What are the tax advantages of the Netherlands? Since 2007, the corporate income tax in the Netherlands has been reduced to 25.5%, which is already very low compared to other EU countries. This is mainly due to certain features of the Dutch tax system that are very beneficial to international tax planning. This is reflected in the following aspects:

Income from shareholdings is tax-free, that is, no corporate income tax is levied on dividends from qualified shareholdings and capital gains from the transfer of qualified equity.

There is no withholding tax on interest and license fees paid abroad from the Netherlands.

Extensive tax treaties help companies reduce or reduce various withholding taxes and avoid double taxation. l Taxpayers can obtain advance clarification from the tax authorities regarding future tax treatment.

30% tax-free allowance for foreign employees.

The tariff and value-added tax deferral policy effectively alleviates the pressure on corporate liquidity.

Being an EU member state benefits from various EU directives (such as the Directive on Parent Companies and Subsidiaries and the European Mergers Directive).

Tax incentive policies related to specific project types, such as only 10% tax on income from innovative patents and intellectual property rights.

For new investments that are energy-saving or environmentally friendly, a certain percentage can be deducted from the total investment when determining the tax base.

A reduction in income tax on wages related to R&D activities is available.

There is no profit distribution requirement.

No exchange controls.

The above are some of the tax reduction standards that the Netherlands has provided to companies since 2007.