The Netherlands


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The Netherlands

  1. 1. Setting up a business in The NetherlandsVATThe VAT in the Netherlands is 19% for a luxury product. A vacation is considered as a luxuryproduct. When you go by plane you have to pay another 2% on environmental tax. So foryour complete vacation by plane you have to pay 21% tax.Setting up a business in the NetherlandsWhen you would like to set up your own business in the Netherlands there are several thingsyou have to keep in mind.1) You must determine what the best legal form would be for your Dutch company.There are several different types of business, for example:One man business/one woman business (soletrader) or freelancerPartnership under common firm (VOF)Private limited liability company (BV)FoundationCheck out our brochure about working self employed in the Netherlands.Look here for more information about the legal forms.2) Then you can make a business plan.A good business plan may be essential for mapping out how your business will look. A goodbusiness plan provides answers to the following questions:What are you marketing and why?To whom?What is your plan of attack?What will it cost?What results will it have to deliver?The need for a business plan depends on the size of your company and the need for externalfinance.3) Register your business with the Chamber of Commerce and find out if there arediploma requirements.In some sectors you are required by law to obtain certain diplomas if you are self employed.The Chamber of Commerce implements these laws and issues the permits associated withthem.4) Contact the tax authorities.
  2. 2. If you are certain that you are ready for business, you should request the "Opgaaf gegevensstartende ondernemers" form (Statement of information by a new business) from the StartersDesk of the tax authorities.The tax authorities will make a provisional assessment of yourbusiness and decides which taxes you have to pay and will provide you with the necessaryregistration numbers (for example a VAT number).What kinds of taxes do you have to deal with?Businesses may have to deal with four kinds of taxes:1. Value added tax (VAT): it is almost always compulsory for businesses to chargeclients VAT (BTW).Businesses are nearly always liable to charge value added tax to their clients. Therate is 6% or 19% depending on the type of product or service. The VAT whichyou receive from your client must be paid to the tax office. The VAT which youhave paid out yourself to your suppliers can be offset against this. Value added taxis paid either monthly, quarterly or annually depending on the type of business youhave and the level of turnover2. Income tax: if the tax authorities considers you as an entrepreneur, you can benefitfrom a number of tax allowances. You will then pay less income tax.Entrepreneurs who pay turnover tax are not always liable to pay income tax. Whendeciding if an entrepreneur has to pay income tax, the tax office will look at thefollowing:the extent of the work performed;the level of turnover and profit;the time spent in the business;the presentation to the market;the number of clients (a minimum of three clients is often required);the presence of debtors risk.If the entrepreneur is liable to pay income tax, he can take advantage of a number oftax allowances. If you are an employer, you have to make wage deductions and paythese to the tax authorities. Declaration and payment is usually done on a quarterlybasis.3. Wages and salaries tax: if you employ staff, you will be liable to pay wage tax. Apayroll administration must be set up.4. Corporate income tax: if you have a private company with limited liability, you willbe liable to pay corporation tax.
  3. 3. If you have chosen a private limited company (BV) as the legal form for yourbusiness, you will have to pay corporate income tax and dividend tax.Which permits are necessary.In 2010 the General Provisions environmental law was introduced. This allows you to applyeasier for various permits. Do you want to expand or renovating your factory or officebuilding? In the past you needed permits for example for building, chop, environment,demolition and use. The environmental permit are 25 permits together in one permitMeasures contained in the environmental permit:Building permitenvironmentalPlanning permissiondemolitionmonumentUsagefelling permitEntrance or exit permitadvertising permitzoningproject Decisionbuilding codeFlora and Fauna and Nature Conservationsoil Protection Actenvironmental Reportsuse Reportsb: what kind of qualification is necessary to get the permit.You don’t need an education to start a company. If you know enough about your work, thepermits are okay and you have an appropriate location. Then you plan is feasible.
  4. 4. c: time for getting the permits.With a simple request you get your environmental permit within eight weeks. This period canbe extended with six weeks once.In a complex application you will receive up to 26 weeks after your environmental permit.Also this term can be extended with six weeks once.The treatment time can take longer. This depends on several things like:- the type of structure- the building location- the different procedures- the development and the time of submission- the handling of any objectionsd: costs for the permits.Fees are intended to cover the costs that the community makes to handle an environmentalpermit.The determination of the legal costs for an environmental permit is depending on the activitiesthat are requested.For some activities there are fixed amountsfor others, the amounts are related to the building costsExclusively for environmental activities are no legal costs payablebecause these costs from the municipality are funded by the stateFor an application that consists of multiple activities, the fee for each activity will firstdetermined, Then all amounts are addedThe total is the amount of fees due.E: is it necessary to have a business plan = what needs to be includedIn a business plan you will not only investigate the feasibility of your business,but it is also a good help when you have started your business.because you have formed ideas about the goals of your company, when they are not reachedyou can immediately react.Writing a business plan is not required, but writing a business plan is very advisable.Because then you can for yourself and sponsors makes everything easier
  5. 5. Finance and running costs,FinanceWhat is the interest for buisiness loans?Base rate for a business loan is 4.5%What are the subsidies from the gouverment?Maximum grants from the government, 50,000 euros and credit counseling for a new businessWhat are the rules to get an subsidie?Requirements for a grant to get a viable business have been. And on entrepreneurial qualitieslike perseverance and business acumen have.Witch capital is necessary for founding?Required an initial capital for starting businesses is 18,000 euros.Running costsThe average income is 34,600 euros per year in the Netherlands.What are the taxes for this wages?The taxes in Holland are in these boxes0 to 18.945 Euro 33.10% tax18.945 to 33.863 Euros 41.95% tax33.863 to 56.491 Euros 42.00% tax56.491 -... . .. Euros 52.00% TaxCost insurance / pension for a new employee is about 30% of gross wagesHow much do you have to pay for office room and advertising?Costs for renting business premises are 144-136 euro for a square meter.Cost to advertise in magazines ranging between 1,000 and 10,000 for a page in color. A radiospot of 25 seconds costs between 250 and 1,000 euros
  6. 6. TaxenThe present Dutch travel agents scheme will be brief, that VAT is levied only in so far as thetours take place in the Netherlands.The trips are regarded as the transport of persons. In some cases it may be claimed on theapplication of reduced rate or zero rate.-Under the current regime, under conditions of travel agents claim the right to deduct inputtax for the Dutch parts of the journey in the Netherlandsas well as place pressure on the unit cost of the tour operator. This is done by some foreigntravel agencies.-Even travel agents who act as intermediaries, taking on behalf of a travel agency sellingtravel, tour of the Dutch system can use.Approved 6% sales tax is that they fulfill their brokerage commission.As entrepreneur with a sole proprietor, you pay two types of taxes, income taxes and sales tax.Income tax is similar to the "normal load"employees who also pay, instead of wages, an owner of a sole proprietorship income tax onthe profits of the company. VAT is value added tax (VAT).The VAT is only for consumers, companies can therefore VAT they have paid aboutproducts recover. Btw they have received should they instead give up. you do this in principleonce a quarter through sales tax. Pay less than 1883 Euros VAT per year (2011) then you areeligible for the small business scheme (KOR) and you do less or no VAT to pay.Income tax isnot calculated on the total profits, there are some special deductions for entrepreneurs. Toreceive it you have to meet certain. requirements set by the tax authorities, the main criterionfor this is the hour: at least 1225 hours working in the business (a good time registration isrequired for this).The main deduction is the self-employed, this can amount to more than 9000 euros. Forstarters, this is even much higher due to start deductions.Rights for employeesWhat are the rights of employees?1. Right on holidays2. Sick pay rights3.Adjustment of working duration
  7. 7. 4.Right for permission1. Every employee has the right to get a number of vacation days. You can count yourvacation days with this form: 4 times the workdays in one week. Normally it is between the23 and 25 days(5 workdays times 4 + holidays like Christmas, New Year and Easter).2. Every employee has the right of wage payment by illness. In the Netherlands you call this:Wet werk en Inkomen naar Arbeidsvermogen(WIA). Translated: Law work and gainings afterworking capital. This right contents that people get 70% of their last gained salary until twoyears after their sickness. After two years they only get 35%.3. The adjustment of working hours is set in the law: Wet Aanpassing Arbeidsduur(WAA).Translated: Law Adjustment Working time. Employees can ask by this law to work less ormore hours. Employers can only refuse this when there is not enough or too much staff.But there are also three conditions to ask for it:1. People have to be at least 1 year in service with the same employer.2. It can only be a change in your own function.3. When people are sick and ask it, it only starts when they are not sick anymore and startworking.4. Every employee has the right of permissions: there are two sorts of permissions.Paid and unpaid.With paid permission people get, like the name says, paid when they are not at work. You canget this permission when you are pregnant or when there are important thinks like taking yourchild from childcare.People can get unpaid permission, for instance:You have to take care of your child or parents, or you start a new study.