Netherlands Information: Low-Tax and Incentive Regimes

Netherlands News Coverage

- 03/01/2012 The Seychelles Adds Guernsey TIEA
- 28/12/2011 Dutch Bank Tax Clarified
- 15/12/2011 Netherlands, Japan Tax Treaty Ratified
- 13/12/2011 Hong Kong's Inward FDI Soars
- 01/12/2011 EC Opposes Dutch Rules On Inheritance And Gift Duties

More Netherlands Tax News »

Netherlands Tax Treaty Updates from TreatyPro

Treaty Update: Netherlands - Slovenia
6/2/2012
According to preliminary media reports, the Netherlands and Slovenia signed a TIEA on January 17, 2012.

Treaty Update: Curaçao - Netherlands
20/12/2011
According to an announcement by the Dutch Ministry of Finance on December 12, 2011, authorities from Curacao and the Netherlands have agreed to a draft DTA.

Treaty Update: Japan - Netherlands
12/12/2011
The Netherlands Ministry of Finance has confirmed that a new DTA between the Netherlands and Japan has been ratified following the exchange of official notes on December 1. The DTA will become effective from January 1, 2012.

More Netherlands Tax Treaty Updates from TreatyPro »

Netherlands Knowledge Base

- NETHERLANDS INDIVIDUAL NON-RESIDENT TAXATION
- NETHERLANDS CORPORATE NON-RESIDENT TAXATION
- NETHERLANDS SPECIAL EXPATRIATE FISCAL REGIME
- NETHERLANDS DUTCH HOLDING COMPANIES
- NETHERLANDS INTEREST CONDUIT COMPANIES
- NETHERLANDS ROYALTY CONDUIT COMPANIES
- NETHERLANDS ANTILLES AND ARUBA
- NETHERLANDS THE FISCAL UNIT
- NETHERLANDS TAXATION OF FOREIGN BRANCHES

Although the Netherlands has a sophisticated tax system with high tax rates some aspects of its fiscal system are extremely attractive and make it the ideal location in which to base international trading operations. Attractive fiscal incentives are further enhanced by a complex network of double taxation treaties (few of which contain any anti avoidance provisions) and by the existence of a procedure of advance tax rulings whereby the tax authorities who are autonomous and approachable can at short notice specify the fiscal consequences of certain business structures provided that material financial interests are involved and the propositions are reasonable.

The Dutch government included a series of tax incentives in its 2010 Tax Plan, specifically designed to make enterprise simpler and therefore more attractive to entrepreneurs.

Key tax incentives contained in the government’s 2010 Tax Plan include the following measures:

• In the area of research and development (R&D) the "patents box" scheme will be replaced by an "innovation box" scheme for innovative entrepreneurs. As a result, income derived from R&D will only be taxed at a rate of 5%, and the ceiling for the scheme will be removed.
• In order to enable entrepreneurs to increase their cash flow, they will have the option of offsetting losses incurred in 2009 and 2010 against profits made in the three previous years. The system of accelerated depreciation will continue in 2010.
• The profit exemption for small and medium-size businesses is to be increased by 1.5% to 12%. In addition, entrepreneurs will no longer have to devote a minimum period of time to their business in order to qualify for the measure, enabling individuals to carry on a business alongside salaried employment.
• In a bid to foster business growth, the small-scale investment tax credit (KIA) is to increase by 29%.
• A number of tax incentives designed to benefit directors of a company in which they are also major shareholders (DGAs) are contained in the plan. These initiatives include extending the measure granting exemption from income tax to the transfer of a business by a DGA to a co-entrepreneur and relaxing customary pay arrangements.

The 2010 Tax Plan also includes a number of separate legislative proposals, designed to simplify certain tax rules and reduce the administrative and regulatory burden. The main simplifications are as follows:

• A new work-related costs scheme will be introduced. An exemption of 1.5% of the wage bill for tax purposes is to replace a cumbersome system of numerous tax-free allowances and benefits in kind from employers.
• From 2010, employers will no longer be required to deduct social insurance contributions and healthcare insurance contributions from pay to employees aged under 23 who earn less than the minimum salary. From 2011, this will also apply to the levying of wage withholding tax.
• A standard definition of wages for wage withholding tax, various social insurance contributions and income-related healthcare insurance contributions will be introduced, representing a saving for employers of around EUR380m.
  

Topic: Lowtax.net General
Thread Title
lowtax.net text says: "The normal minimum capital requirement is KYD42,000." does this mean that an incorporator has to pay KYD42,000 to the government or keep it in a cayman bank or what? thank you in advance for your reply
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Topic: Lowtax.net General
What's the cheapest offshore company formation service?
I'm from the EU, and would like to open a company (either inside or outside the EU) that would allow me not to pay VAT when buying Internet services from the EU (typically from Germany). It would also provide me with a more professional name to hold all my domains and Internet services, and help me keep my home address private.

Can anyone suggest a good service that will take care of this? Cheapest meaning it shouldn't be too expensive to open AND maintain, as I won't really be trading anyway (using services for my own benefit at the moment, so I also don't need bank accounts etc. for the company)...Anto
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Topic: Lowtax.net General
Hi there, I have Polish citizenship...
Hi there, I have Polish citizenship and have been working on a contract with a British company in Saudi Arabia where I will be staying for over two years or even more. My family (wife and two kids) are residing in Poland, which means that I am classified by Polish tax law as a Polish tax resident even if I work offshore. The question is how can I rescue my money earned in the KSA from the draconic taxes in Poland. Some nationals like British are exempt from the home tax if they earned the money in KSA. Waiting for any creative solutions - and can pay for the professional and workable advice.
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Topic: Lowtax.net General
Help: Offshore Business Account with Good Wire Transfer Facility
Hello friends,

I am in deep trouble here. SO I am from India and into performance marketing [online lead generation business] from last 5 yrs almost and last year I started one performance marketing company here in India. It has around 70 good active affiliates and all of them do good volume of business. It was going smooth and I was sending bank wires regularly to my affiliates from my indian business account until I got a freaking letter from income tax department that I need to pay 30% tds [tax deduction at source] for every outgoing foreign remittance [please note its not in profit but every outgoing remittance in foreign currency] and that brings full stop to my business. Right now I am sending those payments through a friend's business account but I know very soon he is also going to have that warning letter.In India outgoing foreign remittance are very sensitive issue for governments , I guess due to economy.

So, I need solution. I tried US LLC but they need that I go there in person and open the business account and I need someone with 'money transaction' authority in the USA from my bank account since am from India. And I don't have any one so much reliable in the US.

So, only option left is offshore business account in Panama [?] or British virgin Island or can anyone suggest me? What I need is lots of incoming and outgoing wire transfers facility every month. Like 40 incoming wire transfers from USA and UK [from advertisers] and 240 outgoing international wire transfers every month [to affiliates] so that I can concentrate on my business instead of taking tension about these silly issues. Do you know panama/British virign Island/whatever good offshore location banks allow to do it online without rising issues?

Thank you in advance.Jit Uppal
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Topic: Lowtax.net General
REDOMICILE OF ISLE OF MAN CO
Could someone tell me to what juristictions can an Isle of Man Exempt Company be re-domiciled which will have cheaper annual fees i.e Dominica, Belize e.t.c and what documents are needed to do so Thank you
Peter
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Topic: Lowtax.net General
first geneva wealth management
Hi, has anyone had any dealings with this company First Geneva Wealth Management based in Switzerland and London or can you direct me to a companies register or find the names of the directors.
Many thanks in advance. MLM
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Topic: Lowtax.net General
Has anyone invested in the Aruba World Trade Center
Has anyone invested in the Aruba World Trade Center through Solaris Global Partners and if so have you any idea where we currently stand.

Many thanks

Irish Invertor

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Topic: Lowtax.net General
Offshore Legal Resources
We are pleased to announce the creation of the Offshore Law Directory.
The Offshore Law Directory is a human edited directory for Law Firms and Lawyers providing Offshore Legal Services.

www.offshorelawdirectory.com
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Topic: Lowtax.net General
Offshore Company Formation and Bank Account
Hi,
I wish to setup an Offshore company and get a basic Business Banking account with Internet+Phone+VISA card facility.

I mainly do online business and most of them don't need VAT. So VAT is not my requirement.

All I need is the least expensive Offshore company formation and least expensive Bank account.

I've been doing research for sometime and narrowed down on few choices:
IBC: Belize, Marshall Islands, Isle of Man
Bank: Isle of Man, Latvia

For banking again I need a basic bank account with very less initial deposit and fee.

Could anyone suggest me any affordable solution?

I see that company formation services are so expensive. It takes 40 odd quid to register UK company.

Any help will be appreciated.

Most of my businesses are online and I end up paying huge UK Corporation tax which can be easily saved by setting IBC and Offshore bank account.Jack
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Topic: Lowtax.net General
investment portfolio in Australia while residing in Italy
I am an Australian living in Italy with Italian residency. I have been here for 5 years and am classed in Australia as a "non-resident" of Australia since I have been out of the country for more than 180 days. If I begin an investment portfolio in Australia,what are the implications of the earnings in ITALY? Will I be taxed on these earnings in Australia and Italy? Please let me know if you are a tax expert or someone who has just done the same thing. I want to know how to verify the information and who I can talk to here in Italy but be able to speak in English. Thanks!Bu
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