Netherlands

Advantages:

• The Netherlands is one of the most stable countries in Europe, which has diversified economic and constantly improve its legislation base.

• The Netherlands gives the plenty of attractive opportunities for tax optimization due to having a great number of Double Tax Treaties and favorable internal tax regime.
• There is special legislation concerning holding structures in the Netherlands that makes such jurisdiction attractive for those, who desire to protect their assets.

Taxation

Corporate tax is levied at 25,5% tax rate. The rate of 20% is applicable when company’s income is about 25 000 euro and the rate of 23,5 % - when company’s income varies from 25 000 euro to 60 000 euro. Capital gains tax and tax on other incomes are levied at the rate of Corporate tax.
Withholding tax on dividends is 15%. This tax can be reduced to 0% if the dividend recipient is an ultimate parent established in one of the members of the European Union or established in a country with which the Netherlands signed an agreement on avoidance of double taxation. Value added tax is 19%.

All incomes, capital gains and incomes of foreign companies that are subsidiaries of the Netherlands parent company are exempt from income tax in the Netherlands (only when such income is not subject to taxation in foreign jurisdictions, which subsidiaries are registered).

Share capital

In accordance with the Netherlands law paid-up share capital of private limited companies shall be 18,000 euro minimum. No less than 20% of the authorized capital must be issued and at least 25% of the nominal value of each share must be paid.
The minimum share capital for public limited companies is 45,000 euro.

Currency control.

No currency control.

Financial Statement

Companies in the Netherlands must be disclosed their incomes in the balance revenues and annual financial statements.

The following types of companies under law requests should prepare and file audited statement:
medium and large companies with limited liability, closed company with limited liability, cooperative companies, with mutual guarantees, banks and insurance companies.
Large companies must file the complete set of financial statements. Medium-sized companies also must file a complete set of financial statements, but unlike large companies, they are required to submit only limited additional information. Small companies should register only the summary balance sheets and accompanying notes.

Shares

The Netherlands has allowed only registered shares that can not be freely transferred to third parties without notarial certification. Share certificates are not written out, and the record of shareholders is in the form of the register of shareholders, that executes by Director. This register is kept at the company’s office.

Company formation

Before registration all the directors and shareholders of the company must obtain a certificate of approval from the Ministry of Justice of the Netherlands, after that the lawyer can make all the necessary formalities for company registration.

Confidential information

Information about beneficiary owners is confidential.

Double Tax Treaties

The Netherlands signed agreements of avoidance of double taxation with more than 100 countries.