Backing your business every step of the way

The Netherlands has one of the most politically stable governments and pro-business climates in the EU. The economy is internationally focused. The financial sector is sophisticated. And the regulatory climate is simple, straightforward and business friendly.

Business Climate

Put simply, the corporate climate in the Netherlands is geared towards business growth. In addition to a stable, pro-business government, companies will find business and tax laws supportive. The number of procedures required to establish and maintain a business in the Netherlands is small. Special governmental organizations exist to help foreign companies set up and familiarize themselves with the Netherlands.

Legal Framework and Fiscal Policy

A constructive, non-buareaucratic attitude towards foreign investors and a history of honoring its agreements make the Netherlands a solid business partner. Government policies are known to be uniform, laws fair. In general, the Netherlands' legal framework encourages healthy competition among companies.

The Dutch financial infrastructure is strong, its economy highly developed and open. It accommodates the

financial needs of companies irrespective of nationality. Historically, inflation is low, currency stable and interest rates are about the most reasonable in the EU. For these reasons, the Netherlands has been the home to some of the world's largest multinationals.

Tax Structure

The Dutch tax system has a number of features beneficial in international tax planning:

• A wide tax treaty network reducing withholding taxes on dividends, interests and royalties often to 0% - the Netherlands does not levy a withholding tax on interest or royalties.
• The absence of withholding tax on outgoing interest and royalty payments.
• The participation exemption, which makes all benefits related to a qualifying shareholding, including cash dividends, dividends-in-kind, bonus shares, hidden profit distributions and capital gains are exempt from Dutch corporate income tax.
• The Dutch Advance Tax ruling practice that allows companies to obtain a pre-determined tax rate and gain certainty about their future tax position for a number of years ahead.
• The 30% ruling allowing a tax-free reimbursement of 30% of the employee's salary, provided that the employee has been recruited or assigned from abroad and has specific expertise scarce in the Dutch labor market.
• Lowered corporate tax rate. In the case of a branch of a foreign entity, corporate income tax may be avoided if the activities in the Netherlands do not constitute a permanent establishment or permanent representative.
• Business losses that may be carried back three years and carried forward indefinitely to offset against profits of subsequent years.