Dutch |
Print| Registration with the tax authorities |
| Filing corporate tax return |
| Assessments |
| Adjustments |
| Penalties |
| Appeal |
| Collection of tax |
| Tax audits |
| What can we do for you ? |
Registration with the tax authorities
Starting up a business in The Netherlands, either using a legal entity (B.V.) or establishing a branch requires registration with the Dutch tax authorities. Registration is to be done by filing a standard form that includes information about the name and address of the Dutch business, legal form of the business, details of the incorporator, details about kind of activities that will be performed and whether these activities are subject to VAT.
Irrespective whether activities are performed through a legal entity or a branch, an annual corporate tax return must be filed. Normally, the return should be filed within five months after the preceding financial year is closed (i.e. for a financial year closed per 31 December, the return must be filed before the first of June in the following year).
Usually extension for filing the tax return can be obtained, with a maximum of nine months (again for a financial year closed per 31 December, the return must be filed before the first of March in the second year).
In order to obtain the second period of extension for filing the tax return it is required that a preliminary tax return is filed (estimation of the taxable income).
During a tax year in general two provisional assessments are raised. The first assessment can for a going concern business be expected during the first month of the tax year (for a financial year closed per 31 December, the first assessment can be expected in January). This provisional assessment is based on the information of the preceding two financial years. If not in line with the taxpayer’s expectations for that year, it is possible to file an appeal indicating the expected taxable result.
The second provisional assessment is based upon an estimate of the taxable income to be provided by the taxpayer by virtue of filing an preliminary tax return (required for obtaining extension for filing) and can be expected around the eight’s month after the beginning of the financial year (for a financial year closed per 31 December, this assessment can be expected in August).
The tax inspector issues a final assessment based on the tax return filed. Any provisional assessments issued before are to be set off against the final assessment. Interest will become due on the outstanding amount of tax due or is allowed on the amount of tax refundable. Interest (so-called ‘heffingsrente’) is calculated on the difference between the amount of the final assessment and the (total) amount paid on preliminary assessments. This interest is charged or will be allowed per the first day of the second half of the calendar year (if the book year coincides the calendar year), effective from that date (1st July) until the date of assessment. The interest rate currently amounts to (2nd quarter 2009: 3,5%) This rate is adjusted quarterly.
When a tax return is not filed timely, the tax inspector may issue an estimated assessment. The taxpayer should then prove that the taxable amount estimated by the tax inspector is not correct.
When the tax inspector is of the opinion that any adjustments should be made to the tax return, he will notify the company in writing. Corresponding assessments may then be issued.
When final assessments already have been raised but which afterwards appear to be incorrect because of fraud or other circumstances that became known afterwards, the tax inspector can issue a revised assessment. The right to issue revised assessments in normal circumstances expires five years after the end of the tax year concerned (extended by period that extension of filing is granted). Special rules can apply if foreign sources of income are involved.
Dutch corporate tax law provides for a variety of penalties, which can be imposed in case of amongst others late filing or filing incorrect tax returns. Although the tax authorities usually impose these penalties, they are considered to be part of the Dutch penal system to which special rules apply.
Any assessment issued gives the taxpayer the right to file an appeal within six weeks after date of issuance. The appeal can relate to the tax imposed or the penalties levied.
If the taxpayer does not agree with the decision of the tax inspector on his appeal, the taxpayer has the right to file an appeal at the lower Court (in Dutch: rechtbank), and subsequently, on a matter of law only, to the Supreme Court.
The appeal must be filed by the taxpayer (or his authorized representative) at the latest 6 weeks after the date of the decision of the tax inspector on the objection. An appeal is possible against all the decisions of the tax authorities to which it is open to file an objection.
Tax payers may choose to pay the tax due on provisional assessments of the current year at once or in monthly instalments if the assessment is levied before the end of the year to which it relates.
Payments on the final assessment are due within two months after date of issue, unless extension is granted by the collector for instance pending a decision on appeal. If not fully paid on due date, interest is charged on the remainder from that date till payment.
Tax audits on companies take place periodically. As a rule of thumb, each and every five year a tax audit can be expected. Tax audits are usually announced in advance.
| Dealing with tax registration formalities |
| Dealing with tax compliance |
| Monitoring and reviewing tax compliance performed by third parties |
| Tax advice |
| Representation in tax audits |
| Negotiating tax rulings |
| Issuance of legal opinions |
| Representation in appeal and court proceedings |