Holland source netwerkbelastingsopslagintegratie

Are limited partnerships taxed in the Netherlands?

Income from partnership interests are subject to personal income tax at the level of the individual (see Taxation of individuals). Closed limited partnerships are not subject to Dutch dividend withholding tax. They are also not considered residents of the Netherlands and as such are not entitled to Dutch bilateral tax treaty benefits.

Who is subject to income tax in the Netherlands?

This tax regime only applies to non-residents who live in an EU or EEA Member State, Switzerland or the BES Islands. At least 90% of the income of the non-resident individual should be subject to income or wage tax in the Netherlands (in line with EU case law, i.e. 10 May 2012, Commission vs. Estonia, C-39/10, exceptions may apply).

Are FIFS subject to Dutch corporate income tax?

FIF’s are subject to Dutch corporate income tax, however a zero percent rate applies. As a result of it being subject to Dutch corporate income tax, a FIF is entitled to Dutch bilateral tax treaty benefits.

Are closed limited partnerships subject to Dutch dividend withholding tax?

Closed limited partnerships are not subject to Dutch dividend withholding tax. They are also not considered residents of the Netherlands and as such are not entitled to Dutch bilateral tax treaty benefits. FIF’s are subject to Dutch corporate income tax, however a zero percent rate applies.

What is the burden of personal income tax in the Netherlands?

At first sight, the burden of personal income tax in the Netherlands appears to be a high one, taking into consideration the maximum personal income tax rate of 49.50%.

How does taxation work in the Netherlands?

The regulations apply to taxpayers (individuals and companies) resident in the Netherlands. For profits and other income, the general method for elimination of double taxation is the so-called exemption method; Netherlands tax on the world-wide income is reduced by a percentage that corresponds with foreign income divided by world-wide income.