Fokkerstraat 12 3833 LD Leusden, Netherlands
Fokkerstraat 12 3833 LD Leusden, Netherlands
WHAT WE DO
Everyone who lives or works in the Netherlands or receives income while living in the country is liable to pay taxes in the Netherlands, unless they are here under a special tax regime. Like any country, direct taxation is an important source of revenue for the Dutch government and is collected by the Belastingdienst (Tax Office). The Netherlands has a competitive tax regime i.e. 20% for the first € 250,000 and above that a corporate tax rate of 25%. The KNAV tax team offers a variety of tax services parallel to in-house tax team, independent business advisory, assistance in tax compliance and litigation matters.
Combining technical expertise with professional judgement KNAV can help you in:
- Preparing and filing federal tax returns
- Assisting in implementation of existing / newer tax reforms and related processes
- Enhance tax risk management i.e. clearly defining the tax controls, etc
With access to KNAV’s tax experts in different tax jurisdictions and global professionals, we bring the benefits of cross-border knowledge to our clients. This enables our global clients invest in Netherlands and our local clients expand globally.
With the rapidly changing business environment and a need for transformation, KNAV focuses on processes arising from change in strategy, thereby improving the financial processes and systems. The rapid increase in the complexity in performing business operations due our dynamic market environment, there is an increase in demand for accounting experts and an essential obligation to mitigate the threats hampering growth. KNAV has helped numerous foreign corporations with top-tier risk & accounting advisory services. The need for reporting advice is often driven by wider terms such as:
- Raising finance
- Corporate restructuring
- Improve the decision-making process
- Developing advanced systems to detect and prevent frauds
- Primary and/or secondary research focused on B2B or B2C or others
- Fraud risk assessment
Blending strategy with sound execution and thoughtful decisions we deliver stable business outcomes bring the global benefits.
With growing business operations, situations may arise where you may need to obtain a trusted valuation report. Our personal commitments to the highest standards not only instill a confidence in our clients but also makes analysis concrete and precise. Our experts understand the various external factors affecting your business with an appropriate synthesis of experience and professional judgement. KNAV provides a clear opinion about your valuation questions and strategic decisions driving towards the prosperity of your goal. KNAV has global reach and industry specific expertise to meet your quality valuation needs. KNAV’s valuation team gives client an in-depth understanding of the valuation process. Our open and collaborative methodologies enable the process to be rigorously tested giving client the utmost confidence.
KNAV’S GUIDE TO SET UP A BUSINESS IN NETHERLANDS
For businesses planning to establish their presence in the Netherlands, registration with the Dutch Chamber of Commerce is mandatory. An establishment permit is, however, not required to commence a new business in Netherlands but may be different for some complex and sensitive sectors.
The following types of companies can be incorporated under the Dutch law:
- bv (‘besloten vennootschap’)
BV is a private limited company and can only issue registered shares.
- nv (‘naamloze vennootschap’)
NV is a limited company and can issue registered and (freely transferable) bearer shares. Hence, shares of NV can be listed on a stock exchange.
In order to register the business in Netherlands, knowing the type and structure of business is essential which can be categorized into:
A sole proprietorship is an association of one or more person carrying on a business with a view to making profits.
A corporation is a business structure that is a separate legal entity from its owners where no personal liability for the debts or obligations of the company is assumed by the owners. Corporations can either be public or private.
3. Branch office
A company incorporated in a foreign country may engage in business in the Netherlands through a branch office. Easier to establish than a subsidiary, a branch, unlike a subsidiary, is not considered a separate legal entity, so the associated foreign head office is liable for branch obligations.
4. Foundation (Stichting)
Most often the structure used by non-profit organisations, a foundation is considered a legal entity with no members and is allowed to generate revenue although this is usually used to cover costs.
5. Association (Vereninig)
A non-profit organisation with a goal that has voting members who are generally each allocated one vote. Associations may earn money, but the money must be used for the association goal and may not be distributed to members.
An association may that may pay dividend to the members.
For all companies, except those applying the International Financial Reporting Standards (IFRS) as adopted by the EU in the preparation of their financial statements, the requirements to prepare and file annual reports and the requirement for an audit are determined, inter alia, by the size of that company. Companies are classified as ‘micro’, ‘small’, ‘medium-sized’ or ‘large’ based on three criterions, being (consolidated) total assets on historical cost basis, net turnover and the average number of employees during the financial year.
Medium sized company
Net turnover (in EUR millions)
> 12 and < 40
Total assets (in EUR millions)
> 6 and < 20
> 50 and < 250
Statutory Dutch audit requirements as specified by the existing government regulations, the following rules apply:
- For businesses with a total balance of at least 6 million Euro, and/or
- For businesses with at least 50 full time working employees, and/or
- For businesses with a net revenue of at least 12 million Euro.
For businesses where any two of the three criteria mentioned above are applicable for two consecutive years, regular audits in the Netherlands are mandatory.
KNAV offers a global experience in various different industries and GAAPs encompassing a wide range of accounting principles and policies. KNAV has expertise and experience in conducting audits under several generally accepted auditing standards, using detailed and tailor-made audit procedures on each identified risk area in the company’s processes and financial statements to ensure that they are free from material misstatement. With an in-depth knowledge in Dutch GAAP, IFRS, US GAAP, Ind AS, IGAAP and accounting principles accepted in various countries, KNAV can help you ensure that your financial statements represent a true and fair view of the company’s financial position.
The relief available to the micro, small and medium-sized regimes cannot be used by companies applying IFRS in the preparation of their financial statements, as these unquestionably fall under the large company regime.
The principal requirement for financial statements is that they must be prepared in accordance with generally accepted accounting principlesin the country and provide a true and fair view enabling a well-founded opinion of the entity’s assets, liabilities and results and, as far as the financial statements permit, of its solvency and liquidity.
The auditor’s report must include, among other things, the following points:
(a) Whether the financial statements have been prepared, in all material respects, in accordance with the applicable accounting principles and provide a true and fair view of the financial position and result for the year, (b) Whether the directors’ reportmeets the legal requirements and is free from material inaccuracies; and
(c) The auditoralso needs to include information on materiality, group scoping and key audit matters in the opinion for thesecompanies.
It is not mandatory for micro-sized and small companiesto includea directors’ report, nor do theyhave the requirement for an audit to be performed. Such companiesmay file an abbreviated balance sheet andsmallcompanies only, may file such balance sheets along with explanatory notes with the Chamber ofCommerce. Notwithstanding the general requirements,a micro-sized or small company may at its discretionprepare financial statements based on tax accountingprinciples. As a result, the equity and the profitaccording to the financial statements are equal to theequity and profit according to the corporate tax return.This facility was introduced in Dutch law in order toreduce the administrative burden for small entities.
A medium-sized company must be auditedbut ispermitted to file an abbreviated profit and loss accountas part of the financial statements and is exempt fromincluding certain notes to the balance sheet.
Our proposals comprehensively encompass the scope of our engagements. We estimate the expected time required to be spent on an engagement and arrive at the quotation using our pre-determined charge-out rates. The time spent on the engagements vary depending on the size, nature and complexity of the transactions carried out by the company. This makes our fee estimates competitive and widely accepted.
The annual auditing of financial statements is a statutory requirement in Netherlands based on certain criterions, as discussed above. However, an audit should not be considered as an expense burden to the company but should be seen as a value addition to the existing procedures and policies adopted by the company. The following are notable advantages of an audit:
- An audit helps to validate the adherence of the company’s books of account with legal and regulatory requirements.
- An audit helps to eliminate the errors residing in the accounting procedures of the Company.
- An audit enables the management to identify weaknesses in the internal control systems implemented by the company.
- An audit report is the opinion on whether the Company’s financial statements show a true and fair view of the financial status of the Company, thus enhancing the credibility and reliability of the figures being submitted to prospective investors.
- An audit, besides adding credibility to the financial statements,sprovides assurance to all stakeholders.