Taxation of Individuals
Individual income taxation in the Netherlands is based on residence.
Under Dutch tax law, a number of criteria are used to determine the place of residence. The most important criteria include the following:
Where a permanent home is maintained.
Where employment duties are performed.
Where the individual's family resides.
Where the individual is registered with the local authorities.
Where bank accounts and other assets are maintained.
The intended length of stay in the Netherlands.
If an individual is resident in the Netherlands, they will be taxed on their worldwide income.
If an individual is not Netherlands resident, they will usually only be taxed on their Dutch-source income.
Taxation of legal entities
There are two taxable income brackets for corporate income tax (“CIT”) in the Netherlands. A lower rate of 19% applies to the first income bracket, which consists of taxable income up to EUR 200,000. The standard rate of 25.8% applies to the excess of the taxable income.
Dutch resident companies are generally taxable in the Netherlands on their worldwide profits.
Non-resident companies are subject to Dutch corporation income tax on income from Dutch sources.
The Netherlands generally follows the Article 5 OECD Model Tax Convention definition of permanent establishment. This should generally mean that activities of a preparatory or auxiliary nature linked to the staging of an event such as UWCLF 2023 performed by a non-resident entity in the Netherlands for a period of less than 6 months should not lead to the creation of a Dutch PE (though careful analysis of expected activities in the Netherlands should be performed by each UEFA partner).