NETHERLANDS Law and Practice Contributed by: Friederike Henke, Ingrid Cools, Philip ter Burg, IJsbrand Uljée, Suzan van de Kam and Epke Spijkerman, BUREN
5% in the relevant distributing company if, in short, the corporate shareholder is a tax resident of the EU or a Dutch tax treaty jurisdiction, and is the benefi - cial owner of the dividend, provided it is not a hybrid transaction and certain other anti-abuse tests are met. Application of the extensive Dutch tax treaty network may result in a reduction or refund of Dutch dividend withholding tax. Conditional Withholding Tax The Netherlands does not currently levy withholding tax on interest and royalty payments, with the excep - tion of a specific levy in intragroup abusive situations. In 2026, a conditional withholding tax at a rate of 25.8% is due on intra-group dividend, interest and royalty payments by Dutch resident companies to related entities residing in jurisdictions that are either on the blacklist issued by the Dutch Ministry of Finance (including low tax jurisdictions (less than 9%) and jurisdictions that are on the EU blacklist of non- co-operative jurisdictions) or in abusive situations. VAT The Netherlands levies Value Added Tax (VAT) on the supply of goods and services as part of the domes - tic implementation of the EU VAT Directive (Directive 2006/112/EC). The current Dutch VAT system, there - fore, is comparable to the VAT systems of other EU member states, although the Netherlands uses certain optional measures to facilitate trading. Under Dutch VAT law, in principle any person or entity can qualify as an “entrepreneur” (taxable person) if they act independently and perform (preparatory acts to) economic activities on a continuing basis, what - ever the purpose or result of those activities. Entrepre - neurs acting as such are, in principle, required to file VAT returns and are entitled to a refund of (input) VAT charged, provided they are engaged in VAT taxable transactions within the territory of a member state of the European Union. In the Netherlands, the following VAT rates apply to supplies of goods and services in 2026. • General rate: 21%.
• Reduced rate: 9%. • Zero rate (0%).
Furthermore, entrepreneurs must meet certain admin - istrative obligations when rendering VAT taxable or exempt transactions (eg, invoicing, keeping proper accounts, filing VAT returns, and EU Sales Listing reporting). 5.3 Available Tax Credits/Incentives Innovation Box Regime Dutch taxpayers can apply an “innovation box regime” to qualifying profits from certain self-developed intan - gible fixed assets. Under the innovation box regime, profits are includ - ed in the tax base of a taxpayer only for 9/25.8 part, resulting in an effective tax rate of 9%. Qualifying profits are benefits from qualifying self- developed intangible fixed assets multiplied by a nexus ratio. The nexus ratio consists of 130% of the taxpayers’ operating expenses and third-party out - sourcing expenses incurred in relation to the crea - tion of the relevant asset, divided by any expenses incurred in relation to the creation of the relevant assets, with a maximum of 100%. For small taxpayers, qualifying assets are intangible fixed assets developed by research and development (R&D) activities for which a so-called R&D certificate was issued. Taxpayers are considered small if their net group turnover is less than EUR250 million in the respective financial year and the four preceding years combined, and the benefits derived from the intangible assets are less than EUR37.5 million in the respective financial year and the four preceding financial years combined. For large taxpayers, qualifying assets are intangible fixed assets developed by R&D activities falling within the scope of certain specific categories. R&D Wage Tax Credit Regime The R&D wage tax credit regime enables companies that engage in R&D activities to pay less wage tax and social security contributions than they withhold
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