Netherlands's headline corporate income tax (CIT) rate is 25.8.
The headline personal income tax (PIT) rate is 49.50.
The standard VAT/GST (or equivalent consumption tax) rate is 21. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
The Netherlands determines individual tax residency under a facts-and-circumstances test rather than a fixed day count - the central question is where a person's life is genuinely centered (permanent home, family, work, and financial ties), assessed by the Belastingdienst case by case. Where an individual is claimed as resident by both the Netherlands and a treaty partner, Dutch treaties apply the standard OECD tie-breaker sequence: permanent home, then center of vital interests, then habitual abode, then nationality. Residents are taxed on worldwide income; non-residents only on Dutch-source income.
Effective since 2019 (implementing EU ATAD 1), the Dutch CFC regime applies where a Dutch corporate taxpayer holds, directly or with affiliated companies, more than 50% interest in a foreign subsidiary or permanent establishment that is tax resident in - or located in - a "low-taxed" jurisdiction: one with no corporate income tax, a statutory rate below 9%, or inclusion on the EU non-cooperative jurisdictions list or the Netherlands' own annually updated low-tax blacklist. Where more than 30% of the CFC's income is "tainted" passive income (dividends, interest, royalties, and similar), that undistributed passive income is included in the Dutch parent's taxable base. The regime does not apply where the CFC carries on genuine economic activity, demonstrated through minimum substance requirements (at least EUR 100,000 in labor costs, dedicated office space actively used for the business) or other organizational and strategic evidence of real activity.
The Netherlands has no formal debt-to-equity thin capitalization rule. Interest deductibility is instead governed by the ATAD-based earnings-stripping rule, which the Netherlands has implemented more strictly than the EU minimum: net interest expense is deductible only up to the higher of 24.5% of adjusted (tax) EBITDA (as of 2026) or a EUR 1 million threshold - considerably tighter than ATAD's baseline 30%/EUR 3 million. A separate anti-base-erosion rule denies interest deductions on related-party loans used to fund profit distributions, capital repayments, capital contributions, or acquisitions of interests in related entities.
The Netherlands maintains bilateral tax treaties with roughly 90-100 countries, one of the most extensive networks in the world, predominantly based on the OECD Model Convention (with a stated preference for the UN Model in treaties with developing countries). The Multilateral Instrument (MLI) entered into force for the Netherlands on July 1, 2019, first effective January 1, 2020. Russia terminated its tax treaty with the Netherlands effective 2022, though the older treaty remains applicable to Kyrgyzstan, Tajikistan, and Turkmenistan by succession.