A Dutch company is subject to 25.5% corporate tax ("vennootschapsbelasting") on its worldwide profits. Certain items of income, however, are exempt from tax and certain costs are non-deductible.

Worldwide profits

The worldwide income of a Dutch company is taxable income for Dutch corporate tax purposes. Costs are tax deductible. Thus, a Dutch company is subject to Dutch corporate tax on its worldwide profits.

Rate

The 2011 Dutch corporate tax rate is applied at 20% for the taxable amount up to and including EUR 200,000. For the excess taxable amount the rate is 25.0%.

Exemptions

Certain items of income are exempt from Dutch corporate tax. The most important items of income that are exempt are:

• capital gains and dividends derived from qualifying subsidiaries ("participation exemption");
• income attributable to a foreign business enterprise ("permanent establishment").

Participation exemption

Capital gains and dividends derived from a qualifying subsidiary are fully exempt from corporate tax in the Netherlands ("participation exemption"). A subsidiary qualifies for the Dutch participation exemption when:

• the subsidiary is an active company; and
• the Dutch parent company holds an interest of at least 5% in such company.

Foreign Branch

Income received by a Dutch company from a foreign branch is exempt from Dutch corporate tax provided such branch is a permanent establishment or representative.

Tax haven

In 2009 the White House

White House

The White House is the official residence and principal workplace of the president of the United States. Located at 1600 Pennsylvania Avenue NW in Washington, D.C., the house was designed by Irish-born James Hoban, and built between 1792 and 1800 of white-painted Aquia sandstone in the Neoclassical...

issued a press release in which The Netherlands were mentioned as tax haven.
According to various NGO's the Netherlands "can be seen as an intermediary tax haven for foreign corporations".

External links

• Dutch Tax and Customs Administration