Netherlands Corporate Tax - Guide for International Expansion

Are you considering expanding your business to the Netherlands? Understanding the Dutch corporate tax system is essential for making informed decisions about your international operations.

The Netherlands offers a competitive business environment with a well-structured tax system, making it an attractive destination for international companies. Whether you're planning to establish a subsidiary or simply need to understand your tax obligations, this comprehensive guide will help you navigate the complexities of Dutch corporate taxation. And if you're looking for efficient ways to manage international payments and reduce currency exchange costs, Wise Business can help streamline your cross-border financial operations.

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This publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Wise Payments Limited, its subsidiaries or affiliates, and it is not intended as a substitute for obtaining business advice from a tax advisor or any other professional.

Netherlands Corporate tax rate in 2025

The Netherlands operates a two-tier corporate income tax system with rates of 25.8% for profits above €200,000 and 19% for profits up to €200,000. This progressive structure makes the Netherlands particularly attractive for smaller businesses and startups, as they benefit from the lower rate on their initial profits.¹

For companies with taxable profits exceeding €200,000, the effective tax rate becomes a blended rate. For example, a company with €500,000 in taxable profits would pay 19% on the first €200,000 (€38,000) and 25.8% on the remaining €300,000 (€77,400), resulting in a total tax liability of €115,400.¹

The Netherlands also offers various tax incentives and deductions that can significantly reduce the effective tax rate. The Innovation Box regime allows qualifying companies to apply a reduced rate of 9% on profits derived from self-developed intangible assets.² Additionally, the country has an extensive network of tax treaties with over 95 countries, helping to avoid double taxation and reduce withholding taxes.³

Companies resident in the Netherlands are subject to corporate income tax on their worldwide income, while non-resident companies are only taxed on Dutch-source income. A company is considered tax resident if it is incorporated in the Netherlands or if its place of effective management is located there.⁴

Read more about Corporate Tax Planning best practices

How to pay corporate tax in the Netherlands

Corporate tax payments in the Netherlands are managed through the Dutch Tax and Customs Administration (Belastingdienst), which requires companies to file annual returns and make advance payments throughout the year. The system is designed to ensure steady cash flow for the government while providing businesses with predictable payment schedules.⁵

Dutch companies are required to make quarterly advance payments (voorlopige aanslagen) based on estimated annual profits.⁵ The annual corporate tax return must be filed within five months after the end of the fiscal year, with the possibility of a three-month extension upon request.^{6 7}

Late payment penalties are significant in the Netherlands. If payments are made after the due date, the tax authority charges interest at a rate that is updated regularly - currently around 4% per annum (invorderingsrente).⁸

Let's calculate the annual tax liability for a company with a turnover of €1.5 million and assuming a profit margin of 10%, resulting in taxable profits of €150,000:

Since the profits (€150,000) fall entirely within the lower tax bracket, the calculation is straightforward:

€150,000 × 19% = €28,500

This company would owe €28,500 in corporate income tax annually, payable through quarterly advance payments of approximately €7,125 each.

When expanding your business to The Netherlands, the right financial tools will make the process smoother. Using a platform like Wise Business makes it easy to expand internationally with local EUR account details. A multi-currency account allows businesses to pay for incorporation costs, registration fees, and government taxes in local currency without paying high exchange rate fees.

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Tax Compliance in the Netherlands

Some practical steps to keep your company compliant with Dutch tax regulations:

• Register for taxes automatically: When registering your business with the Netherlands Chamber of Commerce (KVK), your details are also passed to the Netherlands Tax Administration (Belastingdienst). This ensures your company is set up for corporate tax, turnover tax (VAT), payroll tax, and other applicable levies.
• File your corporate tax return on time: Private and public limited companies (BV or NV) must file a corporate income tax return annually. If your fiscal year matches the calendar year, the Netherlands corporate tax return due date is June 1st of the following year.⁹ For a split fiscal year, the return must be filed within five months of the year-end.
• Stay on top of VAT obligations: Companies must file VAT returns online using their VAT number. The Tax Administration informs businesses of the frequency: monthly, quarterly, or annually, with quarterly filing being the most common.

Awareness of the Netherlands corporate income tax rate and deadlines will reduce risks and ensure smooth operations under the NL corporate tax rules.

International Expansion to the Netherlands

The Netherlands is one of Europe’s most attractive locations for international expansion. Its central position gives companies direct access to over 500 million consumers. Around 95% of Europe’s most lucrative markets can be reached within 24 hours from Amsterdam or Rotterdam.¹⁰ The Port of Rotterdam is Europe’s largest seaport, and Schiphol Airport is one of the world’s best-connected airports.

Combined with high-speed rail, road, and waterway links, these create excellent global trade and distribution opportunities. The country is also ranked the second most globally connected by the DHL Global Connectedness Index 2024.¹¹

The Dutch economy is strong and stable. It has a GDP of $1.27 trillion and a per capita GDP of $70,480, higher than the average for advanced economies. Growth in this region remains steady at 1.4%.^{12 13} The labour market is tight, with unemployment at only 3.8%. The Netherlands also ranks 5th in the Global Talent Competitiveness Index. Dutch workers are known for advanced digital skills, and the country has the world’s highest English proficiency among non-native speakers.¹⁴

Apart from these factors, the corporate tax system of the Netherlands adds to its overall appeal. Many tasks, such as filing and reporting, can be managed through corporate tax online services. Meanwhile, the corporate income tax in the Netherlands is structured to encourage investment, so foreign businesses often find the framework favourable.

Steps to set up a business in the Netherlands include:

1. Do market research to test the feasibility of your idea. The KVK Company Counter can help check competitors in your region.
2. Select a unique name and business structure.
3. Register your company with the KVK Business Register. Details are passed on automatically to the Dutch Tax Administration.
4. Keep accurate records, which form the basis for your tax returns.

ThisWise overview explains the Dutch banking landscape and includes tips for setting up a business or personal account. It also highlights how a multi-currency alternative like Wise Business can reduce cross-border banking costs. It could help manage corporate tax accounting and corporate tax online tasks.

Discover the top 5 best Corporate Tax softwares

Incorporation of Business in the Netherlands

Companies must register with the Dutch Chamber of Commerce (Kamer van Koophandel, KVK) to incorporate a business in the Netherlands. After registration, the KVK automatically shares your details with the Dutch Tax Administration. At this point, every business must be familiar with the Netherlands corporate tax return due date, as proper planning avoids penalties and ensures smooth filing.

When setting up a company, you need the following information:^{15 17}

• Company name: A unique name that does not conflict with existing registrations.
• Legal structure: You must decide the entity that best fits your business.
• Registered office: An address located in the Netherlands.
• Directors and shareholders: Details of the individuals managing and owning the company.
• Business records: Dutch law requires accurate bookkeeping to support annual reporting and the calculation of corporate tax in the Netherlands.

Dutch company law does not require a local or Netherlands-based director when incorporating a BV (private limited company). However, companies must provide a registered office in the Netherlands to receive official communications. If the business address differs from the director’s residential address, proof, such as a lease agreement, land registry document, or formal consent, is required.

Business entities in the Netherlands

Here are the main types of entities available for incorporation:

• Eenmanszaak (Sole Proprietorship): A simple structure for entrepreneurs. Easy to set up, but the owner is personally liable for business debts.
• Besloten Vennootschap (BV – Private Limited Company): The most common entity for foreign investors. It offers limited liability for shareholders, requires at least one shareholder, and has flexibility for small and large businesses.¹⁶
• Naamloze Vennootschap (NV – Public Limited Company): Designed for larger businesses aiming to list shares on the stock exchange. It requires a minimum share capital and at least two directors.
• Vennootschap Onder Firma (VOF – General Partnership): Two or more partners run the business and share liability. This is common for small or family businesses.
• Commanditaire Vennootschap (CV – Limited Partnership): Includes both general partners, who manage the business and have full liability, and limited partners, who invest but have limited liability.
• Stichting (Foundation) and Vereniging (Association): Popular for non-profit, charitable, or social purposes.

Once your entity is incorporated, the Dutch Tax Administration applies the corporate tax rate in the Netherlands to profits. Currently, the Netherlands corporate income tax rate is structured progressively to remain competitive in Europe. Companies must comply with NL corporate tax obligations and submit accurate records for their annual filings.

International corporate tax best practices

Managing international corporate tax obligations requires a strategic approach that balances compliance with tax efficiency. Companies operating across multiple jurisdictions should prioritise staying current with local tax laws and maintaining transparent, well-documented financial records.

Establishing proper legal entities in each operating jurisdiction is fundamental to tax compliance. This includes completing all required registrations, obtaining necessary tax identification numbers, and ensuring ongoing compliance with local filing requirements. Regular consultation with local tax advisors helps companies navigate complex regulations and avoid costly penalties.

The Netherlands' extensive double taxation treaty network provides significant opportunities for tax optimisation. Companies should carefully review applicable treaties to understand available benefits, such as reduced withholding tax rates on dividends, interest, and royalties. The Dutch participation exemption regime also allows qualifying shareholdings to be held tax-free, making the Netherlands an attractive location for holding companies.

Transfer pricing documentation has become increasingly important, particularly with the implementation of OECD guidelines and country-by-country reporting requirements. Companies must ensure that intercompany transactions are conducted at arm's length and properly documented to withstand tax authority scrutiny.

Take the complexity out of international expansion with Wise Business

Researching corporate tax is a crucial step when expanding your business into a new country. The next step is setting up the financial infrastructure to handle the complexities of operating across borders, from managing multi-currency cash flow to mitigating FX risk.

The Wise Business account provides the financial tools to make your international expansion to the Netherlands efficient and simple. It's the one account for managing your money globally.

With a Wise Business account, you can:

• Pay suppliers and initial fees: Pay suppliers, global payroll, and one-off incorporation costs in the local currency.

• Get paid like a local: Use local account details for 8+ major currencies to easily receive payments from customers or investors.

• Manage your money across borders: Hold and exchange 40+ currencies in one account, always with the mid-market exchange rate and low, transparent fees.

• Streamline your accounting: Integrate with tools like Xero or QuickBooks to simplify tracking your company's international finances.

• Empower your team: Provide multi-user access for your finance team and issue expense cards for international spending.

Wise is designed to support every step of your journey, from paying your first registration fee to receiving international payments and managing your global treasury.

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FAQs - Corporate tax in Netherlands

Who is liable for corporate tax in the Netherlands?

All companies incorporated in the Netherlands are liable for Dutch corporate income tax on their worldwide income. This includes Dutch BVs (private limited companies), NVs (public limited companies), and other corporate entities. Foreign companies are subject to Dutch corporate tax only on income derived from Dutch sources, such as income from a permanent establishment or Dutch real estate.

Partnerships and sole proprietorships are generally not subject to corporate income tax, as their profits are taxed as personal income of the partners or owners. However, certain investment funds and cooperatives may be subject to corporate tax depending on their structure and activities.^{18 19}

Are there any tax incentives for businesses in the Netherlands?

Yes, the Netherlands offers several attractive tax incentives for businesses. The Innovation Box regime provides a reduced tax rate of 9% on profits derived from qualifying intellectual property developed in-house. The Research and Development (R&D) tax credit (WBSO) allows companies to deduct wage costs and other expenses related to R&D activities.

The Netherlands also offers accelerated depreciation for certain assets, environmental investment deductions, and various regional incentives. Start-up companies may benefit from the starter's exemption, which provides relief from certain tax obligations during the initial years of operation.

What is the tax treatment of dividends in the Netherlands?

Dividends received by Dutch companies from qualifying participations (generally shareholdings of at least 5%) are exempt from corporate income tax under the participation exemption regime. This makes the Netherlands attractive for holding company structures.

Dividends paid by Dutch companies to shareholders are subject to withholding tax at a rate of 15%, though this may be reduced or eliminated under applicable tax treaties. The withholding tax rate can be as low as 0% for dividends paid to qualifying EU parent companies under the EU Parent-Subsidiary Directive.²⁰

What is the process for registering for corporate tax in the Netherlands?

Companies must register with the Dutch Tax and Customs Administration (Belastingdienst) within four weeks of incorporation or commencing business activities in the Netherlands. Registration can be completed online through the government's business registration portal or by visiting a local tax office.

The registration process requires providing company details, business activities, expected turnover, and contact information. Upon registration, companies receive a tax identification number (RSIN) and are enrolled in the appropriate tax regimes, including corporate income tax, VAT (if applicable), and payroll taxes.

What are the common pitfalls to avoid regarding corporate tax in the Netherlands?

One of the most common mistakes is failing to make timely quarterly advance payments, which can result in significant interest charges and penalties. Companies should also ensure proper documentation of transfer pricing policies, as Dutch tax authorities increasingly scrutinise intercompany transactions.

Another frequent pitfall is misunderstanding the participation exemption requirements, which can lead to unexpected tax liabilities on dividend income. Companies should also be aware of the substance requirements for claiming treaty benefits, as the Netherlands has implemented anti-abuse measures to prevent treaty shopping.

Finally, businesses often underestimate the complexity of Dutch tax compliance and attempt to manage it without professional assistance. Given the technical nature of Dutch tax law and frequent regulatory changes, engaging qualified local tax advisors is essential for maintaining compliance and optimising tax positions.

Sources used in this article:

1. Corporate Income Tax Netherlands 2025
2. How to Use the Innovation Box
3. Tax Advice Relating to Tax Treaties
4. PwC Tax Summaries: Netherlands Corporate Taxes
5. PwC Tax Summaries: Netherlands Tax Administration
6. PwC Quick Charts: Corporate Income Tax Due Dates
7. Applying for a Tax Filing Extension
8. How Much Collection Interest Do You Pay?
9. Filing Corporate Income Tax Return
10. Why Set Up a Business in the Netherlands
11. Harnessing the Advantages of the Netherlands for Business Success
12. IMF Netherlands Country Profile
13. IMF Advanced Economies Data
14. Why Invest in the Netherlands
15. Step-by-Step Plan: How to Start a Business in the Netherlands
16. A Practical Guide to Entity Incorporation
17. Registering Your Business in the Netherlands
18. Global Tax Guide to Doing Business in the Netherlands
19. Filing Your Corporate Tax Return
20. Dividend Tax in the Netherlands

Sources last checked 02/09/2025