Dutch |
Print| Procedure |
| Branch or representative office |
| Registration requirements |
| Capital registration tax |
| Wage tax and VAT |
| Corporate tax |
| Taxable branch versus non-taxable branch |
| What can we do for you ? |
The establishment of a branch can be done through a less formal procedure compared to the establishment of a BV. In essence a branch is recognized as from the day its activities are started.
Branch or representative office
If we talk about a branch we mean a location or office from which business activities are conducted. A representative office may also be a location or office, but generally speaking no business activities are conducted there. A typical activity of a representative office is a location for doing market research, providing product information, etc.
The relevance of the distinction between a branch and a representative office is that the latter does generally not have to be registered with the Chamber of Commerce (in fact registration is not possible and will be denied) and furthermore a representative office does under certain conditions not constitute a taxable presence in the Netherlands. A representative office can have employees. If so, the foreign entity needs to register itself as a withholding agent with the Dutch tax authorities (has the obligation to withhold wage tax). The Dutch VAT incurred by a representative office is under certain conditions eligible for refund. In order to get a refund, the foreign company should file a periodical request with the Dutch tax authorities.
A branch should be registered with the Chamber of Commerce, the Dutch tax authorities and the social security office. The information to be provided upon registration mainly regards information about the foreign corporation (head office) and is very much the same as for a BV. The information to be provided includes a complete and concrete description of the actual business activities, services and/or products of the foreign corporation and the Dutch branch.
The establishment of a branch and in addition the contribution of capital to the branch does not attract Dutch capital registration tax (capital registration tax is abolished).
A branch is usually subject to the same wage tax and VAT regime as a BV. It will depend on the nature and volume of the activities of the branch whether or not the branch becomes subject to Dutch corporate income tax.
The Dutch criteria for a taxable presence are quite easy to comply to: usually if the branch is registered with the Chamber of Commerce it will according to the Dutch criteria be considered a taxable branch. However, under the tax treaties concluded with the country where the head office of the branch is located, special rules may apply which forbid the Netherlands to exercise their right on taxation.
We refer to the page Dutch tax treaties for an overview of the countries with which the Netherlands have concluded tax treaties. Every tax treaty contains its own special branch rules but most treaties are based on the same principles. For some general guidelines we refer to the page Investing the Netherlands - Taxable branch versus non-taxable branch. What can we do for you ?
We have broad experience with foreign companies, which have set up a branch in the Netherlands. We can advise you on an appropriate strategy and deal with the registration requirements. Please feel free to contact us, if you require more information. Our services include:
| Advice on tax implications of the Dutch activities (taxable or not) |
| Negotiate advance ruling on non-taxable status |
| Advice on employee tax implications |
| Advice on VAT implications |
| Deal with registration formalities |
| Deal with tax compliance matters |
| Deal with VAT refund requests for foreign entrepreneurs |
If you are interested in our services, please feel free to contact us via e-mail or to call us at our offices on the number +31 (10) 2010466.