1. The Dutch B.V. For Tax Planning By Robert Hek
Paritax International Tax Advisors (Cyprus) / Fundatio B.V. (the Netherlands)

2. The Netherlands EU member
Natural hub for logistics and headquarter functions
High educated, multi cultural and multi-lingual workforce
High level of infrastructure
Good economic and financial climate
Political stability

3. The Netherlands
One of the major and reputable international Business centers
Tax Treaties with more than 90 countries
Good Banking system
Advantageous Tax System especially with respect to taxation of dividends, royalties and interest
Tax Rulings possible

4. The Dutch B.V.
One or more 'incorporators’ possible, being either individuals and/or legal entities;
No secretary is needed;
One or more directors possible;
If one shareholder, his name will be registered as such in the certificates of registration of the BV issued by the trade register.

5. The Dutch B.V. Share capital
The incorporator can choose how high the share capital will be, which can even be € 1.
There must at least be one share with one voting right.
A share can have a voting right, a profit right or both.

6. The Dutch B.V.
Audit
The audit must be performed by external auditors and annual accounts have to be published when (2 out of 3 requirements must be met) : - the company's turnover exceeds EUR 12 million - the balance sheet totals over EUR 6 million - the average number of employees is 50
Time Frame
The procedure of incorporation usually takes 2 to 4 weeks.

7. Dutch Corporate Tax highlights
Which companies pay tax in the Netherlands?
Corporations in the Netherlands (resident taxpayers)
Corporations not established in the Netherlands which receive income from sources in The Netherlands (called non-resident taxpayers)

8. Dutch Corporate Tax Highlights
Dutch Tax Resident
Whether a corporation (not incorporated under Dutch law) is tax resident in The Netherlands depends on the facts and circumstances, such as - place of the effective management - the location of the head office - the place where the general meeting of shareholders is held.
Under the Corporation Tax Act, all corporations incorporated under Dutch law are tax resident in the Netherlands unless tax treaty overrules this fiction.

9. Dutch Corporate Tax Highlights
SUBSTANCE REQUIREMENTS
Substance requirements that should be met by so-called financing flow-through ruling companies (dividend / interest / royalties):
At least 50% of the Board of Directors (BOD) members should be Dutch residents (live and work there) and of a certain professional level and the company has adequate staff (itself or from 3rd parties) for performing the functions;

10. Dutch Corporate Tax Highlights
All key strategic/material decisions of the BOD should be taken in the Netherlands, such as the entering into contracts and signing of documents
The main bank account should be held in the Netherlands
The bookkeeping is maintained in the Netherlands

11. Dutch Corporate Tax Highlights
The address of the company should be in the Netherlands.
The company is not considered a tax resident in another state on the basis of a tax treaty.
The company has sufficient equity considering its activities and the risks to be absorbed by the company.

12. Dutch Corporate Tax Highlights
The current corporate income tax rates are: 
Taxable profit up to and including € : 20%
Taxable profit above € : 25%

13. Dutch Corporate Tax Highlights
The loss carry forward period is restricted to 9 years
The loss carry back period is restricted to 1 year.

14. Dutch Corporate Tax Highlights
Interest is generally deductible. In some situations however, limitation rules may apply.
Limitation on the deductibility of inter-company interest can affect on interest paid on debts arising from:
unpaid dividends to the parent company;
the acquisition of the shares of a company from a group company through an intercompany loan.

15. Dutch Corporate Tax Highlights
Thin capitalization rules are applicable for all taxpayers. A Dutch entity is not affected by the thin capitalization rules in the following situations:
The entity is not part of a group;
There is no debt to a related party;
The interest income from related parties equals or exceeds interest expenses to related parties;
Certain debt – equity ratio’s are satisfied;

16. Dutch Corporate Tax Highlights
Related party transactions / arm’s length pricing
Transactions between related parties that are not concluded at arm’s length basis may be disregarded or may be adjusted appropriately.

17. Dutch Corporate Tax Highlights
The participation exemption applies if:
The taxpayer owns (generally) at least 5% of the capital of its subsidiary (no minimum holding period) and
The subsidiary is not held as portfolio investment (“portfolio investment subsidiary”)

18. Dutch Corporate Tax Highlights
If the participation exemption applies, dividends and capital gains arising in respect of shareholdings by a Dutch parent company are free from corporate income tax.
Capital losses are available upon liquidation of the participation.
Expenses regarding a foreign subsidiary are tax deductible.

19. Dutch Corporate Tax Highlights
Withholding Tax
Dividends, whether paid to resident or non-resident recipients, are subject to withholding tax at 15%.
A reduced percentage may be provided by a double tax treaty.
No withholding taxes on royalties and interest.

20. Dutch Corporate Tax Highlights
No withholding tax when a dividend is paid by a Dutch company to a European parent company that owns at least 5% of the capital (or voting rights) (European Parent – Subsidiary Directive)

21. Dutch Corporate Tax Highlights
Double Tax Treaties with 91 countries are in force per October 1, 2013, including; - Russia - Ukraine - Belarus - Georgia - Latvia - Lithuania - Estonia

22. Dutch Corporate Tax Highlights
Tax Information Exchange Agreements (TIEA’s) are signed with 29 countries, , including: - Belize
- British Virgin Islands
- Cayman Islands Liechtenstein Marshall Islands Seychelles
No Double Tax Treaty or Tax Information Exchange Agreement is signed between the Netherlands and Cyprus;

23. DTT Russia – the Netherlands
Paid Russia -> Netherlands Withholding tax
Netherlands -> Russia
- Dividend % * / 15%
Interest %
Royalties %

24. DTT Russia – the Netherlands
5 per cent of the gross amount of the dividends if the beneficial owner of the dividends is a company (other than a partnership) which: - holds directly at least 25 per cent of the capital of the company paying the dividends and - has invested in it at least € 75,000 or its equivalent in the national currencies of the Contracting States;

25. DTT Ukraine – the Netherlands
Ukraine -> Netherlands Withholding tax
- Dividend %*/5% ** / 15%
Interest %*** / 10%
Royalties %****/10%

26. DTT Ukraine – the Netherlands
* 0 per cent of the gross amount of the dividends if the beneficial owner of the dividends is a company (other than a partnership) which: - holds directly at least 50 per cent of the capital of the company paying the dividends and - the investment in the capital of the dividend paying company is at least USD

27. DTT Ukraine – the Netherlands
** 5 per cent of the gross amount of the dividends if the beneficial owner of the dividends is a company (other than a partnership) which: - holds directly at least 20 per cent of the capital of the company paying the dividends

28. DTT Ukraine – the Netherlands
*** 2% rate applies to interest paid on loans granted by a banking / financial institution or to interest paid by the purchaser of machinery and equipment to the seller in connection with a sale on credit;
the 10% rate applies in all other cases.

29. DTT Ukraine – the Netherlands
****0% rate applies to royalties paid for a copyright of scientific work, a patent, trademark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.
The 10% rate applies to royalties paid for the use of, or the right to use, a copyright of scientific work, (including cinematograph film and films or tapes for radio or television broadcasting).

30. DTT Ukraine – the Netherlands
Netherlands -> Ukraine Withholding tax
- Dividend %*/5%** / 15%
Interest %
Royalties %

31. Russian / Ukraine Company
Beneficial Owner
Russian / Ukraine Company
Dividend 0%
Interest 0%
Royalties 0%
Cyprus Company
Dividend 0%
Interest 0%
Royalties 0%
Dutch Company
Dividend
Interest
Royalties
The rate of the withholding tax depends on the specific tax treaty or the EU parent – subsidiary directive.
Subsidiaries