Netherlands Information: Low-Tax and Incentive Regimes

Netherlands Tax-News.com Coverage

- 22/05/2012 Dutch Report Substantiates Need For Austerity Budget
- 02/05/2012 Dutch PM Confirms Bank Tax Rise
- 02/05/2012 ECJ Rules Against Dutch Tax On Cross-Border Car Use
- 27/04/2012 Dutch Opposition Shuns Austerity Path
- 25/04/2012 Netherlands Intensifies Efforts To Combat VAT Fraud

More Netherlands Tax News »

Netherlands Tax Treaty Updates from TreatyPro

Treaty Update: Netherlands - India
16/5/2012
India and the Netherlands signed a Protocol on May 10, 2012, to add tax information exchange provisions to the two countries' existing DTA.

Treaty Update: Netherlands - Germany
17/4/2012
> According to the Dutch government, The Netherlands and Germany on April 12, 2012, signed a new DTA.

Treaty Update: Netherlands - Chile
5/4/2012
The Dutch Ministry of Finance announced on March 28 that negotiations are to resume between the Netherlands and Chile towards a DTA.

More Netherlands Tax Treaty Updates from TreatyPro »

Netherlands Knowledge Base

- NETHERLANDS INDIVIDUAL NON-RESIDENT TAXATION
- NETHERLANDS CORPORATE NON-RESIDENT TAXATION
- NETHERLANDS SPECIAL EXPATRIATE FISCAL REGIME
- NETHERLANDS DUTCH HOLDING COMPANIES
- NETHERLANDS INTEREST CONDUIT COMPANIES
- NETHERLANDS ROYALTY CONDUIT COMPANIES
- NETHERLANDS ANTILLES AND ARUBA
- NETHERLANDS THE FISCAL UNIT
- NETHERLANDS TAXATION OF FOREIGN BRANCHES

Although the Netherlands has a sophisticated tax system with high tax rates some aspects of its fiscal system are extremely attractive and make it the ideal location in which to base international trading operations. Attractive fiscal incentives are further enhanced by a complex network of double taxation treaties (few of which contain any anti avoidance provisions) and by the existence of a procedure of advance tax rulings whereby the tax authorities who are autonomous and approachable can at short notice specify the fiscal consequences of certain business structures provided that material financial interests are involved and the propositions are reasonable.

The Dutch government included a series of tax incentives in its 2010 Tax Plan, specifically designed to make enterprise simpler and therefore more attractive to entrepreneurs.

Key tax incentives contained in the government’s 2010 Tax Plan include the following measures:

• In the area of research and development (R&D) the "patents box" scheme will be replaced by an "innovation box" scheme for innovative entrepreneurs. As a result, income derived from R&D will only be taxed at a rate of 5%, and the ceiling for the scheme will be removed.
• In order to enable entrepreneurs to increase their cash flow, they will have the option of offsetting losses incurred in 2009 and 2010 against profits made in the three previous years. The system of accelerated depreciation will continue in 2010.
• The profit exemption for small and medium-size businesses is to be increased by 1.5% to 12%. In addition, entrepreneurs will no longer have to devote a minimum period of time to their business in order to qualify for the measure, enabling individuals to carry on a business alongside salaried employment.
• In a bid to foster business growth, the small-scale investment tax credit (KIA) is to increase by 29%.
• A number of tax incentives designed to benefit directors of a company in which they are also major shareholders (DGAs) are contained in the plan. These initiatives include extending the measure granting exemption from income tax to the transfer of a business by a DGA to a co-entrepreneur and relaxing customary pay arrangements.

The 2010 Tax Plan also includes a number of separate legislative proposals, designed to simplify certain tax rules and reduce the administrative and regulatory burden. The main simplifications are as follows:

• A new work-related costs scheme will be introduced. An exemption of 1.5% of the wage bill for tax purposes is to replace a cumbersome system of numerous tax-free allowances and benefits in kind from employers.
• From 2010, employers will no longer be required to deduct social insurance contributions and healthcare insurance contributions from pay to employees aged under 23 who earn less than the minimum salary. From 2011, this will also apply to the levying of wage withholding tax.
• A standard definition of wages for wage withholding tax, various social insurance contributions and income-related healthcare insurance contributions will be introduced, representing a saving for employers of around EUR380m.
  

Topic: Lowtax.net General
Indian Resident: Want to open a trading company in Hong Kong? or UAE?
Hi,
I am from India. I buy goods from China and sell them all over the world. I would like to open a trading company abroad in Hong Kong or UAE so I can directly export from China without bringing goods into India. Can someone advise me how can i go about it? What would the tax implications be for me india. We have very strict Foreign Exchange Management Act (FEMA) here in india. By no means am i trying to evade tax, just it would just be convenient to directly export from China.Jilu81
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Topic: Lowtax.net General
Future of offshore trust industry
How are offshore Trust Companies doing recently with recent development of Obama's track down and Canada Revenue Agency's increased scrutiny. Are they declining in their clients and revenues? Are they consolidating or closing down? Respectively, are they kicking out Canadian and American clients or are they squeezed out from providing anonymous trusts and merely holding onto a fraction service capability as an asset protection device?

Is there a still future for offshore trust companies? Do you see this industry is set to decline permanently?



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Topic: Lowtax.net General
World-Check and similar
Dear Experts,

I am an expatriate doing business within legal scope in different countries of the world utilizing different IBC vehicles for international trading and one European Ltd Company with VAT registration for trading with/within E.C.
Lately I am being confronted with strange situations like bank acc/s in different places of the world where I am BO and/or signatory being closed withing short notice time or banks and revenue departments asking much more questions about supporting documents or nature of business than I am used to. Is there a chance to see whether my name or name of one of my vehicles might have gotten into 'red flag' worldwide databases?
I once heard about databases like WORLD-CHECK or similar who keep records maybe e.g. even about your unpaid speeding fines in Singapore and the Canadian immigration or bank clerk would see that and might nag you for that.

Is there a chance to get a report from these databases?
Maybe I got into such a database by mistake or by false suggestion me to be a Bad Guy?

Thank you for any help.

B R
R.Mr R
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Topic: Lowtax.net General
3 months in 4 countries
Hello. I am currently a resident of Spain, but when I stop work, I plan to spend 3 months in 4 different places (a priori Thailand, Brazil, Morocco, Florida). 3 months because this normally means you do not need much of a visa, you normally do not get to be a tax resident, ...and you don't get bored.
I assume I will have to chose a place to be a tax resident in, but my idea is that it can be a place like Panama or similar where I do not need to reside.
I understand that the pension I would get from Spain might be taxed in origin, but my money which is offshore and which would be my main source of revenue would not be taxed.

Do you think this makes sense ?

Also if you have any view on how one can organise yourself in terms of splitting the year in 4 countries, I will gladly hear it.Madrid
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Topic: Lowtax.net General
Country with no personal income tax on foreign dividends
I have business income from Norway. I currently have a Belize company which owns a UK Holding company which in turn owns the Norwegian companies. I am happy paying the corporate tax of 28% in Norway. I want to move to a country that will not charge personal income tax on any dividends that I receive from the Belize offshore company. I hold a UK passport but have never lived in the UK. Any suggestions would be greatly appreciated. Thanks
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Topic: Lowtax.net General
Where to incorporate IP company
Hi there.

I have just started a web site and getting some traction. I am based in the UK, but I am a Pakistani citizen. The web site is a social commerce network and would like the protection offered by an IP holding company.

Been looking at Bermuda and Ireland as options - any other suggestions?

Thanks.
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Topic: Lowtax.net General
What is the best jurisdiction in Europe to established an online advertsiment ecommerce business?
Hi, I am about to start a new venture focused on the selling of online adverstisement and other mídia sevices to users worldwide. Payments will be made through credit & debit cards and PayPal, among other methods and are going to be collected by companies situated in the USA and Europe. Bank accounts are going to be maintained in the local jurisdiction of the company and in the USA and other countries in the EU.This company is going to be used mainly as a revenue collection entity, with no or very small expenses.
The main shareholders/beneficiary owners of the company are permanent residents in Latin America, USA and in the Bahamas.

Best,

CarEx

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Topic: Lowtax.net General
Contract Engineer
Hi
I am planning to work within Europe as a Contract Engineer. I want to set up
a corporation that has low or zero tax and overheads and take a small salary.
Also discretion is preferred. Whats the best option ? Jersey ? Guernsey ? Other ?
Thanks. Simon
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Topic: Lowtax.net General
Music & Recording Studio Thailand
Hello, still looking for investor for Music & Multimedia Studio in Thailand/Chonburri
We are a young multimedia studio for music & video production, scoring, film music and sound design, graphic & multimedia worx founded by a musician from Austria.
Info's & new Business plan
----------------------

Здравствуйте, еще инвестора для музыки и мультимедиа студии в Таиланде / Chonburri
Мы молодая студия мультимедиа для музыкальных и видео-продукции, скоринг, музыка кино и звукового дизайна, графические и мультимедийные Worx основана музыкант из Австрии.
patyrecords@gmail.com
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Topic: Lowtax.net General
Bank for Gaming Industry / Merchant Account
I am looking for Banks / Merchant Broker or Payment Gateways for processing funds resulting from Gambling Websites.

I have several Online Gambling Companies who are constantly looking for new partners who can process funds from their large turnovers in the Gaming Industry.

Since large banks, eg Barclays, Deutsche Bank, Santander or UBS step back from processing Gambling related funds because of several reasons ( bad reputation, fraud protection and money laundry ) the need for "open minded" banks or payment gateways is enormous.

The procedure is easy and difficult at the same time: gambling sites need processing of their client payments which are done by visa / mastercard or amex.

Anybody has an idea or can help me?

Thanks in advance,
Tom
ps: emails to businesscompany@mail.comTom
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