Is your company liable for corporate tax in the Netherlands? Would you like to ensure that your overall tax liability is as low as possible, and are you looking for a tax advisor who can help you achieve that goal?
The Netherlands offers foreign corporations ample opportunities to minimize their tax burdens. One of the most well-known mechanisms to avoid unnecessary taxation is the tax treaty. And because the Netherlands has more tax treaties than any other country on Earth, it is likely that your company’s native country already has a tax treaty that is perfect for the job.
Koppel Services can help you determine the extent of your tax liability and optimize your fiscal strategy. And in the unlikely event that your country does not yet have a tax treaty with the Netherlands, we can help you find practical alternatives to keep your tax burden as low as possible.
A tax treaty is essentially a pre-existing agreement between your country and the Dutch government that determines which party is entitled to levy specific taxes. Because of this, a tax treaty can have many advantages for your company, not the least of which is clarity. The Dutch tax system is notoriously complex. Being able to rely on a tax treaty can make your life as an entrepreneur considerably easier.
At the same time, operating a permanent establishment in a foreign country increases your risk of double taxation. Thanks to the tax treaty, this risk can effectively be eliminated. In the skilled hands of a tax advisor, the legal framework provided by a tax treaty can be used to achieve double tax relief and optimize your corporate tax strategy all at once.
In some cases, a tax treaty may not offer sufficient clarity to suit your wishes. The provisions of the tax treaty may be too limited or narrow to work with, or they may not cover your specific situation.
This, however, is certainly no cause for concern. The Dutch Tax and Customs Administration offers foreign corporations the opportunity to supplement the generic provisions provided by a tax treaty with specific, individual tax agreements. These so-called tax rulings can help your company secure favorable tax rates and exemptions – and Koppel Services can help you apply for one.
Would you like to know what we can do to optimize your fiscal position? Contact Koppel Services today and arrange a meeting with one of our tax advisors.