The Netherlands has various forms of withholding tax, where taxation is levied at the source. The primary types include dividend and payroll tax, while interest or royalties are not subject to taxation. Here, we provide a concise overview of the different types of Dutch withholding 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.
Need information on withholding tax Netherlands? Turn to Duijn’s Tax Solutions
Are you seeking help with withholding tax Netherlands? The matter of withholding tax Netherlands can be complicated, but not for the experienced team of Duijn’s Tax Solutions! As our CEO Hendrik-Jan van Duijn says: “Our tax advisors will be more than happy to help you or your accountant with withholding tax Netherlands, whether your company is established in the Netherlands or abroad.”
Withholding tax Netherlands in good hands
Withholding tax Netherlands is common in the Netherlands. We have various forms of withholding tax Netherlands, where tax is deducted at the source of income, before the recipient receives it. The Withholding Tax Act 2021 regulates a withholding tax Netherlands on certain interest, royalty, and dividend payments. This involves payments made by a body established in the Netherlands to an affiliated body in a low-tax jurisdiction. We understand if you do not know too much about withholding tax Netherlands. Duijn’s Tax Solutions has a dynamic team of highly-educated specialized tax advisors who are up-to-date with the latest developments in their field. We have specialists ready for you to look into the matter of withholding tax Netherlands for you. As a unit, we are ready to answer the queries of our national and international clients; from Amsterdam to New York and Singapore.
Withholding tax Netherlands and much more
As you would expect from a professional company, at Duijn’s Tax Solutions we offer many more services which will be beneficial to your company, and to you. Get expert advice anywhere in the world on national and international taxation, especially corporate tax and dividend tax. We are right at home in the national and international business climate. We also have in-depth knowledge of VAT, customs’ levies, payroll taxation, income tax, transfer taxation, hybrid financing, hybrid entities, and other financial and fiscal matters. We are a committed partner and always seek the best solution for you. This means that we do not go for the obvious stop-gap option, but that we think in long-term solutions. At Duijn’s Tax Solutions we work conform to your needs and budget.
At Duijn’s Tax Solutions we work in a practical way: we communicated clearly with our clients and always offer applicable advice. We stay fully informed about developments and changes by being an active member in several professional networks. We are used to working fast. When you ask us a question or require information, we respond within 24 hours but usually on the same day.