Netherlands
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 12 | 69.18 |
| Corporate Taxes | 24 | 53.24 |
| Individual Taxes | 22 | 57.08 |
| Consumption Taxes | 14 | 73.44 |
| Property Taxes | 21 | 60.08 |
| Crossborder Taxes | 3 | 98.57 |
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