Netherlands

Netherlands's Rankings
CategoryRankScore
Overall Rank972.53
Corporate Taxes1956.82
Individual Taxes2164.24
Consumption Taxes1275.82
Property Taxes1270.57
International Tax Rules396.35

The Netherlands ranks 9th overall on the 2019 International Tax Competitiveness Index, two places worse than in 2018.


Strengths

  • The Netherlands has above-average provisions for corporations to write off investments in machinery.
  • The Netherlands has a territorial tax system exempting both foreign dividends and capital gains and a broad tax treaty network, with 97 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 52.3 percent.
  • The VAT of 21 percent applies to approximately half of the potential tax base.
  • Companies are severely limited in the amount of net operating losses they can use to offset future profits or reduce past taxable income.

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