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A Dutch BV pays multiple taxes: corporate income tax on profits, dividend tax on distributions, VAT on supplies, payroll tax for personnel, and potentially specific levies such as transfer tax. In addition, the director-major shareholder is liable for Box 2 income tax on dividends and capital gains from the sale of shares. Below is the overview — what you, as a BV entrepreneur, need to know in any case.
Karim — a software developer with a holding structure and 4 employees — was presented with a list of taxes by his accountant in his second year that he didn't fully understand. Hence this overview for those just starting out or wanting to do a check.
The short answer
- Corporate income tax (Vpb): 19% on the first €200,000 of profit, 25.8% on the excess (2024).
- Dividend tax: 15% withholding tax on distribution to shareholders.
- VAT (sales tax): 21% standard, 9% reduced, 0% exempt.
- Payroll tax: for personnel via payroll administration.
- Box 2 (director-major shareholder): 24.5% on the first €67,000 in dividends, 31% on amounts exceeding that (2024).
- Other: transfer tax, municipal levies, environmental taxes.
Corporate Income Tax
Tax on profits of the BV (Article 7 Corporate Income Tax Act). Rates 2024-2025:
- First €200,000 of profit: 19% (low rate).
- Above €200,000: 25.8% (high rate).
File no later than 5 months after the end of the financial year — usually late May for the calendar year. Extension of up to 1 year is possible via an accountant. For the return itself: corporate income tax return.
VAT (sales tax)
Most entrepreneurs charge VAT on supplies:
- 21%: standard rate.
- 9%: reduced (food, books, public transport, etc.).
- 0%: exempt (export, certain services).
VAT return usually quarterly; for small businesses, KOR scheme (turnover < € 20,000 → VAT-exempt). More in VAT return.
Dividend tax
15% withholding tax on dividends distributed by a BV to shareholders. The BV withholds this and remits it to the Tax and Customs Administration. In the case of distribution to a private shareholder: can be offset against Box 2.
For distributions between BVs (parent-subsidiary) under the participation exemption: no dividend tax. See participation exemption.
Box 2 for the director-major shareholder
When dividends reach the private shareholder (director-major shareholder with ≥ 5% interest):
- First €67,000 in 2024: 24.5%.
- Above that: 31%.
Two-tier rate since 2024 — intended to spare directors/major shareholders with small distributions. See substantial interest.
Payroll tax
For employees (and director-major shareholders with a customary salary), the employer withholds payroll tax:
- Wage tax (prepaid income tax).
- Employee insurance premiums.
- National insurance premiums.
- Income-dependent health insurance contribution.
File monthly or every four weeks via payroll administration. For the WKR (tax-free allowances): see the Work Expenses Scheme.
Other taxes
- Transfer tax: 10.4% on the purchase of commercial property (2024). See transfer tax commercial property.
- Municipal levies: property tax, sewage levy, waste levy.
- Environmental taxes: energy tax, waste tax.
- Landlord levy: for social housing.
Tax optimization
Many possibilities for SME limited companies:
- Holding structure: participation exemption for dividends between BVs. See why a holding company.
- Innovation Box: 9% corporate income tax rate on innovative profit — see Innovation Box.
- Corporate Income Tax Fiscal Unit: offsetting losses between affiliated BVs.
- WKR: making smart use of available space.
- Optimal customary salary: balance between salary and dividend.
Honest recommendation
BV taxes are complex but manageable. Engage an accountant from day one — not only for compliance but also for optimization. The advisor more than pays for the savings on the right structure (holding company, fiscal unity, dividend timing).
For specific topics: Corporate income tax return, participation exemption, substantial interest.
Frequently Asked Questions
Corporate income tax (on profit), dividend tax (15% withholding tax), VAT (on supplies), payroll tax (for personnel), and specific levies such as transfer tax. In addition, the director-major shareholder pays Box 2 tax on dividends and capital gains from the sale of shares.
In 2024: 19% on the first €200,000 of profit (low rate), 25.8% on the excess (high rate). Return must be filed no later than 5 months after the end of the financial year, with the possibility of an extension via an accountant.
Box 2 income tax for substantial shareholders (≥ 5% of shares). 2024 rate: 24.5% on the first €67,000, 31% on amounts exceeding that. Applies to dividends and capital gains from the sale of shares when held privately.
Usually quarterly. Monthly for higher turnover. Small business owners (turnover < €20,000) can opt for the KOR scheme: VAT-exempt but no deduction of input tax.
Yes, subject to conditions. For corporate income tax: parent company owns ≥ 95% of subsidiary. Advantage: offsetting profits and losses, intercompany transactions without tax consequences. See corporate income tax consolidation.
15% withholding tax on dividends from a BV. Upon distribution to a private shareholder, deductible from Box 2 income tax. Upon distribution between BVs (parent-subsidiary) under the participation exemption: 0%.
Compliance (corporate income tax, VAT, and payroll returns) plus tax optimization (holding structure, innovation box, fiscal unity, WKR, customary salary). Virtually indispensable for SME BVs — not as an expense, but as an investment.
