Taxation

For centuries, the Netherlands has been a nation of traders. To ensure that this long-standing tradition endures, the Dutch government has created a competitive tax regime that stimulates entrepreneurship and foreign investment in the Netherlands. Not only are corporate tax rates lower, in comparison with most of its European neighbours, but there are also numerous other incentives that make it attractive for foreign companies to locate operations in the Netherlands. The competitive tax climate in the Netherlands is due to its far-reaching tax treaty network, its system of bonded warehouses, and the possibility to arrange advance tax rulings, whereby a company's future tax liability is determined in advance.

The principal taxes in the Netherlands are corporate and personal taxes on income (including wage withholding tax) and value-added tax (BTW). Private individuals are also liable for a number of other taxes, such as inheritance tax and gift tax.

Further information:

• Tax Authority: www.belastingdienst.nl