Netherlands Corporate Income Tax Calculator
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Corporate Tax Rates in the Netherlands
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.
The taxable profit is subject to the corporate income tax, sometimes known as the vpb (vennootschapsbelasting). In a single fiscal year, your corporation in the Netherlands must pay corporate income tax on the taxable profit. If your business has deductible losses, you can lower the taxable profit.
The fiscal year used to calculate the corporate income tax return must coincide with the fiscal year specified in the company’s articles of incorporation.
In this article, we will be discussing more in-depth the corporate tax rates in the Netherlands and how to calculate the tax imposed on profits.
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 | 25.8% |
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 Coins International Passenger Transport (By Sea & Air) |
| 9% | Reduced | Flowers and Plants for Decorative Use (some exclusions) ART, Collectors’ Items and Antiques Hairdressing Food Production Shoes and Leather Goods Clothing and Household Linen Restaurants (excluding alcoholic beverages) Use of Sports Facilities Admission to Sports Events Certain Cleaning of Private Households Take Away Food, Bars, Cafes and Night Clubs Hotel Accommodation Writers and Composers Certain Cleaning of Private Households Admission to Cultural Events and Amusement Parks Certain Renovation and Repair of Private Dwellings Intra-Community And International Road, Rail and Inland Waterway Passenger Transport Newspapers and Periodicals Books (including e-books) Medical Equipment for Disabled Persons Domestic Passenger Transport (excluding air travel) Soft Drinks Pharmaceutical Products Human Food Consumables Soft 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.
Conclusion
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.
If you plan to start a business in the Netherlands or have an existing business, you must be aware of the various corporate taxes imposed on the firm. However, it is advisable to get assistance from Odint Consultancy professional experts to help you get a detailed idea about it.
FAQ’s
A vast network of tax agreements, a low corporate income tax rate, and a full participation exemption for capital gains and earnings are all features of the Netherlands.
The tax rate on the income in box 2 below is 26.25% in 2020 and will increase to 26.9% in 2021. 30% of the income from box 3 below will be taxed.
Even though you might have to submit two tax returns, the same income won’t be taxed more than once. The Netherlands enters into agreements with other nations to specify which nations can tax particular types of income.
The 30% ruling is a tax break for foreigners in the Netherlands. Foreign workers who are qualified and awarded the 30% decision may receive a tax-free allowance equal to 30% of their gross employment income.
