Health-Holland

Competitive fiscal climate International companies view the Netherlands as an attractive location, thanks in part to its investment-friendly corporate income tax system. It has a competitive corporate tax rate of 20-25% as well as excellent incentives for innovation and R&D, and a cooperative tax authority. Dutch tax practices have met OECD standards for the past 30 years. This, combined with its cooperative tax authority and stable government, means businesses can be confident that future changes will not pose significant obstacles or disadvantages to foreign investors. Investment-friendly corporate tax system The Dutch tax system offers several competitive features for companies looking to relocate or expand their operations in Europe: • A broad participation exemption of 100% from Dutch corporate income tax for all benefits related to qualifying shareholding. This measure is aimed at preventing double taxation. • Advance tax ruling from the tax authorities as well as the option for an Advance Pricing Agreement (APA). These give companies certainty concerning their tax position in the future. • Nearly 100 bilateral tax treaties to prevent double taxation and many companies enjoy lower withholding tax on dividends, interest and royalties (the latter often to 0%). • An efficient fiscal unity regime that provides tax consolidation for domestic activities within a corporate group. • A relatively low statutory corporate income tax rate of 25%. • There is no statutory withholding tax on outgoing interest and royalty payments. • A transfer pricing practice that is aligned with OECD Transfer Pricing Guidelines. • Pro-active and practical customs authorities. • No up-front payment of VAT upon importation: no actual payment of VAT. • Tax authorities allow access to the tax inspector. • A beneficial tax program with a 30% personal tax income advantage for qualified, skilled foreign workers. • An R&D tax credit for qualifying R&D wage costs and other related costs and investments (WBSO). • An ‘Innovation Box’ to stimulate technical innovation, which means an e ective corporate tax rate of 7% for qualifying profits. • A tax relief program for sustainable energy investments (EIA). • Tax relief for environmentally friendly investments (MIA/Vamil). The Netherlands: excellent incentives for innovation and R&D 63