Dutch tax rules not exceptional, but favourable for international enterprises

International payment flows through the Netherlands increasing in size

Dutch tax rules for multinational enterprises are comparable with those in countries such as the United Kingdom, Switzerland and Luxembourg. In so far as the Court of Audit can determine, the Tax and Customs Administration’s checks of compliance with the rules are adequate. The Netherlands is an attractive country for multinationals because profits earned abroad are not taxed here, withholding tax is not levied on interest and royalty payments and tax treaties with agreements on a reduced rate of withholding tax have been concluded with 94 countries, including 23 developing countries. Furthermore, advance tax rulings made with the Tax and Customs Administration give multinationals certainty regarding which of their activities will be taxed. It is not known what impact this tax policy has on the revenue raised by dividend tax (€2.2 billion in total in 2013).