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In a business world that is increasingly global, it’s vital to understand the legal and tax requirements of each country your company operates in. For businesses in The Netherlands, submitting a corporate tax return is a key part of these obligations. This guide provides a step-by-step process to help you navigate this complex task.
Understanding the Dutch Corporate Tax System
The first step in submitting your corporate tax return in The Netherlands is to understand the local tax system. The Dutch corporate tax system is known as “vennootschapsbelasting” or “vpb” in Dutch, which applies to both private and public limited companies (known as bv or nv, respectively). Foundations and some associations are also obligated to file corporate tax returns.
Dutch law requires businesses with legal personality to file a corporate tax return. This includes:
- Besloten vennootschap or bv (private limited company)
- Naamloze vennootschap or nv (public limited company)
- Stichting (foundation)
- Vereniging (association)
Submitting Corporate Tax Returns for Foreign Companies
If your company is based outside The Netherlands but has a branch or subsidiary within the country, you will be liable for corporate income tax on the income received by the Dutch subsidiary. However, parent-daughter companies can establish a so-called fiscal unity, allowing them to balance negative results from one party of the fiscal unity with the positive results from another (or others).
Assessing Your Provisional Tax Liability
At the start of the fiscal year, the Netherlands Tax Administration will provide you with a provisional assessment. This amount is calculated based on data provided in previous years. If you expect a rise or fall in taxable profit different from what is stated in the assessment, you can request an adaptation of your provisional assessment. This can help prevent you from having to pay extra money later.
Filing Your Corporate Tax Return
If your fiscal year aligns with the calendar year, you must file your return before June 1st of each year.
There are multiple ways to file your tax return:
- Online through the Tax Administration website
- Using software applications from commercial companies
- By outsourcing your corporate income tax return work to a tax service provider, such as an intermediary, an accountant, or a tax consultant.
It’s also worth noting that you must file your return even if you have not received a provisional assessment. If you fail to file your return in time, the Tax Administration may impose an administrative fine.
For foreign taxpayers for corporation tax with no access to the Tax Administration website, a paper declaration for foreign taxpayers for corporate income tax will be sent by the Tax Administration.
Requesting an Extension
If you need more time to file your return, you can apply for an extension at the belastingdienst.nl website. The standard extension is five months, but if you need a longer extension, you must state your reasons for the delay on the form. A response from the Tax Administration will be received within three weeks.
Disputing the Final Assessment
If you disagree with a final assessment or an additional assessment, you can file an objection.
The Role of a Dutch Consultant
Working with a consultant who is proficient in Dutch can be a significant help when dealing with your corporation tax return. A consultant can assist you in preparing and filing your return.
Understanding Corporate Tax Rates in The Netherlands
It’s important to understand the rates for corporate tax in The Netherlands.
Taking Advantage of Tax Benefits
Making use of tax deductions and investment credits can allow you to deduct a sum from your taxable profit, thereby lowering your tax liability. Examples of investment credit schemes include the KIA, EIA, and MIA.
Submitting Your Corporate Return with House of Companies
For an easier and more streamlined process, you can use the services of House of Companies. With a fixed yearly fee, House of Companies provides a self-governance portal that allows you to submit your Corporate Tax return in The Netherlands. Start your Branch in The Netherlands now!
Founded by Dennis Vermeulen in Cyprus in 2007, the company has expanded to multiple European countries and Dubai, setting up over 10,000 entities. The company’s vision of ‘Globalisation as a Service’ involves making legal processes more understandable and actionable, disrupting traditional consultancy practices. House of Companies caters to global entrepreneurs, positioning itself as reliable, diplomatic, and empowering.
Summary
Submitting a corporate tax return in The Netherlands can be a complex process, but with the right understanding and assistance, it can be managed effectively. By following the steps outlined above, you can ensure your business remains compliant with Dutch tax law.
Remember, when in doubt, seek the help of a professional or use the services of House of Companies to streamline your process.
With this comprehensive guide, you’re now equipped to submit your corporate tax return in The Netherlands. Happy filing!
