Dutch Company Formation

Reduced corporate income tax rates and state initiatives directed at reducing the danger of non-payment from clients, makes Dutch company formation an increasingly attractive proposition.

The Netherlands has long been a home for investors and these government policies increase the charm of businesses considering setting up business in Holland. Because of steady and productive market and also a trade and investment policy that’s only one of the most available in the planet, thousands of international businesses have experienced the many advantages of Company Incorporation in the Netherlands.

Netherlands Corporate Tax Income Lowered to 20 percent

In order to invigorate the market, the corporate income tax rates are reduced to 20% over the EU200,000 gain in the years 2010 and 2009. Any extra gains will be taxed with 25.5%.

On account of the increasing rivalry between nations in Europe to draw foreign investors, it’s anticipated that corporate income taxation will remain in a minimal level for the years following 2010. In the present time that the Netherlands has one in Western Europe that shows their commitment to draw Business Formation investment.

The Netherlands Is a Tax Paradise

Although Employees may not agree on this, the Netherlands is a tax heaven for companies seeking Business Incorporation.

The factors driving this are:

  • Dividends and capital gains from subsidiary companies Aren’t taxed
  • There are no withholding taxes on outgoing interest and exemptions
  • Tax treaties with nearly 90 nations reduces dividend withholding tax, often!
  • Rulings from the tax authorities provides certainty of (non ) taxation of your action Income from group financing activities is taxed at just 5 percent (“group interest box”)
  • The attractive low company tax rate of just 20 percent (earnings greater than EUR200,000: 25.5percent )
  • The centre that is 30% lowers the wage taxation for employees that are ex-patriate
  • Frequent importers Don’t Have to pay VAT in their imports (“post 23 center”)
  • Non-working spouses of workers get a tax refund of over EUR2,000
  • Certainly, the Netherlands welcomes overseas investors considering Dutch Business Formation as part of a growth application.

Government offers warranty for danger of non-payment

The dangers of non-payment by firms has increased. Because of this, auto insurance companies have reduced the insured credit limitations. This hampers business to business transactions. To excite trading action, the government has introduced a temporary state insurance.

Businesses having a credit insurance coverage is now able to ask for an increase of their credit limitation that is reduced. The government covers as many as two times the credit limit of the insurance carrier more than the credit limitation.

Author: Kristen Barrett