Tax rates in the Netherlands in 2022
Corporate income tax in the Netherlands
This is the tax that a company (a BV or NV) pays over its profits. The profit consists of the revenues minus the costs. A company that does not make a profit normally does not pay any corporate income tax.
|SME tariff||15% (up to €395.000)|
|Standard tariff||25,8% (profits exceeding €395.000)|
|Innovation Box||9% on profits derived from qualifying innovative activities|
Personal income tax in the Netherlands
This is the personal income tax a natural persons pays on their income in the Netherlands. A tax resident in the Netherlands will pay personal income tax on his or her worldwide income.
|Personal Income Tax (IB)||Taxable income||Tax percentage|
|Bracket 1||Up to €68.508||37,03%|
|Bracket 2||From €68.508||49,50%|
VAT is called ‘BTW’ in Dutch. The standard VAT rate for most goods and services is 21%. This is a below-average rate within Europe. Many goods have a lower VAT of 6% or even 0%. For example: books and shoe repair have a 6% VAT. Most businesses pay a quarterly VAT return. You usually submit and pay the VAT tax one month after the end of every quarter. We offer bookkeeping and tax services so you can use your time on building your business instead of spending hours on administration and tax filings.
Tax on income from substantial interest
If you own 5 percent or more in a BV, you have a substantial interest. From any potential income from that substantial interest you will pay the rate below. This means in effect that if you pay out a dividend to yourself personally or sell your shares and receive the profits from this sale of shares to yourself, you will have to pay these taxes. Compared to other western countries, this is very attractive. Paying out a dividend instead of a salary is therefore very beneficial. Note: when paying out a dividend or the profits of a share sale to another company (most likely a personal holding), you do not owe these taxes. Taxes on income from substantial interest becomes relevant once you start paying out to a natural person.
|Box 2: Substantial Interest||2021||2022|
|Percentage||26,90 %||26,90 %|