Companies

Income tax

1. Income tax is levied on income from a particular tax year, from all sources of employment. The company’s profits are deducted taking into account business fees and general personal allowances after the end of the tax year.

Belastingdrempels in Nederland – Inkomstenbelasting:

Social tax (ZVW – Zorgverzekeringswet)

2.HV tax must be paid by the merchant even after deductions are taken into account. However, Zvw is charged directly on the profit of the company, excluding discounts after the end of the tax year (the sample rate for 2020 was 5.45%).

VAT tax

3. Sales tax (equivalent to VAT in Poland) – accounts for quarterly (or monthly) in mandatory returns filed with the tax authorities.

Applicable VAT rates in 2020:

• 21% – basic rate,
• 9% – the rate will reduce the woman,
• 0% – includes in intra-Community supply of goods and export of goods.

Operating charges:

Examples of types of business expenses are:

• administrative costs (including telephone, internet, office supplies),
• Advertisement
• fixed assets (investments of more than 450 Euro net – including company car, computer, laptop, camera, tools and machines),
• costs of renting business premises (office, garage, storage spaces),
• costs related to the employment of employees and subcontractors;
• transport costs (purchase or rental of a car for business use, transport of materials),
• materials and any other costs incurred in running the business.

Discounts for entrepreneurs

• STARTERS DEDUCTION: exemption for the starting entrepreneur is only granted in the first 3 years of running the business,
• INDEPENDENT – Relief for an independent entrepreneur. The entrepreneur must work a minimum of 1,225 hours for his own business during the year (these hours include time spent on work, as well as commuting, administration, advertising, meeting with a client, etc.)
• SMEs 14% – medium and small businesses (exemption for small and medium-sized enterprises), 14% on the company’s profit
• INVESTMENT DEDUCTION 28% – investment reduction 28% (min. € 2401 / year net fixed assets). Investment reduction can only be applied if the entrepreneur has invested in fixed assets in the company above € 2,401 net per year. This only applies to investments above € 450 net.