The Netherlands has long been a favorite home for foreign investors. It has a stable and successful economy and a trade and investment policy that’s one of the most open in the world.
- CORPORATE INCOME TAX (CIT): The standard rate is 25% (or 20% on taxable profit up to EUR 200,000.) With Advanced Tax Ruling effective CIT rate can be brought down to 5%.
- INCOMING DIVIDENDS: 0% if Participation Exemption applies.
- CAPITAL GAINS TAX (CGT): 0% if Participation Exemption applies.
- WITHHOLDING TAX:
ROYALTIES: No withholding tax on royalties
DIVIDENDS: 0% under EU Parent Subsidiary Directive and/or when participation exemption applies. Withholding tax rate on dividends paid to non-EU entities is 15% unless reduced by the treaty.
INTERESTS: No withholding tax on interests.
- BILATERAL TAX TREATIES with 95 countries including Hong-Kong, Cyprus, Malta
- VALUE ADDED TAX (VAT). EU VAT regime. The standard rate for inland sales is 21%.
DUTCH BV AS HOLDING COMPANY
For a long time The Netherlands have been acknowledged as Preferred Holding Jurisdiction as they grasped the idea of elimination of the double taxation on investment profits and implemented a „participation exemption” or holding regime.
- No minimum holding period
- No corporate tax on dividends arrived to Dutch holding company
- Capital gains on sale of shares are not taxed.
Participation Exemption applies if:
- Dutch Holding Company holds at least 5% of subsidiary’s shares, AND
- Subsidiary is a trading company or subsidiary is not held as a portfolio investment
- OR, Subsidiary is subject to “tax test” – f.e. standard corporate tax rate is at least 10%
- OR, Subsidiary is subject to “asset test” – passive assets must be less than 50%
There is no minimum share capital requirement for incorporations in Florida.
There is no requirement for a company registered in Florida to file accounts, director registers or shareholder registers.
- Modern and efficient multilingual banking & financial services sector;
- Excellent air and sea connections and telecommunications services;
- Professional, reputable and efficient Government and Tax Authorities;
- A mature professional services sector;
- Very low expense level (fees) for financial and professional service provision compared to other Jurisdictions. The difference is more evident in the case of professional service recurring costs (administration, accounting & tax compliance) are estimated to be at 35- 40% of Western European rates.