign withholding tax 14
4. Подоходный налог(Income Tax) 14
4.1 Taxpayers: residents and non-residents 14
4.2 Taxbase and rates 15
4.2.1. Taxable income of residents 15
4.2.2. Tax rates and personal allowances 15
4.2.3. Total gross income 16
4.2.4. Non-source-related deductions 20
4.3. Employee savings and profit-sharing schemes 21
4.3.1. Employee savings schemes 21
4.3.2. Profit-sharing schemes 21
4.4. Foreign employees: the 35% rule 22
5. Налог на богатство(Wealth Tax) 22
5.1. Taxpayers: residents and non-residents 22
5.2. Tax base and rates 23
5.2.1. Exemptions 23
5.2.2. Tax rates 24
5.2.3. Special allowances 24
5.3. Tax returns and assessments 24
6. Налог на добавленную стоимость(Value Added Tax and Excise Duty) 25
6.1. Taxable persons 25
6.2. Tax base 25
6.3. Exemptions 26
6.4. Special arrangements for small businesses (persons) and the agricultural
6.5. Tax rates 27
6.6. The new VAT system in the single European market 27
6.7. Tax returns and assessments 28
7. Налоги на охрану окружающей среды(Environmental Taxes) 28
7.1. Fuel tax 28
7.2. Tax on groundwater 29
7.3. Tax on tap water 29
7.4. Tax on tap water 29
7.5. Regulatory energy tax 30
8. Избежание двойного налогообложения на доход, прибыль и богатство(Avoidance
of Double Taxation for Taxes on Income, Profits and Wealth)
8.1. General 30
8.2. Methods 31
8.2.1. The exemption with progression method 31
8.2.2. The credit method 31
8.2.3. Deduction as costs 31
Причины, побудившие меня к написанию доклада относительно голландского
налогообложения, весьма просты. Я побывал в Голландии, где имел ряд контактов
«коллегами» родственной специальности и от них услышал о весьма тяжелом
бремени налогов, воочию же было видно лишь повсеместное процветание и
социальная защищенность. Такой феномен не мог не заинтересовать, и тема
доклада вполне закономерна.
1. Организационная структура.
Верховным органом, принимающим и дополняющим налоговое законодательство,
являются Генеральные штаты, законодательный аналог Верховной Рады.
Генеральные штаты, точнее представители 2-3 самых крупных партий, победивших
на выборах, формируют Кабинет Министров. Отличительной особенностью
голландского способа управления налоговой ситуацией является то, что органы
контроля и регулирования входят в структуру Министерства Финансов. Существует
2 департамента – Генеральный директорат по налогам, таможенной политике и
законодательному обеспечению, а так же Генеральный директорат по налоговому и
Первый из выше упомянутых департаментов занимается корректировкой процесса
налогообложения, например, при неэффективности некоего налога подает
аналитический доклад в Генеральные штаты с пропозицией изменить, отменить,
ограничить действие какого-либо пункта в законодательстве, также директорат
участвует в фискальной части составления бюджета.
Генеральный директорат по налоговому и таможенному администрированию
непосредственно следит за выполнением налогового законодательства, собирает
перечисленные средства, решает конфликты на почве налогообложения, принимает
меры в случае нарушений налогового законодательства.
Если провести аналогию с нашей ситуацией первый Директорат соответствует
Комитету по налогообложению и налоговой политике в нашей ВР, а Генеральный
директорат по налоговому и таможенному администрированию может быть соотнесен
со структурами ГНАУ.
2. Общая информация о налогах, присутствующих в системе налогообложения
v Категория налогов на прибыль, доход и чистое богатство(taxes on income,
profits and net wealth)
Income tax is a tax on a person's natural annual income. It is levied at a
progressive rate. Personal circumstances are taken into account when making
the assessment of the amount of tax to be paid, and certain expenses are tax-
deductible. The scheme provides for a personal allowance, the amount of which
is dependent on the individual circumstances. There are four tax rates,
33.90%, 37.95%, 50% and 60%. The first two rates include both tax and social
security contributions; the last two rates consist solely of tax.
Income tax has two advance levies, which are a salaries tax, and a dividend
tax. The salaries tax and the social security contributions are levied
jointly on earned income or benefits. The employer or body paying the benefit
deducts the tax and contributions directly from the salary or benefit, and
pays these to the Tax Department. Many natural persons pay only salaries tax,
and are not subject to income tax. For natural persons with a high income or
many tax-deductible items, the salaries tax serves as an advance levy, and
they are subsequently issued with an income tax return and an assessment.
The other second advance levy for income tax is the dividend tax. The
corporation paying the dividend withholds dividend tax at a rate of 25% and
pays the tax to the Tax Department. Shareholders are liable for income tax on
the gross dividend they receive. An amount of this dividend is exempted from
income tax, NLG 1,000 for single persons and NLG 2,000 for married persons.
For non-residents the dividend tax levied on a dividend is in principle a
final levy. Tax conventions generally provide for a lower rate than the 25%
Corporation tax is levied on the taxable profit of both private and public
companies. Foundations (in Dutch 'stichtingen') may also be liable for
corporation tax. An important feature of the corporation tax is the
participation exemption, which ensures that corporation tax is levied only
once on the profit obtained within a group. This means that a company
receiving dividends does not have to pay corporation tax on these dividends
since the tax has already been paid by the company distributing the
dividends. Corporation tax is levied at a rate of 35%. The first NLG 50,000
taxable profit is levied at a rate of 30%.
Wealth tax is levied on a natural person's total net wealth. The net wealth
is the value of the assets less any liabilities. In principle the assets
include all property and possessions, for example the person's own home,
shares, bonds and savings, together with the capital invested in the person's
own business. There are several personal allowances and exemptions. For
instance the personal allowance for married couples is NLG 250,000. The tax
rate is 0.7%.
The Inheritance Tax Act has two forms of tax, which are inheritance tax and
gift tax. These taxes are, in general, to be paid by the recipient. There are
substantial exemptions from both inheritance tax and gift tax. There are no
exemptions from inheritance tax payable upon the inheritance or donation of
specific assets, for example property. The rates are the same for these
taxes, and depend on the value of the assets that have been received and the
relationship between the giver and the recipient. There is a minimum and
Tax on games of chance
The tax on games of chance is levied on prizes that exceed NLG 1,000. The
rate is 25%. The organisation awarding the prize generally pays the tax, and
the winner receives a net prize.
v Категория налогов и пошлин на товары и услуги(taxes and duties on
goods and services)
Import duty is levied on imported goods. This usually amounts to a percentage
of the value of the goods being imported. Various rates are applicable, which
are determined by the EU. The rates are usually lower for minerals or raw
materials, and higher for finished products. Import duty is levied on goods,
which are imported from countries outside the EU. The revenue is destined for
Value added tax
Value added tax (VAT) is a general consumer tax included in the price
consumers pay for goods and services. Consumers pay this tax indirectly, and
companies remit the tax to the Tax Department. All companies pay VAT,
although there are a few exceptions. The VAT paid by one company to another
may be reclaimed from the VAT to be paid to the Tax and Customs
Administration. There are three rates for VAT:
· a general rate of 17.5%;
· a lower rate of 6%, applicable mainly to food and medicines;
· a zero rate, applicable mainly to goods and services in
international trade, so that goods can be exported free from VAT.
Excise duty is levied on certain consumer goods, i.e. petrol and other
mineral oils, tobacco products, and alcohol and alcoholic beverages. A
special consumer tax is levied on non-alcoholic beverages. Excise duty, like
VAT, is included in the price consumers pay for these goods. The tax is
remitted by the manufacturers and importers of the goods liable to excise
Taxes on legal transactions
Three taxes on legal transactions are levied in the Netherlands. These are
transfer tax, insurance tax and capital duty. Transfer tax is levied on the
acquisition of property located in the Netherlands. The rate is 6% of the
market value of the property. Insurance tax is levied on insurance premiums
at a rate of 7%. The following insurances are exempted from insurance tax:
life insurance, accident insurance, invalidity insurance, disablement
insurance, medical insurance, unemployment insurance and transport insurance.
Capital duty is levied when capital is contributed to companies located in
the Netherlands when the capital is comprised of shares. The rate is 0.9% and
the tax due is calculated on the value contributed (assets less liabilities),
or on the nominal value of the shares, whichever is higher. In certain
circumstances an exemption is made for mergers or reorganisations.
Motor vehicle tax
Motor vehicle tax is paid on vehicle ownership, except for buses, for which
vehicles the tax is paid for the use of the roads. The amount depends on the
type and weight (sometimes gross) of the vehicle and for private cars also on
the type of fuel the vehicle uses. Furthermore, for private cars and
motorcycles, the amount is dependent on the province in which the
person/owner is resident or the company/owner is established.
Tax on heavy vehicles
The tax on heavy vehicles (also known as the eurovignette) is a tax on vehicles
with a gross weight of maximum 12.000 kg or more. It is levied for the use of
motorways in the Netherlands. The tax has to be paid before the vehicle
uses the motorway. There are two rates of tax, which are based on the number of
axles of the vehicle; one rate is for three axles or less, the other for four
axles or more. The tax can be paid daily, weekly, monthly or annually. A
similar tax, based on a directive of the European Union and a Treaty, is levied
in Belgium, Denmark, Germany, Luxembourg and Sweden.
Tax on private cars and motorcycles
The tax is included in the price paid by the buyer on the purchase of a
private car or motorcycle. It is usually paid by the manufacturer or
importer. The tax is dependent on the net listed value of the private car or
motorcycle. The minimum tax rate is 10% of the net listed value of the
vehicle, unless it is 25 years of age or older.
There are several environmental taxes in the Netherlands. Fuel tax is to be
paid by suppliers or users of mineral oil and other fuels. Since 1 January
1995 taxes are liable for the withdrawal of ground water and the disposal of
waste. A regulatory energy tax came into force on 1 January 1996.
3. Налог на прибыль корпораций(Corporation Tax).
Corporation tax is levied on companies established in the Netherlands
(resident taxpayers) and by certain companies not established in the
Netherlands, which receive income in the Netherlands (non-resident
taxpayers). In this context the term 'company' includes corporations with a
capital consisting of shares, co-operatives, and other legal entities
conducting business. The main types of companies referred to in the
Corporation Tax Act are the public company (NV) and the private company with
limited liability (BV).
Whether a company is deemed to be established in the Netherlands depends on
the individual circumstances. Factors of relevance include the location of
the effective management, the location of the head office, and the location
of the shareholders' general meeting. Under the Corporation Tax Act all
companies incorporated under Dutch law are regarded as being established in
3.2 Tax base and rates
Corporation tax is levied on the taxable amount, which is the taxable profits
made by the company in a particular year less deductible losses. The taxable
profits are the profits less tax-deductible donations. In principle the
profits should be calculated in accordance with the provisions laid down in
the Income Tax Act to determine the business profits of natural persons. In
certain cases additional stipulations made in the Corporation Tax Act are
also applicable. Under certain conditions it will be permitted to taxpayers
to compute their taxable profit in currency other than the guilder (the
‘functional currency’) for a period of at least 10 years.
3.2.2. Tax rates
Corporation tax is levied at a rate of 30% of taxable profits.
3.2.3. Determination of profits according to sound business practice
The profits should be determined according to sound business practice and
consistent accounting methods. The concept of sound business practice has
mainly been developed in case law. For example unrealized losses may be taken
into consideration, while unrealized profit may be ignored. The requirement
of consistent accounting methods means that the method of determining profits
may be changed only if this is compatible with sound business practice.
Companies exploiting sea-going vessels may opt for a tonnage-based profit
determination, providing that certain requirements are met. An important
requirement is that the decision is binding for a period of ten years.
3.2.4. Depreciation of fixed assets
The depreciation of fixed assets for tax purposes is a statutory requirement.
In principle taxpayers are free to choose a depreciation method. The method
chosen must be in accordance with sound business practice. The linear method
of depreciation is generally used. A less common method of calculating
depreciation is the declining balance method. In case law, the latter method
is accepted only for fixed assets with a steadily declining use with age. A
combination of both methods, i.e. depreciation according to a declining
percentage, may also be used.
Goodwill may only be depreciated if the goodwill has been purchased from a
third party; goodwill generated by the company itself cannot be depreciated.
An accelerated depreciation is permitted for certain fixed assets, of which
the most important are:
· energy-saving fixed assets and other environmentally-friendly fixed
· sea-going vessels;
· intangible assets, providing these belong to a business that has
been purchased which was not established in the Netherlands.
This is subject to restrictions.
3.2.5. Stock valuation
The following stock valuation methods are permitted: valuation based on cost,
valuation based on cost or market value (whichever is lower), or the base
stock method. Valuation at cost is in accordance with sound business
practice, unless the market value is significantly lower than the cost. In
this system unrealized profit is ignored, while unrealized losses can be
taken into account directly. The value of the stock can be determined by
either the FIFO or LIFO method. Subject to certain conditions, case law also
permits the use of the base stock system.
3.2.6. Tax-deductible expenses; mixed expenses
The basic principle of the determination of the profits is that all expenses
associated with business operations are tax-deductible. If an expense can be
regarded as commercially sound then its value is not of importance. However,
the deductibility of certain business expenses is subject to restrictions.
This concerns mixed expenses, which are business expenses with a private
element. Non-deductible expenses include costs connected with pleasure craft
used for entertainment purposes and fines.
The limitations on deductibility of expenses are more strict for companies
with one or more natural persons holding a substantial interest in the
company, who also work(s) for the company. Basically, a natural person has a
substantial interest if he holds 5% or more (direct or indirect) of the
share-capital of the company. In that case 10% of the company's costs in
connection with food, drinks, tobacco, representation including receptions
and entertainment, seminars, excursions etc., are not deductible. The company
can opt for a fixed amount of NLG 3,200 per substantial interest holder, who
also works for the company, to be treated as non-deductible.
The Corporation Tax Act gives an inexhaustive list of deductible and non-
deductible expenses. The following expenses are always deductible:
· profit shares paid to directors and other staff as remuneration for
· profit shares paid to creditors other than founders, shareholders or
other persons entitled to shares in the corporation;
· profit shares paid in connection with licences, patents, etc., to
persons other than founders, shareholders or persons otherwise entitled to
shares in the corporation;
· profit shares paid by an insurance company to its policyholders;
· the costs of incorporation and of alterations in the capital.
In the Netherlands no thin capitalization rules exist. Since January 1997
limitations on the deductibility of intercompany interest expenses have been
introduced in the Corporate Income Tax Act. The (interest) expenses on
intercompany loans are not deductible in basically two types of situations:
(interest) expenses arising from indebtness in the shareholder/susidiary
relation, e.g. in connection with dividends, reduction of capital and capital
contributions. However, (interest) expenses remain deductible, if the tax
payer can demonstrate that both the transaction and the loan were entered
into for sound business reasons;
(interest) expenses related to artificial conversion of equity into debt
within the group. However, expenses related to these schemes remain
deductible, if the tax payer can demonstrate that either both the transaction
and the loan were entered into for sound business reasons or that the
interest paid is effectively subject to a reasonable level of profits tax in
the hands of the recipient.
The following expenses are never deductible:
· profit distributions other than those specifically designated as
deductible in the Corporation Tax Act (see above);
· corporation tax, dividend tax and tax on games of chance.
Certain reserves may be formed by making a deduction from the profits. In
order to qualify for this deduction the business must keep regular annual
accounts. Three reserves are legally permitted, which are the cost
equalisation reserve, the replacement reserve and since January 1997 the
reserve for financial risks for multinational companies.
The cost equalisation reserve enables recurrent costs to be spread uniformly
over a period of time.
A replacement reserve may be created if fixed assets are lost, damaged, or
sold, when the payment received exceeds the book value. To be eligible for
this reserve there must be plans to replace or repair the assets. The reserve
should generally be terminated in the fourth year following the year in which
it was formed.
Under certain conditions a reserve may be formed for the special risks
involved in operating as an international group. The risks aimed at concern
financing and holding activities. One of the main conditions to qualify is
that the financing activities must comprise financing of group companies in
at least four countries or on two continents. In principle, the entity that
forms the reserve may charge to this reserve 80% of its income derived from
financing activities before tax. The tax inspector will grant the regime for
ten years upon a request filed by the tax payer, in wich the tax payer states
the relevant factual circumstances. The Dutch tax inspector can impose
3.2.8. Investment allowance
This scheme allows a certain percentage of the sum invested in fixed assets
in a particular year to be deducted when calculating the taxable profits.
Investments are divided into nine tranches, where the percentage of the
allowance decreases with increase in investment. In 1999 the lowest tranche
is applicable to investments between NLG 3,900 and NLG 65,000, and the
highest tranche is applicable to investments between NLG 503,000 and NLG
566,000. The corresponding percentages are 27% and 3% respectively. Certain
fixed assets are excluded from the investment allowance. If fixed assets for
which an investment allowance was obtained in the past are sold within five
years of being purchased then the investment allowance is withdrawn either
wholly or in part.
Furthermore, there is an investment allowance in respect of investments in
energy saving business assets, placed on an Energylist. For investments over
NLG 3,900 up to NLG 65,000 the allowance is 52%. The percentage of the
allowance declines as the amount of the investment increases. The maximum
allowance is 40% of NLG 208 mln.
3.2.9. Education allowance
This scheme allows an additional percentage of the costs of education of
employees to be deducted when calculating the taxable profits. The percentage
of the allowance varies between 20% and 80%.
3.2.10. Tax-deductible donations
Within certain limits donations to religious, ideological, charitable,
cultural or academic institutions or other bodies serving the public good are
tax-deductible. The donations must be more than a total of NLG 500. The
maximum deduction is 6% of the profits.
3.2.11. Offsetting of losses
A loss may be offset against the taxable income of the three preceding years
(carry back) and against taxable income of all years to come (carry forward).
If a corporation discontinues its business either wholly, or in part, then
any losses that have not been offset may be compensated with future profits,
provided that at least 70% of its shares continue to be held by the same
3.3. Participation exemption
The Corporation Tax Act has always provided for a participation exemption,
which is applicable to both domestic and foreign shareholdings. This
exemption is one of the main pillars of the Dutch Corporation Tax Act, and it
is motivated by the desire to prevent double taxation when the profits of a
subsidiary are distributed to its parent company which is also liable to
corporation tax. The main features of this scheme are as follows: all gains
from shareholdings are exempted, the costs associated with a shareholding are
not deductible, and losses arising from liquidation of the corporation are
deductible only under certain conditions. The corporation distributing
dividends does not have to pay dividend tax if the distribution of profits
falls under the participation exemption enjoyed by the company receiving the
The most important elements are as follows.
The participation exemption is applicable to both domestic and foreign
shareholdings. A shareholding is deemed to exist if the taxpayer:
1. holds at least 5% of the nominal paid-up capital (a shareholding
includes the related possession of 'jouissance' rights); or
2. holds less than 5%, but ownership of the shares is part of the normal
business conducted by the taxpayer, or the acquisition of the shares served a
general interest; or
3. is a member of a cooperative; or
4. holds at least 5% of the share certificates in a mutual fund based in
The participation exemption is not applicable if the taxpayer or subsidiary
company is a fiscal investment institution. The concept of an investment
institution is explained in section 3.6. The participation exemption is not
applicable when the shares are held as stock.
The participation exemption does not apply internationally when shares in the
foreign corporation are held as a portfolio (passive) investment. Another
requirement for the exemption to be granted is that the foreign company in
which the shares are held is subject to a tax on profits levied by the
central government in the country in which it is established (see also
3.3.7.). Furthermore, the participation exemption is not applicable for
participations in foreign 'passive' finance companies.
In principle a Dutch company cannot credit any foreign withholding tax on
dividends received from foreign subsidiaries to which the participation
exemption is applicable. However, the Dutch dividend tax which has to be
transferred by the Dutch company in the event of the redistribution of
foreign dividends received can be partly reduced, subject to certain
conditions. The reduction amounts to a maximum of 3% of the foreign dividends
Gains from shareholdings are ignored when calculating the profits. In
principle the term 'gains' includes both profits and losses. Profits, of
course, include both official and disguised dividends received. Exempted
gains also include profits made by the sale of a participation (including
exchange rate differences). Since January 1997, it is possible to opt for
application of the participation exemption to currency results arising from
financial instruments which are used to hedge the translation risks on
investments in foreign subsidiaries. Accordingly losses from sales are not
deductible. If the participation declines in value as a result of losses
suffered, then a write-off by the parent company is in principle non-
deductible. An important exception is losses resulting from liquidation (see
However, since January 1997 a company may claim a tax deduction for start-up
losses of a subsidiary, in which it holds at least 25% of the share-capital.
The rules allow the parent company to depreciate the book value of the
subsidiary in the first 5 years after the acquisition if and to the extent
that the value of the subsidiary has declined below cost price. When the
subsidiary becomes profitable, a taxable appreciation has to be made up to
the amount of the cost of the investment. To the extent the depreciation has
not been reversed during the first 5 years, the balance will then have to be
reversed in the next 5 years in equal steps.
If the depreciated debts of a subsidiary to a parent company are converted
into share capital then a special provision prevents tax claims being lost.
In such cases an amount equal to the depreciation of the debt is, in
principle, again regarded as part of the profits of the parent company. This
is also applicable when the debt is sold to an affiliated company or if it is
Shareholdings may give rise to costs as well as gains. In principle such
costs are not deductible. However an exception is made when these are
indirectly conducive to making profits taxed in the Netherlands. With foreign
shareholdings this may occur if the foreign subsidiary has a permanent
establishment in the Netherlands. In practice the main non-deductible costs
are the costs of financing the participation. The taxpayer must also show
that the costs are conducive to making domestic taxable profits.
3.3.5. Converting a permanent establishment into a subsidiary
As losses incurred by foreign subsidiaries cannot be offset against profits
made by the Dutch parent company, foreign activities from which profits are
not directly expected are often undertaken through a permanent establishment.
Foreign losses can then be directly deducted from the profits of the Dutch
company. To prevent losses being deducted from the profits in the Netherlands
whilst later profits in this country are not taxed, it is stipulated that
when a permanent establishment is converted into a subsidiary then the profit
made by the subsidiary up to the amount of the losses deducted from the Dutch
profit is not exempted from taxation. This obligation to compensate profits
made by a subsidiary with earlier losses incurred by the permanent
establishment is applicable to the eight years preceding the conversion, and
is subject to the condition that the losses have not been offset against
other foreign profits.
3.3.6. Losses resulting from liquidation
In principle losses from participations cannot be taken into account by the
parent company. An exception is those losses resulting from liquidation. The
liquidated subsidiary cannot be compensated for these losses in the future.
For this reason these losses may be taken into account by the parent company,
under certain conditions, in the year in which the liquidation of the
subsidiary is completed. The loss resulting from liquidation is the
difference between the liquidation payments and the sum paid to acquire the
participation (the 'sacrificed amount'). Special rules apply if a tax
deduction has been claimed for this participation (see 3.3.3.).
There are additional requirements for taking account of the losses resulting
from the liquidation of foreign participations. One requirement is that the
holding must be at least 25%, and that it must have been held during the five
years preceding the discontinuation of the subsidiary's business, the year of
discontinuation itself, and during subsequent years in which liquidation
payments are received. In addition no loss resulting from liquidation can be
taken into account if the participation was obtained from a foreign
associated company when the operations concerned are discontinued within
3.3.7. Directive on parent companies and subsidiaries
In 1992 Dutch legislation was amended in line with the EU directive on parent
companies and subsidiaries. The relevant Act has a retroactive effect from 1
January 1992. The participation exemption has been extended in several
respects. For example an investment in a company established in another EU
member state can be regarded as a participation covered by the participation
exemption. For this purpose a shareholding of at least 25% is required. The
possession of at least 25% of the voting rights in a company can also be
regarded as a participation under certain conditions, even if the
shareholding is less than 5%. Under this Act dividend tax is not levied on
dividend paid to a company established in another member state when the
company has an interest of at least 25% in the company paying the dividend.
This act was further amended in 1994 in order to give the exemption of
dividend tax a wider application than the EU directive. If certain conditions
are met then the exemption now becomes applicable when the shareholder has an
interest of at least 10% in the company's capital, or holds at least 10% of
the voting shares.
3.4. Fiscal unity; consolidation for tax purposes
Under certain conditions a parent company may form a fiscal unity with one or
more subsidiaries. For corporation tax purposes this means that the
subsidiaries are deemed to have been absorbed by the parent company. The main
advantages of fiscal unity are that the losses of one company can be set off
against profits from another company, and that fixed assets can be
transferred at book value from one company to another.
This type of tax consolidation is possible only between a parent company and
its wholly owned subsidiaries (in practice 99% is sufficient) when all the
companies involved in the consolidation are established in the Netherlands.
Other conditions are that the parent company and the subsidiaries have the
same financial year, and are subject to the same taxes. A request to form a
fiscal unity must be submitted to the Inspector on behalf of all the
companies involved. The standard conditions drawn up by the Minister of
Finance must be met. These conditions cover a large number of technical
aspects involved in consolidation.
The fiscal unity can be terminated upon request, or will be terminated
automatically if any of the conditions are not met.
Since January 1997 new regulations apply to leveraged acquisitions, in case a
leveraged Dutch acquisition vehicle is used to acquire a Dutch operating
company. The aim of these regulations is to prevent the acquisition vehicle
to form a fiscal unity with the target company in order to offset its
interest expenses against the profits of the operating (target) company. In
principle, following to the new fiscal unity rules these (interest) expenses
are disallowed (for a period of eight years) to be offset against the profits
of the target company.
3.5. Investment institutions
Subject to certain conditions Dutch-based public companies, private companies
and mutual funds may apply for recognition as investment institutions for
taxation purposes. An investment institution can request to pay corporation
tax at 0%. The purpose of this system is to ensure that persons investing in
an investment institution shall not receive a less favourable treatment than
persons who invest directly. This would not be the case without a special
As stated in section 3.3.2. an investment institution does not qualify for
the participation exemption, whether it be a parent company or a subsidiary.
Several conditions must be met before an organisation may be regarded as a
fiscal investment institution. These conditions include the way in which the
investments are financed, the distribution of the investment returns, and the
ownership of shares in the investment institution. The main conditions are:
· up to 60% of the book value of the immovable property may be
financed with borrowed capital. For other investments the limit is 20% of the
· the profits must be distributed within eight months of the close of
the financial year;
· when the investment institution is listed on the Amsterdam Stock
Exchange, less than 45% of the shares may be held by a corporation liable to
corporation tax or several associated corporations (parent, subsidiary, or
sister corporations with interests of a third or more in each Mother), unless
the corporation is another listed investment institution;
· when the investment institution is not listed on the Amsterdam Stock
Exchange then at least 75% of the shares must be owned by individuals,
corporations not liable to profits tax, or listed investment institutions
which meet the above condition;
· less than 25% of the shares in the investment institution may be
held indirectly by Dutch shareholders via foreign-based corporations;
· less than 25% of the shares in the investment institution may be
held directly by a single foreign shareholder.
Institutions are allowed to form two special fiscal reserves, the
reinvestment reserve and the rounding-off reserve. The reinvestment reserve
is formed by non-distribution of capital gains. The level of the annual
contribution to the reserve and its absolute size are both subject to
restrictions. If, when establishing the amount of the profit to be
distributed, an amount remains due to sums being rounded off then this amount
may be added to the rounding-off reserve. The rounding-off reserve may not
exceed 1% of the paid-up capital.
3.5.4. Allowance for foreign withholding tax
Under Dutch law and Dutch tax conventions withholding tax levied abroad may
generally be set off against income or corporation tax payable by the
taxpayer in the Netherlands. As an investment institution is liable for
corporation tax at a rate of 0% it cannot make use of this facility. To
ensure that persons who invest directly and persons who invest via an
investment institute receive equal tax treatment, special arrangements are
made for investment institutions allowing the former to offset foreign
withholding taxes against income from securities and claims. Under these
arrangements an investment institution may obtain an allowance from the Dutch
tax authorities which amounts to no more than the withholding tax levied
abroad. If not all the shareholders in the investment institution are
resident or established in the Netherlands then the allowance is calculated
according to the number of shareholders resident or established in the
4. Подоходный налог(Income Tax)
4.1 Taxpayers: residents and non-residents
Under the present Income Tax Act residents are liable for income tax on their
world-wide income. Non-residents are taxed only on the income from a limited
number of sources in the Netherlands. The Netherlands has concluded a large
number of double taxation conventions to prevent the double taxation of
world-wide income. If no convention is applicable, tax relief may be obtained
on the basis of the Unilateral Decree for the prevention of double taxation.
(If certain requirements are met, foreign employees temporarily posted to the
Netherlands may request the application of a special tax arrangement known as
the 35% rule, see 4.4.)
The legal definition stipulates that a taxpayer's place of residence is
determined 'according to circumstances'. Several factors are of relevance
when deciding whether the taxpayer maintains personal and economic ties with
the Netherlands. These include a family home, employment, or registration in
a municipal register. Nationality is not a determining factor, but it may be
relevant in some cases. The law also provides for a number of special cases.
The crews of ships and aircraft with a home harbour or airport in the
Netherlands are deemed to be residents of the Netherlands unless they have
established residence abroad. Dutch diplomats and other civil servants
serving abroad remain residents of the Netherlands. Foreign diplomats and the
staff of certain international institutions are exempt from Dutch income tax.
If both spouses are resident in the Netherlands then married couples are
taxed individually on their personal income (business profits, salary,
pension, etc.) less certain deductions, allowances and premiums. Investment
income and non-source related deductions such as certain personal obligations
and exceptional expenses are attributed to the spouse with the highest
personal income. If only one of the spouses is resident in the Netherlands
then their incomes are regarded as completely separate.
4.2 Taxbase and rates
4.2.1. Taxable income of residents
The tax year for persons is the calendar year. Residents are taxed on their
total gross income, which is the income from all domestic and foreign sources
less the associated expenses. This income may be further reduced by certain
deductions and allowances not directly related to a specific source of
income. The balance is the total net income. This total net income is further
reduced by the deduction of losses and a personal allowance before tax is
levied. The result is the taxable amount, which is calculated as shown below.
The various terms are explained in sections 4.2.3 and 4.2.4.
|GROSS INCOME (4.2.3):|
|profits from business or professional activities ||............|
|income from a substantial holding ||............|
|net income from employment and services rendered outside employment ||............|
|net income from capital ||............|
|net income in the form of periodic payments ||............|
|TOTAL GROSS INCOME||(A)||............|
|MINUS: DEDUCTIONS (4.2.4):||............|
|contribution to the old-age reserve ||............|
|the self-employed persons' deduction ||............|
|business-assistance deduction ||............|
|personal obligations (special expenses) ||............|
|exceptional expenses ||............|
|tax deductible donations ||............|
|TOTAL NET INCOME||(A-B)|
|minus: deductible losses||(C)|
|minus: personal allowances||(D)|
4.2.2. Tax rates and personal allowances
Income tax is levied on the taxable amount calculated as shown above. This is
a progressive tax. The rates are:
The 33.90% rate is comprised of 4.5% tax and 29.40% social security
contributions, the second rate is comprised of 8.55% tax and 29.40% social
security contributions, whilst the 50% and 60% rates consist solely of tax. A
rate of 16% (first rate) and 20.05% (second rate) is applicable to persons
aged 65 and over, as they are no longer liable for several social security
The above diagram shows that a personal allowance is deducted from the total
net income before tax is levied. The level of this allowance is determined by
the tax class to which the person is assigned. This level depends on the
individual circumstances. The basic personal allowance is NLG 8,950. For
married or single persons with a spouse or partner without an income the
personal allowance is NLG 17,473. For single parents with children living
with them the allowance is NLG 15,768. For single parents in paid employment
this amount is increased by a maximum of NLG 6,821. For persons older than 65
years the personal allowance is increased by NLG 520 to a maximum of NLG
|33.90||on the first||NLG 15,255|
|37.95% ||on the next ||NLG 33,739 |
|50% ||on the next ||NLG 58,762 |
|60% ||on the remainder |
4.2.3. Total gross income
The Income Tax Act distinguishes five different sources of income, which
together comprise the total gross income. The five categories are:
I. Profits from business or professional activities
For income tax purposes the definition of 'profits' is the same as that for
the assessment of the corporation tax which is to be levied, except that in
assessing profits for corporation tax purposes a number of special factors,
notably those which reflect the difference between liability to pay income
tax and liability to pay corporation tax, are taken into consideration. This
means that for income tax purposes only sections 3.2.1, 3.2.3 to 3.2.6 (in
part), 3.2.7, 3.2.8 and 3.2.11 are applicable.
The following additional rules apply to persons conducting a business who are
liable for income tax.
· Accelerated depreciation when starting a business
From 1 January 1996 an accelerated depreciation of fixed assets is permitted,
subject to certain restrictions, for persons who have recently started a
· Exemption of profits derived from the liquidation of a business
Only part of the profits derived from the liquidation of a business are
taxable. The exemption varies with the age of the person who conducted the
business. The maximum exemption is NLG 45,000.
· Transfer of a business to a relative
If a person conducting a business transfers the business or part thereof to
his or her spouse or partner or children, the transfer may, on request, be
exempted from income tax. The successor then takes the place of the person
conducting the business. A similar smooth transfer also takes place following
the death of the person conducting the business and the dissolution of the
community of property.
· Discontinuation of a business liable for income tax when it is to be
continued as business liable for corporation tax
If a person conducting a business which is liable for income tax wishes to
continue the business activities in the statutory form of company which is
subject to corporation tax, e.g. a private company, then he or she may
request an exemption from income tax when this conversion is made. The
company then takes the place of the person conducting the business. The
Ministry of Finance has published standard conditions for such situations.
· Deduction for assistance in the business
If the spouse or partner of a taxpayer conducting a business works for that
business for a certain number of hours per year then the taxpayer may make a
deduction for that assistance from his or her gross income. The deduction is
made from the profits at a rate which is dependent on the number of hours the
spouse or partner works for the business. The rate increases to a maximum 4%
when the spouse or partner works for 1,750 hours or more in the business in
that financial year. At the request of both the taxpayer and his or her
spouse the deduction for assistance in the business may be waived. The spouse
is then assessed separately on the basis of the wage or salary received from
· Old-age reserve for the self-employed
Resident taxpayers who derive income from the profits of a business or from
self-employment are allowed to offset a certain percentage of their gross
income towards the provision of a retirement pension. The annual contribution
to this reserve may be no more than NLG 21,367 and at no time may the reserve
exceed the book value of the business's assets. If this reserve is not
converted into an annuity when the business is terminated then tax will be
levied over this amount at a rate of 45%.
· Deduction for self-employed persons
Resident self-employed taxpayers between the ages of 18 and 65 who devote at
least 1,225 hours to running a business are allowed to offset a deduction for
self-employed persons against their gross income. The amount of this
deduction is in inverse proportion to the size of the company's profits. A
fixed deduction of NLG 13,110 is allowed on profits of less than NLG 96,170.
The allowance gradually declines to NLG 8,730 on profits of NLG 108,395 or
more. Persons who have recently started a business may deduct an additional
sum of NLG 3,840 for the first three years.
II Income from a substantial holding
Income, including capital gains or losses, from a substantial holding in a
corporation is subject to income tax and is taxed at a rate of 25% insofar as
this income exceeds the first two tax brackets.
A taxpayer is regarded as having a substantial holding in a corporation if he
or she, either alone or with his or her spouse, holds directly or indirectly
5% of the issued capital. If the corporation has issued different classes of
shares, a substantial holding also exists if the taxpayer, either alone or
with his or her spouse, holds more than 5% of the issued capital of a
particular class of shares. If the taxpayer holds a substantial interest in a
corporation, jouissance rights and debt-claims issued by that corporation and
held directly or indirectly by the taxpayer, either alone or with his or her
spouse, are regarded as forming part of the substantial holding.
Interest derived from debt-claims forming part of a substantial holding is
taxed at the normal rate of income tax. Dividends and capital gains derived
from the alienation of shares or from the redemption of debt-claims are taxed
at a proportional rate of 25% in the income tax, insofar as this income
exceeds the first two tax brackets. In case of a capital loss 25% of that
loss may be offset against the tax which would otherwise be due. For this
purpose an arrangement similar to that for the offsetting of losses is
applicable (section 3.2.11). In case of emigration of the taxpayer the
substantial holding is deemed to be alienated. However, the tax due will not
be collected as long as the substantial holding is not disposed of. After the
elapse of 10 years the remainder of the tax levied because of the deemed
alienation at the time of emigration, is pardonned.
For non-residents the income from the substantial holding is only subject to
tax in case of a substantial holding in a corporation wich is a resident in
the Netherlands. With respect to non-residents a corporation is also deemed
to be a resident of the Netherlands if it was resident in the Netherlands for
at least five years during the last ten years. With respect to non-residents
the substantial holding is deemed to have been alienated in case of the
transfer of the place of effective management of the corporation from the
Netherlands to elsewhere.
III. Net income from employment and services rendered outside employment
This income is comprised of all income other than business income that is
received in cash or in kind from present and former employment, together with
income derived from services rendered outside employment.
Income from present employment includes salaries, payments, gratuities, tips
and certain periodic payments received under social security legislation (in
cash), and the free use of a private car and free housing paid for by the
employer (in kind). Income from past employment includes pensions, and
invalidity, disablement and unemployment benefits.
Salaries, wages and certain periodic payments received under social security
legislation are subject to the salaries tax. This tax is withheld by the
employer, and is essentially an advance levy on the person's final income tax
assessment (see 4.5.1).
Income from activities and services which does not qualify as income from
business or employment is considered to be income from services rendered
outside employment. To be regarded as income there must be a reasonable
expectation that these activities will yield income. Examples are the
provision of boarding for lodgers, and fees for services and copyrights.
In principle expenses incurred in connection with employment and the
provision of services are deductible from the income derived from these
activities. The deduction is equal to the actual expenses less reimbursements
or, subject to upper and lower limits, 12% of the gross salary, whichever is
larger. A fixed sum is tax-deductible for travel between home and work.
IV. Net income from capital
Net income from capital is comprised of all income from movable and immovable
property and rights not related to goods. Only the yield from property and
rights is taxable; the increase in the value of the assets is exempted. There
is no capital gains tax in the Netherlands.
A special provision is applicable to owner-occupied property. The property is
taxed at an imputed rental value, which represents the balance of the revenue
and expenses connected with the use of a dwelling. This rental value, which
is a positive amount, is assessed on statutory tables. As normal expenses are
included in the imputed rental value, no expenses other than (mortgage)
interest and ground rent may be deducted.
Interest and dividends received by private investors from designated credit
or investment institutions which mainly participate in environmental projects
are exempt from income tax.
Income from stocks and shares includes cash dividends, stock dividends and
bonuses. The final payment to the shareholder following the liquidation of a
corporation is regarded as a dividend if it exceeds the average amount paid
on the shares concerned.
Notional dividends from foreign investment corporations and funds are income
from assets, and are taxed accordingly. In principle the income from the
latter is set at 6% of the market value of the shares.
A maximum allowance of NLG 1,000 is granted insofar as dividends subject to
Dutch dividends tax exceed related expenses (including interest expenses).
Under certain conditions the amount of the dividend allowance can be raised:
· for dividends received from specific private participation
companies, the allowance is raised by a maximum of NLG 1,000;
· for dividends received in connection with employee savings and
profit-sharing schemes, the allowance is raised by a maximum of NLG 1,000;
· For dividends received from specific participation companies which
mainly participate in starting entrepeneurs (both natural persons and
corporate bodies), the allowance is raised by a maximum of NLG 5,000.
However, insofar as the corresponding interest allowance in connection with
starting entrepeneurs is utilized, this amount of NLG 5,000 is reduced.
For married taxpayers the above mentioned amounts of the dividend allowance
are doubled. The dividend allowance is not applicable with respect to
dividends from a substantial holding in a corporation.
Interest is more than just the interest received from a debtor or bank. There
are special provisions for taxation of the increase from the lower issue
price to par value of zero bonds and deep discount bonds, and the notional
interest on the bare ownership of rights and claims of which the temporary
usufruct is divided.
A maximum allowance of NLG 1,000 is granted insofar as any interest received
exceeds the interest paid in connection with sources of income and personal
obligations. This is exclusive of the interest paid on a mortgage, which is
related to the purchase or renovation of owner-occupied property. Under
certain conditions the amount of the interest allowance can be raised:
· for interest received in connection with employee savings and
profit-sharing schemes, the allowance is raised by a maximum of NLG 1,000;
· for interest received in connection with a subordinated loan to a
starting entrepeneur of at least NLG 5,000, or interest originating from
specific participation companies wich mainly participate in starting
entrepeneurs (both natural persons and corporate bodies), the allowance is
raised by a maximum of NLG 5,000.
For married taxpayers the above mentioned amounts of the interest allowance
are doubled. Furthermore, the taxpayer is entitled to an additional interest
allowance when his children under the age of 18 receive interest, up to a
maximum of NLG 500 per child.
The interest component of a capital payment from a life insurance policy (and
the investment income) is not taxed if the payment occurs because the person
insured dies before the age of 72. The beneficiary is generally allowed the
same exemption for payments upon the death of the insured person at or after
the age of 72 if the premiums have been paid over a period of at least 15
years. Interest included in payments of up to NLG 62,000 on a fixed date is
exempt from income tax if the annual premiums are paid over a period of at
least 15 years. This is also applicable to interest included in life
insurance payments of up to NLG 210,000 if the annual premiums are paid over
a period of at least 20 years. Both exemptions are subject to the condition
that the highest annual premium paid for the insurance may not be more than
ten times the lowest premium.
Income from capital includes income from life annuities and other periodic
payments resulting from either a lump-sum payment or the payment of premiums.
These payments are liable to tax over the amount that the payments and the
payments received in the past exceed the total premiums or lump sum paid
under the policy.
V. Net income in the form of periodic payments
There are two categories of periodic payments, those which are classed as
income from capital, and those which qualify as a separate source of income.
Periodic payments forming a separate source of income can be divided into
different categories. Examples are:
· payments from the state, such as certain public scholarships and
· periodic payments under family law, such as maintenance payments,
unless received from relatives once or twice removed;
· other periodic payments, claimable in court, unless received from
close relatives, foster parents or members of the same household, such as
maintenance payments to a former partner.
profits from business or professional activities;
income from a substantial holding;
net income from employment and from services rendered outside employment;
net income from capital;
income in the form of periodic payments.
4.2.4. Non-source-related deductions
In certain circumstances payments which are not related to the acquisition of
income may be deducted from the total gross income. These non-source-related
expenses can be divided into three categories, which are personal obligations
(special expenses), exceptional expenses and tax-deductible donations.
I. Personal obligations
The most important expenses which may be regarded as personal obligations are
· premiums for several forms of life annuity payments, such as
(temporary) disablement, old age and widows' annuities up to NLG 6.179 or, in
certain circumstances, up to NLG 12,358 in the case of (married) couples. If
certain conditions are met then this amount can be increased to NLG 86,480,
if the provisions for the old age pension are inadequate in relation to
· certain maintenance payments or lump-sum payments which replace these;
· interest on debts. Since 1997, the deduction of interest on debt is
restricted. Insofar interest paid is not connected with a source of income, a
maximum amount of NLG 5,291 is deductible. For married taxpayers, this amount
is doubled. Certain exemptions are applicable.
· losses on specific loans. Under certain conditions a loss on a
subordinated loan granted to a starting entrepeneur can be deducted up to a
maximum of NLG 50,000.
II. Exceptional expenses
Resident taxpayers may deduct certain exceptional expenses from their total
gross income. There are a number of categories of exceptional expenses, each
of which has its own specific non-deductible component based on the
taxpayers' gross income. For married couples the non-deductible component is
calculated on the basis of their joint income.
The following categories can be distinguished:
· medical expenses and expenses related to disability and old age are
tax-deductible when they exceed a certain percentage of the joint gross
income, subject to specified upper and lower limits;
· expenses involved in the maintenance of children younger than 27
years of age;
· expenses involved in the support of certain relatives;
· expenses which are made in connection with study or training for a
profession. Studies as a hobby do not qualify;
· expenses involved in child care, subject to certain conditions.
III. Tax-deductible donations
Donations to domestic religious, charitable, cultural and academic
institutions or other bodies serving the public good in excess of 1% of the
gross income may be deducted by resident taxpayers, with a lower limit of NLG
120. Donations in excess of 10% of the gross income are not tax-deductible.
Provided certain conditions are met this restriction does not apply to
donations in the form of annuities. Contributions to foreign institutions of
the kinds indicated above may also qualify, if the institutions have been
designated as such by the Ministry of Finance.
4.3. Employee savings and profit-sharing schemes
Employers and employees may agree to set up employee savings schemes in which
a certain maximum amount of the salary is exempt from tax and social security
contributions. Employers in the private sector can set up profit-sharing
schemes to provide a tax advantage for both employers and employees.
4.3.1. Employee savings schemes
Since January 1994 new rules apply which exempt employers from paying tax and
social security contributions on each employee's salary to a maximum of NLG
2,894. This is applicable to salaries based on:
· premium savings schemes, or
· salary savings schemes (including blocked profit-sharing schemes and
share option schemes in the private sector).
In premium savings schemes the employer withholds an agreed amount from the
employee's net salary and deposits this in a premium savings account. The
employer can then award the employee a savings premium of up to 100% of the
amount withheld, to a maximum of NLG 1,158. Under certain conditions no tax
and social security contributions need to be paid on this savings premium.
In salary savings schemes the employer withholds an agreed amount not
exceeding NLG 1,736 of the employee's gross salary and deposits this in a
savings account blocked for at least four years. When the sum is paid out it
is not liable to tax or social security contributions.
However, the employer is required to pay 10% salaries tax on the exempted
4.3.2. Profit-sharing schemes
Employers in the private sector can give their employees a share in the
(fiscal or commercial) profits of the business or of one or more businesses
associated with the business. If the profit payment is blocked in a salary
savings account then the rules for salary savings schemes are applicable (the
maximum amount on which tax or social security contributions are not due is
NLG 1,736). However, in this case the employer does not need to pay 10%
salaries tax on the exempted amount.
If the profit payment is not blocked, but is paid directly in cash or
documents of value then the employer pays 10% salaries tax on a maximum
amount of NLG 1,736. This amount is not liable for social security
contributions. Any salary savings received must be deducted from this amount.
If a profit payment minus salary savings exceeds NLG 1,736 then the normal
rate of tax and social security contributions must be paid over the
4.4. Foreign employees: the 35% rule
A special allowance is granted to certain foreign employees who are assigned
to a post with a domestic employer (i.e. an employer established in the
Netherlands, or an employer not established in the Netherlands who is obliged
to withhold salaries tax on the salary paid to the employee).
If certain requirements are met, then Dutch employers may grant a special
tax-exempt allowance of 35%, which is paid in addition to employees'
salaries. The allowance is calculated on the basis of the salary as
determined in accordance with the provisions of the Wage Tax Act. To obtain
the basis for calculating the 35% allowance the salary is multiplied by a
factor of 100/65. Employer reimbursements of school fees for the attendance
of children at international primary or secondary schools are also exempt
from tax. In addition to the 35% rule, expenses incurred in connection with
employment are reimbursed tax free.
Foreign employees have to be recruited by or seconded to a domestic employer
in the Netherlands. The employer and his employee must first agree, in
writing, that the 35% allowance will be applied. Their joint request for the
application of this allowance must then be submitted to the Private
Individuals Tax Unit (Non-resident Taxpayers) in Heerlen. Once the
application has been approved the 35% allowance is applied from the outset.
The 35% allowance is applicable for a maximum period of 120 months. This
period is reduced by any period of employment with a domestic employer in the
Netherlands, or by any time previously spent by the employee in the
Netherlands, unless more than ten years have elapsed since the end of such
employment, or time spent in the Netherlands.
On the joint request of the domestic employer and the foreign employee the
foreign employee, with a few exceptions, is regarded as a fictitious foreign
taxpayer with regard to the levy of salaries tax, income tax, and wealth tax.
5. Налог на богатство(Wealth Tax)
5.1. Taxpayers: residents and non-residents
Under the present Wealth Tax Act resident natural persons (resident
taxpayers) and non-resident natural persons owning property in the
Netherlands (non-resident taxpayers) are subject to wealth tax if their net
wealth exceeds a certain amount. The rules for the determination of the place
of residence as laid down for income tax purposes are also applicable to
The wealth tax is levied on the total net wealth, which is defined as the
value of the assets less any liabilities. The tax is levied at the beginning
of the calendar year. Assets and debts are taken into consideration at their
market value. Although both husband and wife are liable for taxation the
assets of both are added together. A child's assets are taxed under the
Non-residents are liable for wealth tax only if they own certain assets in
the Netherlands at the beginning of the calendar year. (In this case the net
wealth is defined as the value of the assets less any liabilities in the
Assets in the Netherlands are:
· assets belonging to a Netherlands permanent establishment and
participations (other than through shares) in a domestic business. An example
is the participation of a limited partner in a Netherlands limited
· the following assets not belonging to a permanent establishment in
· immovable property (including immovable rights) within the Netherlands;
· profit sharing rights based on the net profits (not the turnover) of
a company managed in the Netherlands, excepting profit sharing bonds, etc.,
and bonus rights of employees.
Debts in the Netherlands are:
· debts of a permanent establishment in the Netherlands;
· debts secured by a mortgage on immovable property situated in the
Married non-resident taxpayers are required to state their personal net
assets only; a married person's net assets are not added to those of his or
5.2. Tax base and rates
The legal usufruct together with rights and obligations involving regular
payments directly arising from family law, and payments attributed by parents
to their minor children are not taken into account for the purposes of the
The following items are exempted from wealth tax for both resident and non-
· a part of the business assets of the taxpayer, which is:
· 100% when the assets of the business do not exceed NLG 219,000
(1999: NLG 216,000);
· 68% of the assets in excess of NLG 219,000 plus the exemption of NLG
219,000 if the assets of the business exceed NLG 219,000 (1999: 68% of the
assets in excess of NLG 216,000 plus the exemption of NLG 216,000 if the
assets of the business exceed NLG 216,000).
· This exemption also applies to:
· amounts payable by the person to whom the taxpayer has transferred
the ownership of his business;
· the assets of a business which is to be converted into a limited
· the value of "substantial interest" shares in a limited liability
company established in the Netherlands;
· specific subordinated loans granted to a starting entrepeneur.
· Examples of other special exemptions:
· entitlements ensuing from a pension scheme;
· payments ensuing from life annuities that have not yet commenced;
annuities that have already commenced are also exempted to a certain sum;
· entitlements and benefits with regard to sickness, disability or
accidents, accruing to those concerned or the surviving spouse or minors;
· personal belongings such as items of artistic or scientific value,
clothes, food, gold and silver, pearls and precious stones to a total value
of NLG 8,500.
5.2.2. Tax rates
The rate is NLG 7 for every NLG 1,000 of net assets (0.7%). There are two
categories, which are:
· tax class I: single taxpayers;
· tax class II: married taxpayers.
The taxable amount for resident taxpayers is the total net wealth less the
personal allowance. The taxable amount for non-resident taxpayers is the
total domestic net wealth without the deduction of a personal allowance.
The personal allowances for resident taxpayers in 2000 are:
· tax class I : NLG 200,000
· tax class II : NLG 250,000
5.2.3. Special allowances
The following amounts may be added to the above allowances:
I. Old-age allowance
The old-age allowance is intended for taxpayers who have little or no
provision for pension arrangements, but who have assets, which were hitherto
subject to wealth tax in their entirety. As a result of this allowance this
category of taxpayers above the age of 35 will be in a position similar to
those who have pension arrangements that are exempt from wealth tax.
The following amounts may be added to the above allowance:
· single persons over 35: minimum NLG 8,000 and maximum NLG 205,000
· married persons: minimum NLG 13,000 and maximum NLG 292,000
II. 68% rule (for resident taxpayers only)
If in any given year the total income tax and wealth tax due exceeds 68% of
the taxable income for the year then the excess is refunded. For this purpose
the taxable income or net salary of a married, but not permanently separated
couple and the related income tax or salaries tax are attributed to the
spouse with the highest personal income. This provision is not applicable to
minors whose income from assets is taxed with that of their parents.
5.3. Tax returns and assessments
The wealth tax is to be paid annually on the total net wealth on 1 January of
the relevant financial year. The tax is collected by means of an assessment.
The regulations, which are applicable to income tax, are also applicable to
6. Налог на добавленную стоимость(Value Added Tax and Excise Duty)
In the Netherlands value added tax (VAT, in Dutch 'BTW') is levied at each
stage in the chain of production and distribution of goods and services. The
tax base is the total amount charged for the transaction excluding VAT, with
certain exceptions. Due to deductions in previous stages of the chain VAT is
not cumulative. Every taxable person is liable for VAT on his or her turnover
(the output tax), from which the VAT charged on expenses and investments (the
input tax) may be deducted. If the balance is positive then tax must be paid
to the tax authorities; if the balance is negative then a refund is received.
The tax paid by the ultimate consumers of the goods or services is not tax-
deductible. The tax is based on the VAT rate applicable to the price,
exclusive VAT, of the goods or services received.
6.1. Taxable persons
The taxable persons are the persons conducting a business, who are defined as
those who conduct independent business, including natural persons, corporate
bodies, partnerships, associations etc. Combinations of bodies forming a
single financial, organisational, and economic entity can be considered as a
fiscal unit for VAT purposes. In such cases the supply of goods and services
within the unit is not subject to VAT. A public body can also act as a
taxable person if its activities do not involve public duties.
6.2. Tax base
There are four taxable activities:
The supplying of goods and services
The term "supplying of goods" (goods are all physical objects, but also
include electricity, heating, cooling, etc.) is given a broad interpretation.
For example, for VAT purposes the following activities are considered as the
supplying of goods:
· the transfer of ownership of goods under an agreement;
· the transfer of goods on the basis of a hire purchase agreement;
· the delivery of goods by a manufacturer who has manufactured the
goods from materials provided by the consumer;
· the private use of goods by a business;
· the self-supply of goods, if the goods are involved in exempt
transactions for which prepaid tax cannot be deducted, or is only partly
Services are defined as all activities performed for a remuneration that are
not classed as the supplying of goods.
Location of deliveries and services
Although the difference between the supplying of goods and the rendering of
services is usually a purely theoretical one, there is a valid reason for
distinguishing between them with regard to location. Transactions are subject
to the conditions and rates applicable at the location concerned. The
location at which the goods are supplied is defined as the location of the
goods at the time of supply. An exception is made for goods transported in
connection with the supply; in such cases the location of supply is the
location at which the transportation began. Another exception is made for a
series of supplies of imported goods; in such cases the location of all the
supplies is the Netherlands.
The location at which services are rendered is generally deemed to be the
place of residence or of establishment of the person supplying the services.
However there is a separate regulation for certain services: for example for
services involving copyrights and advertising, advice, information, banking,
insurance and the services of employment agencies etc., the location at which
the services are rendered is the place of establishment of the person to whom
the services are rendered. Services involving immovable property are rendered
at the location of the property.
|I.||the supplying of goods,|
|II.||the rendering of services,|
|III.||the acquisition of goods by businesses (since 1 January 1993),|
|IV.||the importation of goods.|
Several types of transactions are exempt from VAT. An exemption means that
tax for the transactions should not be charged, and that prepaid VAT
attributable to those transactions cannot be deducted. Exemptions are
applicable to transactions such as:
· the transfer or rental of immovable property, with certain
exceptions. For example, the delivery of newly-built property until two years
after it is first used, and property when the supplier and recipient have
opted for taxable delivery are taxable; however the possibility to opt for
taxation is restricted to situations in which the property is used for
(almost) wholly taxable purposes;
· medical services;
· services provided by educational establishments;
· social-cultural services;
· most services performed by banks;
· insurance transactions;
· non-commercial activities by public radio and television
· postal services;
· sports (not entrance fees);
· the services of composers, writers and journalists.
6.4. Special arrangements for small businesses (persons) and the
Small businesses run by persons enjoy a tax reduction. If the VAT to be paid
after the deduction of prepaid VAT is less than NLG 4,150 then a reduction is
granted of (NLG 4,150 minus the VAT due) x 2.5. If a small business
consequently does not have to pay any VAT to the authorities then it can, on
request, be relieved of the obligation to keep an administration.
For the agricultural sector, i.e. arable farming, cattle breeding, and
horticulture, a special provision is applicable which is designed to exclude
the agricultural sector from the VAT system entirely. Farmers do not charge
VAT and do not have the right to deduct the prepaid VAT. The purchasers of
agricultural products from these farmers receive a fixed prepaid VAT
deduction of 4.8%. If the tax prepaid by the farmer is more than 4.8% of the
value of his sales then this special provision would put him or his customers
at a disadvantage; in such cases the farmer may then opt for the usual
6.5. Tax rates
The general rate is 17.5%. A reduced rate of 6% is applicable to the supply,
import, and acquisition of goods and services mentioned in Annex 1 to the
VAT-act. The reduced rate is in the main applicable to foodstuffs and
medicines. Other goods and services subject to the lower rate include water,
art, books, newspapers and magazines, materials required by the visually
handicapped, artificial limbs, certain goods and services for agricultural
use, passenger transport, hotel accommodation and entrance fees for museums,
cinemas, sport events, amusement-parks, zoos and circus and some labour
intensive services. The zero rate is intended primarily for exported goods,
seagoing vessels and aircraft used for international transport, gold destined
for central banks, and any activities which may take place within bonded
warehouses or their equivalent. There is also a zero rate for goods, which
are transported to another EU member state on which VAT is levied, because of
the acquisition in that member state.
6.6. The new VAT system in the single European market
The single European market was completed on 1 January 1993. From this date
goods, persons, services and capital may be moved freely within the EU. The
transitional arrangements applicable after this date, for which the 1968
Turnover Tax Act of the Netherlands has been amended, contain the following
Imports are confined to the bringing into free circulation in the Netherlands
of goods from countries outside the EU. The rates to be applied are the same
as those applicable to supplies of foods in the Netherlands. VAT will be
levied either in the same way as import duties or, after the appropriate
licence has been granted, in accordance with the deferred payment system.
In the first situation the customs procedure is applicable. This means that
the tax due must be paid by the declarant when submitting an import
declaration, or that security must be provided for this purpose. In the
second situation the tax due is collected from the business for which the
goods are destined. The time of payment is then deferred until the time at
which the business must submit the periodic domestic VAT tax return. In such
cases the time of payment is coincident with the right to deduct the same
There are exemptions for imports, but these do not affect the right to the
deduction of VAT on input.
|I.||For private persons buying goods in another member state VAT is levied in the country in which the goods are bought (the principle of the country of origin). The exemption on exports from the member state and the obligation to pay VAT on the goods on arrival in the Netherlands are then not applicable.|
|II.||For trade in goods between businesses in member states VAT is levied in the member state to which the goods are transported (the principle of the country of destination) at the rates and under the conditions of that member state. The business supplying the goods applies the zero rate. The business receiving the goods submits a tax return with regard to the goods purchased in another member state. (This transitional arrangement is applicable until the date on which transactions became subject to the country of origin principle).|
|III.||The principle of the country of destination is also applicable to intracommunity deliveries to exempted parties, farmers falling under a lump-sum compensation scheme, and legal entities not liable for taxation (authorities), unless the total value of the goods purchased exceeds the threshold of NLG 23,000 (ECU 10,000)|
|IV.||For mail order transactions or teleshopping involving private persons, exempted businesses, legal entities not liable for taxation, and farmers entitled to a lump-sum compensation scheme a similar provision to that referred to in point III is applicable, but with a threshold of NLG 230,000 (ECU 100,000).|
|V.||The principle of the country of destination is always applicable to the purchase of new, or almost new, motor cars by private persons or businesses in another member state..|
|VI.||Every business making intracommunity deliveries to another member state must submit regular notifications with regard the deliveries subject to taxation in that member state (known as the listing requirement). The business will be required to supply further details if this is necessary for intracommunity checks on the levying of VAT.|
|VII.||Since border controls within the EU for tax purposes have been discontinued the levying of VAT on imports and the zero rate for exports will be applicable only to goods outside the EU.|
6.7. Tax returns and assessments
The period to which returns relate may be monthly, quarterly, or annually,
depending on the amount of VAT due. Almost all VAT returns are prepared and
dispatched by a computerised system. The system checks that the forms are
returned and the amounts in question are paid in good time. The return must
be submitted within one month of the end of the period to which it relates.
The tax owed must also be paid within this period. Returns for which no tax
is due, or a refund is requested, should be submitted within one month.
A significant percentage of retrospective assessments is the result of
returns being submitted too late, or the associated payment not being made in
good time. As mentioned above these are monitored by a computer system, which
automatically prepares a retrospective assessment if a payment is not made,
or a return is not submitted in good time. The system uses information from
returns relating to previous periods to determine the amount of the
assessment for the period in question.
In addition to assessments resulting from the failure to file a return or pay
the tax owed in good time, retrospective assessments are also issued if
checks reveal that too little VAT has been paid. It is possible to object and
appeal against retrospective assessments; however this does not suspend the
obligation to pay the tax deemed to be payable.
7. Налоги на охрану окружающей среды(Environmental Taxes)
7.1. Fuel tax
Fuel tax is levied on mineral oils, coal, natural gas, blast furnace gas,
cokes oven gas and coal gas. Mineral oils are petrol, diesel fuel, heating
gas oil and heavy fuel oil. The tax revenue is estimated as approximately NLG
1,509 million in 2000.
The fuel tax on mineral oils is levied together with excise duty on mineral
oils. Fuel tax on the other fuels mentioned above is due by persons who
extract, produce or import these fuels, and subsequently use them as fuels or
transfer them to others for use as fuels. The number of taxable persons
liable to fuel tax is restricted as the tax is levied primarily on the
manufacturers and importers of fuel.
The rates for the most common fuels on 1 January 2000 are as follows:
All usage other than as fuel is exempt.
|Petrol ||per 1000 l ||NLG 26.07|
|Medium oils ||per 1000 l ||NLG 28.56|
|Diesel oil and the like ||per 1000 l ||NLG 28.76|
|Heavy fuel oil ||per 1000 kg ||NLG 33.57|
|Coal ||per 1000 kg ||NLG 24.28|
|LPG ||per 1000 kg ||NLG 34.34|
0 - 10 mln. m3
> 10 mln. m3
per 1000 m3
per 1000 m3
7.2. Tax on groundwater
Groundwater tax is levied on the extraction of sweet groundwater. This tax
has been levied since 1 January 1995. The tax revenue is estimated at
approximately NLG 360 million for 2000.
The tax is levied on the proprietors of the establishments extracting
groundwater. These are, for example, the manufacturers of drinking water,
farmers, and industries that use groundwater.
For drinking water companies the rate is NLG 0.3530 per m³; for others
the rate is NLG 0.2634 per m³. Rebates are applied for infiltrated
Exemptions are applicable under certain conditions, for example in case of
extraction of groundwater for draining a building site, as well as test-
extractions, extraction for use for sprinkling and irrigating land and
extraction needed to clean groundwater.
7.3. Tax on tap water
The tax on tap water is levied on the deliverance of tap water to a maximum
300 cubic meters per year. The tax revenue is estimated at NLG 215 million
The tax is levied on the tap watercompanies.
The rate is NLG 0.285 per m³.
7.4. Tax on tap water
The tax on tap water is levied on the deliverance of tap water to a maximum
300 cubic meters per year. The tax revenue is estimated at NLG 215 million
The tax is levied on the tap watercompanies.
The rate is NLG 0.285 per m³.
7.5. Regulatory energy tax
The regulatory energy tax is levied on the consumption of natural gas,
electricity and mineral oil products when used as substitutes for gas by
domestic users or commercial establishments. The tax revenue is estimated at
NLG 4,208 million for 2000. The revenues are returned to domestic users and
business by way of reductions in other taxes.
The tax is levied on the energy distribution companies and manufacturers and
wholesalers of mineral oils. These companies pass on the tax to their
Natural gas is taxed to a maximum of 1.000.000 cubic metres per year, with a
tax-free allowance of 800 cubic metres per year. Electricity is taxed to a
maximum of 10.000.000 kWh per year, with a tax-free allowance of 800 kWh. The
rates for 2000 are as follows:
A zero rate applies for fuels used for transport purposes.
Exemptions are for instance applicable for all usage other than as fuel and
for natural gas used to produce electricity.
7.6. Tax on uranium
This tax is levied on uranium-235. The tax was introduced so that nuclear-
generated electricity would be taxed in the same way as fuel-based
electricity. The tax came into force on 1 january 1997. The tax revenue has
been estimated initially at NLG 12 million for 2000.
This tax is due by nuclear energy companies.
NLG 33.17 per gram of Uranium-235.
8. Избежание двойного налогообложения на доход, прибыль и
богатство(Avoidance of Double Taxation for Taxes on Income, Profits and Wealth)
|fuel||unit||cents per unit|
|Natural gas||cubic metre||20.82|
|Light fuel oil||litre||17.43|
The Netherlands has two kinds of arrangements for the avoidance of double
taxation for taxes on income, profits and net wealth, and for inheritance and
gift tax. It has concluded conventions for the avoidance of double taxation
with a large number of countries (see 8.3). If no convention is applicable
then the unilateral provisions as laid down in the 1989 Double Taxation
(Avoidance) Decree of the Netherlands are applicable (see 8.4.). The double
taxation conventions apply for residents of the Netherlands and for residents
of the treaty countries. The above mentioned Decree applies for residents of
the Netherlands, and for residents of the treaty countries. The above
mentioned Decree applies only for residents of the Netherlands.
The Dutch tax system provides for three different methods for avoiding double
taxation on income from foreign sources. Double taxation is avoided by means
of the exemption with progression method, the credit method, or deduction of
foreign taxes as costs. These methods are used under the Decree and, with
only a few exceptions, under the double taxation conventions.
8.2.1. The exemption with progression method
The exemption with progression method is usually used for income tax,
corporation tax and wealth tax. In principle relief is provided for positive
and negative items of income from foreign sources, on a per country basis.
The exemption method involves a reduction of the Dutch tax on total income.
The reduction is calculated as follows:
(foreign income divided by total income; multiply result by the total Dutch
tax due on total taxable income)
If the income from foreign sources exceeds the total income then no full
relief for foreign taxes is provided in the year concerned. In such cases
relief is provided in the subsequent years.
Foreign losses reduce the Dutch tax base in the year in which they arise as
they are offset against the domestic income. However any losses from abroad
which are incurred in the preceding years are deducted from the foreign
income before relief is granted.
|foreign income||x total Dutch tax due on total taxable income|
8.2.2. The credit method
The credit against tax method, or credit method, is usually used for foreign
withholding taxes on investment income such as dividends, interest and
royalties, on a per country basis (a ministerial order concerning the
possibility of choosing between the credit method on a per country basis and
the credit method on an overall basis is in preparation). The tax reduction
amounts to the lower of the foreign withholding tax or the Dutch tax
attributable to the foreign dividends, interest and royalties.
Since the foreign withholding taxes for which credit is allowed are usually
levied on a gross basis, whilst Dutch income tax is levied on a net basis, it
is quite possible that the Dutch tax attributable to the relevant items of
income is not sufficient to provide full credit for the tax levied by the
source country. In such cases the excess foreign taxes may be carried forward
to subsequent years.
Since January 1, 1999 in a few conventions for the avoidance of double
taxation the credit method is also applicable for income from passive
investments derived through a permanent establishment (see 8.4.2).
8.2.3. Deduction as costs
In situations in which no exemption or credit is allowed then any foreign
taxes paid may be deducted as costs related to the relevant income. In
situations in which a tax credit would normally be used then the taxpayer may
opt for non-recognition of the tax credit. This option is applicable to the
year in which the income is received and to the total amount of all
dividends, royalties and interest received in that year. The option will thus
result in a deduction of foreign taxes as costs.