Tax advisers from the Netherlands Mr. R. Ooms FFP Mr. M. Blom LLM FFP NIJKERK www.blomadvies.nl

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Tax advisers from the NetherlandsMr. R. Ooms
FFPMr. M. Blom LLM FFPNIJKERKwww.blomadvies.nl
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Our services

• Income tax
• Wage income tax
• Corporate tax
• Purchase tax (value-added tax, VAT)
• Set-up, administration
• Prepare annual balance sheets
• Other legal forms
• Financial planning
• Heritage planning

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Doing business in the neighboring country What
about the tax authorities?
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Tax types an overview

• Income tax
• Corporate tax
• Capital tax (15)
• Purchase tax (MWSt, VAT, BTW)
• Wage income tax / social costs
• No business/industrial tax (!)
• No withholding tax for building works

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Income tax (1)

• Subject to taxation are
• Natural persons (one-man company)
• Private companies (e.g. OHG (general
  partnership), KG (limited partnership) the
  associates / natural persons

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Income tax (2)

• Subjective liability to pay taxes
• Domicile in the Netherlands (unlimited liability
  to pay taxes)
• Domicile outside of Netherlands,
• (limited liability) but income in the
  Netherlands

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Income tax (3)

• Limited liability to pay taxes, amongst others
• income from working in the Netherlands
• Gain from a Dutch company or company section,
  which is achieved with the help of a business
  premises (v.i.) or a representative business
  premises.

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Income tax system of boxes (4)
BOX III tax rate 1,2
BOX II tax rate 25
BOX I tax rate max. 52
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Income tax (5)

• Tax scale (2008) -Box I- natural person under
  65 years, incl. social security taxes
  (Volksversicherungen)
• tax
  social sec total
• Tranche 17.579 2,45 31,15 33,60
• Tranche 14.010 10,70 31,15 41,85
  
• Tranche 22.271 42,00
  42,00
• beyond 52,00

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Income tax (6)

• Tax scale (2008) -Box I- natural person under 65
• years, exemption form social security taxes
• (Volksversicherungen)
• tax
• Tranche 17.579 2,45
• Tranche 14.010 10,70
• Tranche 22.271 42,00
• beyond 52,00

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Corporate tax (1)

• Subject to taxation amongst others are
• Capital companies (N.V., B.V.)
• Cooperative society (Coöperaties)
• Opened private companies (open C.V.)
• Foreigen legal entities

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Corporate tax ( 2 )

• Unlimited liability to pay taxes
• Dutch companies (as a result of the legal form)
• Limited liability to pay taxes
• Foreign companies with income in the Netherlands
• Income from a Dutch company or company section,
• which is achieved with the help of a business
  premises
• (v.i.) or a representative business premises .
  

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Corporate tax (3)

• Tax scale (2008) lowering since 2006!
• tax
• Tranche 40.000 20,00
• Tranche 160.000 23,00
• beyond 25,50

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Purchase tax (1)

• Purchase tax (omzetbelasting)
• or also
• MWSt (BTW) / VAT
• Standard tax rate 19 (2009 20?)

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Purchase tax (2)

• Type of business volume delivery, other
  services.
• Location of business volume in wihch country is
  the volume achieved?
• Tax liability / tax examption of the volume.
• Tax rate 19 or 6?
• Type of taxation subject to taxation, obligor or
  beneficary?

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Purchase tax (3)

• Tax liability of the beneficary
• (verleggingsregeling) - copmare 13b UStG
• Obligor, not domiciled in the Netherlands (also
  no buniness premises) and beneficary is trader or
  legal person of public law domiciled or with a
  business premises in the Netherlands (Art.12
  Abs.3 NL- UStG)
• Construction works (special rules)

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Purchase tax (4)

• Application of refunding in the Netherlands
• Competent authority Belastingdienst (fiscal
  authorities)/ Limburg/Kantoor Heerlen
• Speciality
• 30. June, is no preclusion period.
• Application of statutory limitation rules (5
  Jahre).

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Purchase tax (5)

• Tax liability of the beneficary
  (Verleggingsregeling) includes all delivery and
  other services to domestic traders.

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Purchase tax (6)

• Refund cannot be achieved in the
• following cases
• Business volume in the netherlands, e.g.
• Warhouse in the Netherlands, delivery from stock
  into miscellaneous countries
• Defined delivery and other services to private
  customers.

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Belastingdienst (1)

• German companies with or without business
  premises
• (purchase tax)
• Belastingdienst (fiscal authorities)/ Limburg,
  kantoor
• buitenland
• Postbus 2865
• NL- 6401 DJ HEERLEN
• Business premises (provit tax)
• Local Belastingdienst
• Domestic companies
• Local competent Belastingdienst
• (for all tax types)

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Belastingdienst (2)

• Web page in Dutch
• www.belastingdienst.nl
• Telephone number for foreign companies
• 31 55 5 385 385

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Taxes a burden?

• Leuker kunnen we het niet maken, wel
  
• makkelijker
• (We cannot make it more
• pleasant, but easier)

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International tax law (1)

• Double tax agreement (Doppelbesteuerungsab-kommen
  , DBA) Germany- Netherlands
• Allocation of the right to raise taxes and
  avoidance of double taxation betwenn Germany and
  the Netherlands.
• Valid only for profit tax (income tax, wage
  income tax, corporate tax, industrial/business
  tax).

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International tax law (2)

• Business premises
• A) Fixed place of business, exercising the
  activities of the company.
• e.g. branch offise, workshop, construction
  works gt 12 months, catalog of exceptions.
• B) Representative business premises

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International tax law (3)

• Terms for miscellaneous typs of income, e.g.
  income from business
• Right of taxation for the country, the business
  premises is located in.
• Evaluation of the gain such as for a
  self-employed.
• - Exemption of the income in Germany.

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The EndThank you for your attention