NETHERLANDS LAW AND PRACTICE Contributed by: Friederike Henke, Ingrid Cools, Philip ter Burg, IJsbrand Uljée, Suzan van de Kam and Epke Spijkerman, BUREN
applied up to the maximum amount under the Standards for Remuneration Act (EUR246,000 in 2025). Furthermore, the 30% facility will be scaled back to 27% from 1 January 2027 onwards. The limi - tations will not apply to applicants who already applied the 30% ruling before 1 January 2024. Employee social security contributions Individuals are subject to social security contri - butions levied on income up to and including EUR38,441. The applicable rate is 27.65%. Taxes Paid by Employers Wage tax Employers qualifying as “withholding agents” must withhold wage tax and social security con - tributions (levied at the level of employees) in respect of wages paid to employees for Dutch wage tax purposes Employer social security contributions In summary, the rates of employer social security contributions in 2025 are as follows: • general unemployment insurance ( Algemeen werkloosheidsfonds – AWF) – 2.74% for contracted workers with an indefinite term and 7.74% for flex workers and temporary workers; • occupational disability insurance ( Wet op de arbeidsongeschiktheidsverzekering – WAO or Wet werk en inkomen naar arbeidsvermogen – WIA) – 7.64% for large employers and 6.28% for small employers; • Health Insurance Act contribution ( Zorgverze- keringswet – ZVW) – 6.51%; • childcare allowance contribution ( Werkgevers- bijdrage Kinderopvang ): 0.5%;
• government unemployment insurance ( Uit- voeringsfonds voor de overheid – UFO) – 0.68%; and • the Return to Work Fund ( Werkhervattingskas – Whk) – 1.33% (approximate amount). Only income up to and including EUR71,628 is subject to the above contributions. 5.2 Taxes Applicable to Businesses Corporate Income Tax Dutch tax-resident companies (or companies deemed to be tax residents) are subject to Dutch corporate income tax based on their worldwide income. Non-Dutch tax-resident companies are sub - ject to corporate income tax from certain Dutch sources, including: • Dutch permanent establishments or perma - nent representatives; • shareholdings of at least 5% in Dutch com - panies that cannot pass certain anti-abuse tests; and • other specific sources, including Dutch real estate, directorship services and the explora - tion of natural resources. The Dutch corporate income tax rate in 2025 is 19% for taxable profits up to and including EUR200,000, and 25.8% for taxable profits exceeding this amount. Under the Dutch participation exemption, income (eg, dividends and capital gains) derived by Dutch resident corporate taxpayers from qualifying subsidiaries is exempt from Dutch corporate income tax. In 2025, the term of the loss carry forward facil - ity is an unlimited period. The carry back period
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