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Holland Company Formation Advantages

Updated:2018-4-4 14:36:24    Source:www.tannet-group.comViews:339

Holland company formation, also known as Holland company establishment, or Holland business setup, is a good choice for foreign investments looking at the tax advantages there. In this exposition, Tannet mention certain tax advantages when you want to set up a Dutch company. The Dutch tax authorities have an open attitude. In contrary to other countries, Holland offers the possibility to discuss tax positions in advance with the Dutch tax authorities.

Tax advantages in Holland
1. The 30% ruling
The 30% ruling is a tax advantage for highly skilled migrants in Netherlands. It means that the taxable amount of a gross Dutch salary is reduced to 70%, meaning 30% of the wage is tax free. This tax benefit, which is also known as the “30% reimbursement ruling” or “30% facility”, is applicable to expat employees working in the Netherlands who meet the requirements.

2. Dutch Bilateral Investment Treaty (BITs)
Holland also offers access to the Dutch Bilateral Investment Treaty (BITs) network, which includes a certain number of jurisdictions. BITs can be used to make sure that investors in certain jurisdictions receive the same treatment afforded to domestic investors or investors from third states. Next to that, BITs can provide protection from expropriation. Under most Dutch BITs, using a Dutch company in the corporate structure may shield against any foreign governmental interference, with dispute settlement clauses that mandate international arbitration, rather than having to go through the domestic court system.

3. Exemption from taxation
The Dutch participation exemption is a major attractor of companies. This facility allows the receipt of dividends and capital gains from subsidiaries. Free of tax. This has made Holland attractive for expansion into Europe and the rest of the globe.

4. Financing
Other tax advantages in Holland regarding companies, include financing (including hybrid debt) with no withholding tax on interest, services, and royalty payments. Holland also offers the innovation box regime under which profits from eligible intangible assets are taxed at an effective rate of 5%. Also, Dutch holding entities are generally subject to 25% corporate income taxation on their profits. Holland does not appear on most black lists issued by different jurisdictions for anti-abuse purposes.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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