Netherlands

Netherlands's Rankings
CategoryRankScore
Overall Rank1269.18
Corporate Taxes2453.24
Individual Taxes2257.08
Consumption Taxes1473.44
Property Taxes2160.08
Crossborder Taxes398.57

The Netherlands ranks 12th overall on the 2021 International Tax Competitiveness Index, the same as in 2020.


Strengths

  • The Netherlands allows net operating losses to be carried back one year, and the Last-In-First-Out treatment of the cost of inventory is allowed.
  • The Netherlands has a territorial tax system exempting both foreign dividends and capital gains and a broad tax treaty network, with 96 countries.
  • Corporations can deduct property taxes when calculating taxable income.

Weaknesses

  • The Netherlands has a progressive tax system with a combined top rate on personal income of 49.5 percent.
  • The VAT of 21 percent applies to approximately half of the potential tax base.
  • Companies are severely limited in the time period in which they can use net operating losses to offset future profits.

Learn more about the tax system in Netherlands

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