Table of Contents
Corporate Tax Rates
Companies, partners, and corporations can choose from a variety of configurations in the Netherlands, each with its own set of tax obligations. The Belastingdienst, which is part of the Department of Budget, is in charge of the Dutch taxation system.
For the year 2019:
| Income | Tax Rate |
|---|---|
| Earnings up to €245,000 | 19% |
| Earnings above €245,000 | 25% |
For the year 2020:
| Income | Tax Rate |
|---|---|
| Earnings up to €245,000 | 16.5% |
| Earnings above €245,000 | 25% |
For the year 2021:
| Income | Tax Rate |
|---|---|
| Earnings up to €245,000 | 15% |
| Earnings above €245,000 | 21.7% |
For the year 2022:
| Income | Tax Rate |
|---|---|
| Earnings up to €245,000 | 15% |
| Earnings above €245,000 | 25.5% |
Income made by both formal and informal firms in the Netherlands must be taxed. The form of company you operate will determine whether you must pay federal income tax or corporate income tax. Once you’ve incorporated your business, the tax agency will tell you the taxes you’ll have to pay.
How The Netherlands Corporate Income Tax Calculator Work?
- Going to the page you will find the Income Tax Calculator of the Netherlands
- Select the assessment year you wish to (years as mentioned above)
- In the next step insert the annual taxable income of yours
- Lastly, you will find your net income tax that is needed to be paid
Note: The tax rate of different assessment years varies depending upon the income earned.
VAT Rates
| Rate | Type | Categories of Goods or Services |
|---|---|---|
| 0% | Zero | Intra-Community (By Sea & Air)Gold CoinsInternational Passenger Transport (By Sea & Air) |
| 9% | Reduced | Flowers and Plants for Decorative Use (some exclusions)ART, Collectors’ Items and AntiquesHairdressingFood ProductionShoes and Leather GoodsClothing and Household LinenRestaurants (excluding alcoholic beverages)Use of Sports FacilitiesAdmission to Sports EventsCertain Cleaning of Private HouseholdsTake Away Food, Bars, Cafes and Night ClubsHotel AccommodationWriters and ComposersCertain Cleaning of Private HouseholdsAdmission to Cultural Events and Amusement ParksCertain Renovation and Repair of Private DwellingsIntra-Community And International Road, Rail and Inland Waterway Passenger TransportNewspapers and PeriodicalsBooks (including e-books)Medical Equipment for Disabled PersonsDomestic Passenger Transport (excluding air travel)Soft DrinksPharmaceutical ProductsHuman Food ConsumablesSoft Drinks |
| 21% | Standard | Other Products and Services |
How The Netherlands VAT Calculator Works?
- Going to the page you will find the VAT Calculator of the Netherlands.
- Select the goods and services category (you can check the table above to see the several goods and services categories)
- In the next step insert the ‘Net Taxable Amount’
- This will lead you to get the VAT amount that is needed to be paid.
Example
A cycle maker pays €5.10 for natural resources, which contains a 10% VAT. Just after pieces are finished being manufactured, the manufacturer purchases them for €10.20, which incorporates a €0.93 VAT. The maker is paid €10.20, with €0.56 going to the government.
The maker will preserve the amount of VAT that he had spent on the supplier of the building ingredients, therefore the whole €0.93 VAT will not be given to the government. Because the maker spent €0.46 in VAT to the supplier of the building ingredients, he or she will only agree to pay €0.46 in VAT (€0.93 – €0.46).
| VAT Calculation | |||
|---|---|---|---|
| Purchase type | Cost | VAT Charged | VAT Paid |
| Raw Materials | 4.64 | 0.46 | 0.46 |
| After Manufacturing | 9.27 | 0.93 | 0.46 |
| After Assembling | 13.91 | 1.39 | 0.46 |
| Wholesale | 18.55 | 1.85 | 0.46 |
| Retail | 27.82 | 2.78 | 0.93 |
| VAT charged to consumer | 2.77 | ||
By deducting the VAT which has already been imposed from the VAT at the most recent phase of buying, the VAT spent at each phase may be computed. The VAT charged by one of the other purchasers at previous phases is fully paid by the ultimate retail customer.