Participation exemption

One of the pillars of the Netherlands’ Corporation Tax Act is the ‘participation exemption’. This exemption protects companies from double taxation in the event that a subsidiary channel its profits back to the parent company.

To prevent double taxation on other sources (the participation exemption does not apply on income), the Netherlands has entered into over 80 bilateral tax treaties with other countries regarding the prevention of double taxation. These tax treaties apply both to residents of the Netherlands and to those of the treaty countries.

Visit the website of the Belastingdienst for more information