[3] Certain expenditures, referred to as personal allowances, can be deducted from income prior to tax calculation.
Examples of personal allowances are donations to eligible charities, maintenance costs, medical or study expenses.
A substantial interest in a company is defined as owning at least 5% of its shares, options or profit-sharing certificates; either by the taxpayer themselves or together with their tax partner.
Presumed gains are calculated each year based on market returns realized in the past.
Married couples submit a joint assessment, except in the case when a divorce petition has been filed.
For value added tax there are three categories: foods and essentials, non-foods and luxuries, and special goods.
The special goods cover: Unlike some states in member countries that make up the EU, the Dutch tax regime allows the deferral of import VAT payment.
[11] Profits derived from self-developed intellectual property (including royalties) that qualify for the innovation box are subject to a reduced tax rate.
Since January 1, 2018, the effective tax rate applicable to corporate income in the innovation box is 7%.
[11] This feature of the tax regime makes the Netherlands an attractive location for European headquarters.
To qualify for substantial holding exemption, at least one of three conditions (tests) must be met: In the Netherlands, a parent company and one or more of its subsidiaries may form a tax group if certain conditions are met: Primarily, the parent company shall hold at least 95% of shares in the subsidiary.
Moreover, the parent company and the subsidiary need to be established in the Netherlands, follow the same financial year and apply the same accounting policies.
The money collected from the real-estate owners in its area can be used by the municipality to maintain the infrastructure (roads etc.).