Directors’ remunerations taxed in the Netherlands

We regularly see it in our international practice. The foreign parent company as director of the company with its registered office in the Netherlands. Directors’ remunerations are taxed in the Netherlands. If you, as a foreign company, are director of a company with its registered office in the Netherlands, you will be regarded as a foreign taxpayer in the Netherlands for this administrative work.

Corporate tax

The proceeds of this administrative work minus the related costs (such as salary) will be included in the Dutch corporate taxation. 

Both statutorily appointed directors and substantive directors

Up to and including 2013 the above-mentioned scheme only applied to statutory directors. Since 2013 this scheme has also applied to substantive administrative work. The Netherlands has therefore extended its right to levy tax.

We will explain the directors’ remunerations in the Netherlands in our White Paper; Directors’ remunerations taxed in the Netherlands. You will receive the White Paper free of charge in your mailbox through the form below.