Setting up a new business of expanding the geographical boundaries of your business can be quite challenging. Many entrepreneurs are choosing Netherlands as their desired destination for establishing their business and starting Dutch company Holland.
You may need local support for starting Dutch company in Holland as you are new to the place and not familiar with the legal compliance and other aspects of operating a business. There are local agencies such as CompanyNL that can extend their unparalleled support in establishing your Dutch business in Holland.
Here’s a look at all that you must know about tax structure in Netherlands:
It is imperative to pay taxes if you earn in Netherlands irrespective of whether you are a Dutch citizen or not. The tax is collected ted by Dutch tax office in a variety of ways. Let’s explore them.
If you have plans for starting Dutch company in Holland, this company is supposed to pay tax on its income and has to declare its income by filing an annual tax return. You can pay the tax online as well by consulting the tax advisor.
It is the tax that is contained by the employer from the employee’s salary so that he doesn’t need to pay it later as income tax. However, this is applicable only if your work as a salaried employee in a company.
VAT Sales tax
The tax office in Netherlands collects taxes on sales. Every business is supposed to add sales tax to the price of their goods. Businesses must make the sales tax declaration every quarter for the amount earned and spent on sales tax.
Annual tax return
You will be required to file for annual tax return to the Dutch tax office.
Some Facts about Taxation
- The Dutch fiscal year is from 1st January to 31st December. The tax office will send you a letter asking to file return for previous year. In case of any confusion, you can connect with the tax office or visit them.
- The deadline for filing tax return is 1st March to 30th April. You can ask for an extension but if you haven’t, not filing return till 1st May can lead to paying a fine.
- If you have a source of income from another country or you reside outside Netherlands but have a Dutch income, you need to file the annual tax return.
CompanyNL can not only help in starting Dutch company Holland but also complying with the tax obligations.