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LOWTAX ONSHORE

NETHERLANDS: TAXATION OF FOREIGN BRANCHES


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BACK TO NETHERLANDS INFORMATION: LOW-TAX AND INCENTIVE REGIMES

Dutch laws regarding the taxation of branches are extremely attractive:

  • Profits of a Foreign Branch: All profits, capital gains and income of the foreign branch of a Dutch registered parent company (whether those profits are repatriated or not) are exempt from corporate income tax in Holland (unless those profits have not been taxed in the foreign jurisdiction in which the branch operates).
  • Losses of a Foreign Branch: The losses of the foreign branch of a Dutch registered company are tax deductible from the taxable profits of the Dutch registered company. Thus where a project is likely to initially run at a loss it may be advisable for the Dutch company to set up a foreign branch since the tax losses of the foreign branch are tax deductible in Holland (whereas the tax losses of the foreign subsidiary of a Dutch parent company are not).
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BACK TO NETHERLANDS INFORMATION: LOW-TAX AND INCENTIVE REGIMES

   

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