Maintaining your US Inc in the Netherlands. That is often a desire for many reasons. We will be pleased to assist you.
Maintaining your US Inc in the Netherlands
The first question we have with respect to an US Inc is the type of Inc. In our opinion there are two types. One is the true corporate type. There is a share capital, director appointed and corporate income tax is being paid.
The other is transparent. No director appointed, and the participant reports his or her result from the Inc in the personal income tax return.
Why maintain your US Inc when you are in the Netherlands?
For both types of US Inc the reason to continue the US Inc while being in the Netherlands can be identical: the clients. The US customer finds it more pleasant to work with an American company. The US customer finds it easier to pay locally, instead of internationally.
We have the opinion that you can operated from the Netherlands the US Inc, but the result of that Inc is to be reported in the Netherlands.
Dutch tax obligations
The true corporate US Inc needs to register with the Dutch Chamber of Commerce a branch. The branch is then subject to Dutch corporate income tax, Value Added Tax and wage tax.
The Value Added Tax for clients only residing outside the EU is not a problem, most likely. The Dutch wage tax has minimum salary rules, involves Dutch wage tax. You probably already know the tax rates, you need to get used to that. We all had.
Accounting
The accounting for both the corporate Us Inc and the transparent Us Inc are identical. The Dutch branch of the US inc needs to invoice the US Inc head office for its Dutch services. The transparent Us Inc needs to register a company with the Chambers of Commerce that is a ZZP type of company. Also send in invoice to the USA. Both invoices are without VAT.
The US result after this invoice should be zero. Than you justified in my opinion the existence of the US Inc while residing in the Netherlands, being the servicing of the US client in the USA.
Keep in mind that the US rules might have obstacles in place, hence execute this with the help of your US accountant.
Tax is exciting
We think tax is exciting. We are excited to assist you with your US Inc. The moment you update us what type of US Inc you have, we are ready to get started.
