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Netherlands

Overview

Last reviewed - 06 July 2020

The Netherlands, a country located in Northwest Europe, is bordered by the North Sea to the north and west, Belgium to the south, and Germany to the east. The Netherlands is divided into 12 provinces, with Amsterdam as the capital. The official language of the Netherlands is Dutch, and the currency is the euro (EUR).

Netherlands, the Dutch United Provinces, declared their independence from Spain in 1579. During the 17th century, they became a leading seafaring and commercial power, with settlements and colonies around the world. After a 20-year French occupation, a Kingdom of the Netherlands was formed in 1815. In 1830, Belgium seceded and formed a separate kingdom.

The Netherlands was a founding member of the North Atlantic Treaty Organization (NATO) and the European Economic Community (EEC) (now the European Union [EU]), and participated in the introduction of the euro in 1999.

The Dutch economy is noted for stable industrial relations, moderate unemployment and inflation, a sizable current account surplus, and plays an important role as a European transportation hub. A modern, industrialised nation, the Netherlands is also a large exporter of agricultural products. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanised agricultural sector employs only 2% of the labour force but provides large surpluses for the food-processing industry and for exports.

On 10 October 2010, the Caribbean Netherlands (i.e. the islands of Bonaire, Saint Eustatius, and Saba) became part of the Netherlands after the dissolution of the Netherlands Antilles. The islands, however, maintain a tax regime that is different from that of the mainland Netherlands (in Europe).

PwC is a leading professional service organisation in the Netherlands. Within PwC, we develop and implement custom solutions according to the needs of both domestic and international customers.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

25

Corporate income tax (CIT) due dates
CIT return due date

Generally five months after the end of the company’s fiscal year.

CIT final payment due date

Tax is due within two months of the date of the assessment.

CIT estimated payment due dates

In principle, within two months but the taxpayer may choose to pay in monthly installments.

Personal income tax (PIT) rates
Headline PIT rate (%)

49.50

Personal income tax (PIT) due dates
PIT return due date

1 May

PIT final payment due date

The PIT payment is due within six weeks after the date of the assessment notice.

PIT estimated payment due dates

Estimated income tax payments are due in terms of payments of one month in case of a provisional tax assessment that is issued in the year to which the tax assessment relates.

Value-added tax (VAT) rates
Standard VAT rate (%)

21

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: 15 / 0 / 0;

Non-resident: 15 / 0 / 0

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

Capital gains are subject to the normal CIT rate (25%). Capital gains on qualifying participations are tax exempt under the participation exemption.

Individual capital gains tax rate (%)

NA

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

The Netherlands have no tax on wealth, but they do have a tax on a fixed return on wealth. The headline effective tax rate is 1.60% on the worth of a person's savings and investments.

Inheritance and gift tax rates
Inheritance tax rate (%)

40

Gift tax rate (%)

40

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.