Doing business with the Dutch

Doing business with the Dutch

 If you are an investor or an entrepreneur wishing to do business in the Netherlands, you will have the pleasure of doing business with the Dutch. Due to the fact it is relative small country, not everyone is familiar with interacting with a person from the Netherlands. Dutch people however, have been used to foreign business contacts for ages. These experiences over the years have made the Dutch who they are today, and that is why doing business with the Dutch is so pleasant to many people around the world.

 Positive reputation

In general, the Dutch have a very positive business reputation. They are praised for their tolerance, their trustworthiness and their responsibility to take risks. Dutch people try to adjust to their environment and the people they interact with. Chances are you will enjoy your first time doing business in the Netherlands. As there is always room for improvement, here are some useful tips to make your Dutch experiences even better:

  1. Dutch directness

People in Holland are known for their directness in communication. Especially in the areas of Amsterdam and Rotterdam, the Dutch feel free to speak their minds. Body language and ‘hidden’ context are less important in the Netherlands, as almost everything is expressed verbally. Do not regard this as rude behavior, because the Dutch perceive their own directness as a sign of honesty. When doing business with the Dutch, always keep in mind that it is fine to be more open and direct yourself as well.

  1. The importance of agreements

In Holland, a spoken agreement is perceived almost just as important as an agreement on paper. The Dutch prefer a well-organized way of doing business, and may not appreciate when their business partner says one thing but in the meanwhile does something else. If you are unsure about making a promise, it can be better to wait.

  1. Social meetings

Doing business with the Dutch is often about meetings. Dutch people prefer to talk business over a cup of coffee or at lunch time. Some meetings are just informal chats, and are simply meant to get to know each other and to arrange a further meeting. Discussing non-work matters are perfectly accepted,so feel free to engage.

File an objection

To file an objection: tips & tricks

When you do not agree with the decision of a administrative body, in most cases it is possible to file an objection. In this way, many objections are being filed against the tax authorities every year. In this objection, you state why you do not agree with the decision. It is of importance that the objection is well supported by relevant arguments and that it meets the legal requirements. If not, the objection will miss its target. In this blog, you will get to know some useful tips to set up and file an objection.

  1. Be on time with filing an objection!
  2. The right authorities
  3. Legal requirements
  4. Support grounds
  5. Costs reimbursement and postponement of payment at objection

 

Be on time with filing an objection!

An objection always has to be filed within six weeks after the decision date. Write down this date in your agenda make sure it will be sent on time. An objection is usually not written in one night’s time. In other words, give yourself the time to think things through.

 

The right authorities

Make sure you send the objection to the right authorities. The body responsible for the decision is stated on the contested decision. The objection must be filed to that particular body. Fortunately, in the case your objection ends up at the wrong department, they are obliged to send forward your objection.

 

Legal requirements

Besides that your objection must be filed on time, there are several legal requirements. It is of importance that your objection meets these requirements, otherwise, the objection shall be denied. However the tax authorities are obliged to offer you the opportunity to recover your faults, it is advisable to meet the requirements at once. The objection must be signed and at least requires:

  1. The name and adress of the applicant
  2. The date of the objection
  3. A clear description of the decision to which the objection is aimed (pay attention that you display the right reference number and the content of the decision in a clear way). Even better is to add a copy of the decision as an attachment.
  4. The grounds of the objection

 

Support grounds

Firstly, it is of importance that you write in a clear and professional way. Be to the point and clearly describe what you desire. This means that simply taking position is not sufficient, you need to support this position by strong arguments. These arguments may vary, but generally, keep it short and powerful. Pay attention that if you support your arguments at the end of the procedure, these will not be taken into account in the reassessment of the decision.

 

Costs reimbursement and postponement of payment at objection

At the end of your objection, always ask for reimbursement of the costs you made in the process. Eventually ask for a postponement of payment. If you file an objection, it does not automatically mean your payment will be postponed.

In the case you find it difficult to set up an objection, you can always hire professional help. Often we see that people or companies start an objection procedure themselves and later on seek for legal support. In these cases, it often occurs that people have taken positions in early stages, which did not turn out to be wise in a later stage. It works the other way around to, important issues may be forgotten about. Do you want us to start an objection procedure for u? Contact us, we are at your service!

 

Dutch tax rate proposals for 2017

Dutch tax rate proposals for 2017

On 20 September, the annual Little’s Princes’s Day -traditionally known as the ‘tax rate proposal day’- took plage in The Hague. King Willem-Alexander from the Netherlands presented the Dutch proposals for law and tax regulations in 2017. The government strongly confirms its continued commitment to maintain the attractive features of the Dutch investment climate, for instance by reducing the corporate tax rate to a competitive level in the future, while proactively addressing tax avoidance. The Netherlands maintains innovation box while tightening specific interest deduction limitations and reconsidering dividend tax treatment of cooperatives.

dutch-tax-rate-2017

We want to keep our clients and partners updated by presenting you a summary of the most important proposals. Although not all of the proposals will make it into official laws and regulations, we believe this could be very useful information for investors and entrepreneurs.

Income tax rate 2017
Taxed income over (€) but no more than (€) Rate 2017 (%)
1st bracket 19.982   8,90
2nd bracket 19.982 33.791 13,15
3rd bracket 33.791 67.072 40,80
4th bracket 67.072 52,00
The proposals include the following key changes:

  • the Dutch ‘innovation box’ regime will be aligned, which grants a 5% effective corporate tax rate, with international standards while preserving benefits for the majority of taxpayers;
  • amending specific interest deduction limitations to address certain artificial structures;
  • suggesting broader dividend tax exemptions for all types of companies, but imposing a withholding liability on Dutch cooperatives.

Although the proposed changes concerning the innovation box and interest deduction limitations may be amended during the course of the legislative process, it is expected that they will take effect as of 1 January 2017. The dividend tax amendments have yet to be introduced and are expected to take effect as of 1 January 2018.

For more information, click:

Dutch tax rate proposals 2017