How to choose a good tax adviser

Having a business will make you deal with a lot of financial arrangements through the course of the work days. All the cities are full of a large number of tax advisers or law firms willing to help you with your troubles. But how do you know how to pick the right one for you? Rule 1: he’s keeping it simple. First of all, before starting to get in the middle of business with your tax adviser it would be preferable if the person you are dealing with is using terms you can understand. It’s no problem to be knowledgeable, but if the tax regulations and terminology are too complex and your adviser makes it even harder for you to understand when he’s speaking then you are better off him. Pick someone who can explain to you the terms you don’t understand and in which you can place your trust. Rule 2: he’s objective. If you happen to be into an environment where both your personal and professional lives intertwine, then make sure that the adviser can keep a neutral overview of the situation and guides you properly. Rule 3: he’s qualified. This should be without a doubt, one of the most important characteristics which your prospective adviser should posses. He should inspire a good professional conduct, the ability of confidentiality and be a follower of ethics. Also, keeping up with the latest updates on taxation laws and advisory best practice is also a must. The three rules above refer to the professional competencies a Tax Advisor Netherlands should have. However, take into account the atmosphere created when you talk and that he’s a good communicator. When meeting your tax adviser you should feel comfortable talking to him. If you’re not feeling comfortable during your meetings then you will not feel inclined to ask too many questions when in doubt regarding certain issues. Hence you might not get the best results after concluding it.

The taxation law in the Netherlands

The tax system in Netherlands, especially for an emigrant, is quite a bit complicated. This is a country which is socially conscious which means that you should expect to pay a substantial proportion (up to 52 percent) of your salary to the taxman. The percentage paid is calculated considering different factors like: your personal situation (such as having non-working partner, for example), the type of work, your earnings, residency status and other assets (especially those from abroad). Most of the times, you will have to fill a tax return in your home country thus entering the land of double taxation agreements. Take into account your residency status If you can prove your ties to the Netherlands (for example, you live here, you work here or your family is based here) you will fit the category of a ‘resident taxpayer’ from the first day. If you happen to live abroad but your income is taxable in the Netherlands you fit the category of a `non-resident taxpayer`. As a non-resident you can apply to be treated as a resident purely for the tax purpose (if you wish to receive access to Dutch deductible items). The resident taxpayers will be taxed on their assets worldwide. Choosing the Belastingadviseur So the next obvious step would be to hire an emigrant financial specialist that is able to complete your tax forms for you and also provide other consultancy services. What will he exactly do for you? A tax advisor is someone who can give expertise concerning taxation issues and can aid his clients into figuring out the best strategies for a legal return while saving getting back as much money as possible. He can explain the legal jargon of the Tax Codes, and will advise you on your next actions taking into account your particular situation.

The corporate tax system in the Netherlands

Taxable Income The corporate tax in Netherlands goes like this: the Dutch companies have to pay a corporate tax on their worldwide income. Also, foreign companies which hold 5% or more in the issued share capital of a Dutch resident company are also subjected to the Dutch corporate income tax on Dutch-source income but this happens only if the corporate shareholder cannot benefit from any treaty protection. Participation exemption Double taxation won’t be applied if the participation exemption takes place. In order to benefit from the participation exemption you need to meet the following requirements: the entity in which the participation is held must have a capital divided into shares; the shareholder must have an interest in the share capital of the entity of at least 5% the entity in which the participation is held can’t be qualified as a low taxed portfolio investment participation. Regarding the last statement, a participation is considered to be a low taxed portfolio investment company if it fulfils the following conditions: the assets of the participation (directly or indirectly) consist for more than 50% of portfolio investments the effective tax rate of the participation is less than 10%. What is more, if there is an EU/EEA or Dutch resident company which holds 5% or more in the issued share capital of a Dutch resident company, then no withholding tax will be collected upon dividends distributed to this qualifying shareholder. Taxable Year The tax year for a corporation is the same with the calendar year. It is possible to use a different tax year if allowed by the articles of association of the Corporation tax Netherlands . There will be issued a corporate income tax return form by the tax authorities that should be filed until the deadline set by the tax authorities. If there was a preliminary tax assessment imposed during the tax year and the final tax assessment is lower than the preliminary tax assessment then a refund will be granted.

The taxation law in the Netherlands

The tax system in Netherlands, especially for an emigrant, is quite a bit complicated. This is a country which is socially conscious which means that you should expect to pay a substantial proportion (up to 52 percent) of your salary to the taxman. The percentage paid is calculated considering different factors like: your personal situation (such as having non-working partner, for example), the type of work, your earnings, residency status and other assets (especially those from abroad). Most of the times, you will have to fill a tax return in your home country thus entering the land of double taxation agreements. Take into account your residency status If you can prove your ties to the Netherlands (for example, you live here, you work here or your family is based here) you will fit the category of a ‘resident taxpayer’ from the first day. If you happen to live abroad but your income is taxable in the Netherlands you fit the category of a `non-resident taxpayer`. As a non-resident you can apply to be treated as a resident purely for the tax purpose (if you wish to receive access to Dutch deductible items). The resident taxpayers will be taxed on their assets worldwide. Choosing the Belastingadviseur So the next obvious step would be to hire an emigrant financial specialist that is able to complete your tax forms for you and also provide other consultancy services. What will he exactly do for you? A tax advisor is someone who can give expertise concerning taxation issues and can aid his clients into figuring out the best strategies for a legal return while saving getting back as much money as possible. He can explain the legal jargon of the Tax Codes, and will advise you on your next actions taking into account your particular situation.