Налоговая система Нидерландов

The taxable profits are the profits less tax-deductible donations. In principle the profits should be calculated in accordance with the provisions laid down in the Income Tax Act to determine the business profits of natural persons. In certain cases additional stipulations made in the Corporation Tax Act are also applicable. Under certain conditions it will be permitted to taxpayers to compute their taxable profit in currency other than the guilder (the functional currency) for a period of at least 10 years.

3.2.2. Tax rates Corporation tax is levied at a rate of 30% of taxable profits.

3.2.3. Determination of profits according to sound business practice The profits should be determined according to sound business practice and consistent accounting methods. The concept of sound business practice has mainly been developed in case law. For example unrealized losses may be taken into consideration, while unrealized profit may be ignored. The requirement of consistent accounting methods means that the method of determining profits may be changed only if this is compatible with sound business practice. Companies exploiting sea-going vessels may opt for a tonnage-based profit determination, providing that certain requirements are met. An important requirement is that the decision is binding for a period of ten years.

3.2.4. Depreciation of fixed assets The depreciation of fixed assets for tax purposes is a statutory requirement. In principle taxpayers are free to choose a depreciation method. The method chosen must be in accordance with sound business practice. The linear method of depreciation is generally used. A less common method of calculating depreciation is the declining balance method. In case law, the latter method is accepted only for fixed assets with a steadily declining use with age. A combination of both methods, i.e. depreciation according to a declining percentage, may also be used. Goodwill may only be depreciated if the goodwill has been purchased from a third party; goodwill generated by the company itself cannot be depreciated. An accelerated depreciation is permitted for certain fixed assets, of which the most important are: · energy-saving fixed assets and other environmentally-friendly fixed assets; · sea-going vessels; · intangible assets, providing these belong to a business that has been purchased which was not established in the Netherlands. This is subject to restrictions.

3.2.5. Stock valuation The following stock valuation methods are permitted: valuation based on cost, valuation based on cost or market value (whichever is lower), or the base stock method. Valuation at cost is in accordance with sound business practice, unless the market value is significantly lower than the cost. In this system unrealized profit is ignored, while unrealized losses can be taken into account directly. The value of the stock can be determined by either the FIFO or LIFO method. Subject to certain conditions, case law also permits the use of the base stock system.

3.2.6. Tax-deductible expenses; mixed expenses The basic principle of the determination of the profits is that all expenses associated with business operations are tax-deductible. If an expense can be regarded as commercially sound then its value is not of importance. However, the deductibility of certain business expenses is subject to restrictions. This concerns mixed expenses, which are business expenses with a private element. Non-deductible expenses include costs connected with pleasure craft used for entertainment purposes and fines. The limitations on deductibility of expenses are more strict for companies with one or more natural persons holding a substantial interest in the company, who also work(s) for the company. Basically, a natural person has a substantial interest if he holds 5% or more (direct or indirect) of the share-capital of the company. In that case 10% of the company's costs in connection with food, drinks, tobacco, representation including receptions and entertainment, seminars, excursions etc., are not deductible. The company can opt for a fixed amount of NLG 3,200 per substantial interest holder, who also works for the company, to be treated as non-deductible. The Corporation Tax Act gives an inexhaustive list of deductible and non-deductible expenses. The following expenses are always deductible: · profit shares paid to directors and other staff as remuneration for employment; · profit shares paid to creditors other than founders, shareholders or other persons entitled to shares in the corporation; · profit shares paid in connection with licences, patents, etc., to persons other than founders, shareholders or persons otherwise entitled to shares in the corporation; · profit shares paid by an insurance company to its policyholders; · the costs of incorporation and of alterations in the capital. In the Netherlands no thin capitalization rules exist. Since January 1997 limitations on the deductibility of intercompany interest expenses have been introduced in the Corporate Income Tax Act. The (interest) expenses on intercompany loans are not deductible in basically two types of situations: (interest) expenses arising from indebtness in the shareholder/susidiary relation, e.g. in connection with dividends, reduction of capital and capital contributions. However, (interest) expenses remain deductible, if the tax payer can demonstrate that both the transaction and the loan were entered into for sound business reasons; (interest) expenses related to artificial conversion of equity into debt within the group. However, expenses related to these schemes remain deductible, if the tax payer can demonstrate that either both the transaction and the loan were entered into for sound business reasons or that the interest paid is effectively subject to a reasonable level of profits tax in the hands of the recipient. The following expenses are never deductible: · profit distributions other than those specifically designated as deductible in the Corporation Tax Act (see above); · corporation tax, dividend tax and tax on games of chance.

3.2.7. Reserves Certain reserves may be formed by making a deduction from the profits. In order to qualify for this deduction the business must keep regular annual accounts. Three reserves are legally permitted, which are the cost equalisation reserve, the replacement reserve and since January 1997 the reserve for financial risks for multinational companies. The cost equalisation reserve enables recurrent costs to be spread uniformly over a period of time. A replacement reserve may be created if fixed assets are lost, damaged, or sold, when the payment received exceeds the book value. To be eligible for this reserve there must be plans to replace or repair the assets. The reserve should generally be terminated in the fourth year following the year in which it was formed.