Dutch Taxes – Part 3: Box 2

Today we will look at taxes if you own a company or have a considerable interest in one. Today we have the Dutch Taxes – Part 3: Box 2

Dutch Taxes – Part 3: Box 2

Taxation in Box 2 is only applicable when you have a “sizeable interest” (“aanmerkelijk belang”) in a foreign or domestic corporation (“vennootschap”). The first questions that pops up is, what is considered a “sizeable interest”?

For 2015, the taxman has defined this as owning a 5% interests or more of the following:

  • Shares (aandelen) in either a foreign or domestic corporation,
  • “Profit statements” (“winstbewijzen”) in either a foreign or domestic corporation,
  • (monetary)benefits (“genotsrechten”) resulting from shares or profit statements (as noted above),
  • Voting rights (“stemrechten”) in either a foreign or domestic corporation. and,
  • Options in either a foreign or domestic corporation, which when executed would be above the noted 5% threshold.
Dutch Taxes – Part 3: Box 2
Dutch Taxes – Part 3: Box 2

Dividends?

Once you know if you have a sizeable interest in the company, the next step is to determine if you enjoyed the following incomes as a result. You will be taxed on the income of the following:

  • Dividends; and,
  • Profits made by selling shares.

There are also deductions in Box 2, for examples interest on loans used to obtain the “sizeable interest”. Furthermore, applicable personal deductions (“persoonsgebonden aftrek”), that you cannot use in Box 1 or Box 3, may be used on Box 2 to reduce taxes.

The tax rate  in Box 2 is a fixed 25%. This is applied on the income in Box 2 minus any applicable deductions.

 

How about you, do have you had income from Box 2?

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