Doing Business in the Netherlands 2012 - American Chamber of ...

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eduction in wage withholdings (i.e., wage tax and certain social security contributions) withheld from the salary of experts engaged in research and development in the Netherlands. This results in a decrease in R&D labor costs, which benefits the employer. The reduction for a given year is 50% (2012: 46%) of the wage withholdings on R&D wages up to EUR220,000 (2012: EUR110,000). For companies who qualify as a start-up the percentage is increased to 64% (2012: 60%). The reduction for wages in excess of EUR220,000 (2012: EUR110,000) is 18% (2012: 14%) of the wage withholdings. The total annual reduction in wage withholdings is maximized at EUR14,000,000. Self-employed persons may request a reduction of their taxable profit of EUR12,104 (2012: Indexation). First time self-employed persons may request an additional reduction of EUR6,054 (2012: Indexation). Qualifying R&D activities are awarded a so-called R&D declaration (S&O verklaring) by the Ministry of Economic Affairs, Agriculture and Innovation. Such intangible assets may also benefit from the Patent/Innovation Box facility as described above. 21.5.2 Innovation Credit This program was set up by the Ministry of Economic Affairs, Agriculture and Innovation in order to offer support to innovative companies in the small- and medium-sized business sectors (SME). It entails an interest bearing loan for up to 35% of the costs of technical development of a new product, with a maximum of EUR5,000,000. In case the project fails or is aborted for commercial reasons, the loan may be released. If the project succeeds, the loan, plus interest, must be repaid within six years. 232 Baker & McKenzie
22 Financial Regulations 22.1 Exchange Control Regulations Doing Business in the Netherlands 2012 No license or notification requirement applies to the making of payments in euro between residents and non-residents. However, pursuant to the 1994 Foreign Financial Relations Act (Wet financiële betrekkingen buitenland 1994) and the 2003 Reporting Provisions (Rapportagevoorschriften betalingsbalansrapportages 2003), certain designated residents are required to report specific foreign payment information to the Dutch Central Bank (De Nederlandsche Bank, or DNB) on a regular basis. These reporting requirements are designed to enable DNB to establish the balance of payments of the Netherlands. DNB has established certain specific institution profiles (e.g., banks, central securities depositaries, undertakings for collective investment). The nature of the foreign payment information to be provided to DNB by a resident designated as reporting entity depends on the category of institution to which such resident belongs. The designation of a resident as “reporting institution” by DNB is based on certain criteria, e.g., international payment volume and frequency. DNB may also request specific information from resident institutions that have not been designated as reporting institutions. Pursuant to the 2003 Reporting Provisions, the so-called “Special Finance Companies” (Bijzondere Financiële Instellingen) that are incorporated or established in the Netherlands are subject to a (proactive) notification requirement within three weeks following their establishment or incorporation in the Netherlands. “Special Finance Companies” may also qualify as a “bank.” Please be referred to section 17.2.1 Banking activities of this chapter in that respect. In principle, no license is required for the repatriation of capital, loans, interests, dividends, branch profits, royalties and fees as long as the Baker & McKenzie 233
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Editorial Contributions Robert van
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Innovative ways to inform you Doing
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1 The Netherlands Doing Business in
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Steady-Course Policy Doing Business
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2 Legal Forms of Doing Business Doi
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