Withholding Tax in the Netherlands?

The Netherlands has various forms of withholding tax.  Withholding tax means that tax is levied at the source.  The main types of Dutch withholding tax are dividend withholding tax and payroll tax.  The Netherlands does not tax interest or royalties.  Below we give a brief description of the different types of Dutch withholding tax.

  1. Withholding tax on Dividend / Dividend Withholding Tax;
  2. Withholding tax on Salary / Payroll Tax.

Withholding Tax on Dividend

The profits distributed (dividends) by a company based in the Netherlands are the source for the levying of dividend taxation.  Dutch dividend taxation amounts to 15% of the yield of shares.  The purchase of shares or the paying back of share capital is subject to dividend taxation, but the yield is, in some cases, limited, which effectively leads to less dividend taxation being paid.

The tax treaties that the Netherlands is party to often limit its own right to levy dividend tax.  If a company established in the Netherlands pays out a dividend to companies set up abroad, it is worth examining if a reduction of dividend tax is possible. Here you will find an overview of the taxation treaties (in English) that the Netherlands has signed and the accompanying withholding tax rates.

We would only be too glad to help you to reduce the dividend taxation bill that you pay.  We can also help with the preparation and submission of dividend tax declarations.

Withholding Tax on Salary

Payroll tax is levied from a withholding agent on salary payments to employees.  Salary is, therefore, the source of taxation.  Since payroll tax and the national insurance premium are paid together, they are known as payroll taxation.  Payroll tax is a withholding tax on income tax.

Please feel free to contact us for more information. We would also be more than willing to help you to get a reduction in payroll tax.  Similarly, we can help you to prepare and submit payroll tax declarations.