On Queen’s Speech, ‘Prinsjesdag’ in Dutch, the new Dutch cabinet Rutte III pronounced its ambitious Tax Plan 2018. Over the last months, the Tax Plan instigated many discussions and far more confusion. The 19th of December, the final ruling of the First Chamber took place. Here, you may find an overview of the actual fiscal changes that will go into effect on January 1, 2018.
Do you or your clients offer services to foreign customers? Does your company provide services abroad? Then VAT compliance can be quite a hurdle. On one hand, the services were delivered by a company settled in the Netherlands. The beneficiary of those services, on the other hand, is situated abroad. This makes filing taxes a confusing affair. Continue reading →
The new year usually comes with new resolutions and plans. This isn’t any less true for the Dutch government. It plans on several law adjustments that will be in effect starting January 1, 2018. Among these adjustments are tax changes.
The resolution behind these changes is the aim to improve the Netherlands’ fiscal climate. In order to achieve this ambitious plan, the government will adapt corporate income tax, dividend tax and VAT. Furthermore, there are several other rearrangements concerning multinationals. The most relevant of tax changes are discussed below.
First of all, the government hopes to attract foreign entrepreneurs by lowering the corporate tax rates. Starting January 2019, the rates will decrease with 1.5%-points. By 2021, this should result in 16% of taxable profit up to EUR 200 000 and 21% of the taxable profits exceeding this limit. In addition, the government will raise the corporate tax rate of the innovation box from 5% to 7%.
VAT rates will increase as well. In 2018 tax authorities will demand 9% instead of 6% VAT.
Dividend tax, on the other hand, will be abolished altogether by January 2018. To prevent tax abuse, however, companies will still be subjected to withholding tax on outgoing interest and royalty flows to low tax jurisdictions.
Finally, the Dutch government officially pronounced to reduce the 30% ruling term to five years. This decree will be in effect starting January 1, 2018. It is one of the measures to restrict expats’ tax benefits. If you have more questions regarding these and other fiscal adjustments, please feel free to contact us. We are happy to assist you.
Find out how we can seamlessly help you set up your own Dutch company
Why don't you let us run you through the necessary steps, pitfalls and do’s and don’ts?