Tax audit processĬorporate taxpayers might be subject to audits by tax inspectors. Interest is calculated on late payments or refunds of Dutch dividend WHT. If a corporate taxpayer is entitled to a refund of Dutch CIT or dividend WHT because the levy appeared to be in conflict with EU law, the Netherlands might be obligated to repay the unduly paid tax with interest corresponding to the period from the payment of levy to the refund of such levy to the taxpayer. The interest is calculated from six months following the financial year. The CIT assessed must be paid within six weeks from the date of the provisional or final assessment. Any conversion result of the foreign currency to euros is no longer recognised under this regime for Dutch tax purposes. Under the functional currency regime, the taxable amount is annually converted from functional currency into euros against the average of the exchange rate during the financial year (as published by the ECB). A fiscal unity for Dutch CIT purposes is eligible for the functional foreign currency regime, provided that all of the companies that are part of the fiscal unity have obtained permission to apply that regime.

The foreign currency to be applied is one of the currencies for which a ‘euro foreign exchange rate’ is published by the European Central Bank (ECB).The foreign currency to be applied for tax purposes is also applied in the commercial accounts of the taxpayer, which currency is justified by the business conducted by the taxpayer or the international position of the group the taxpayer is part of.If the request is granted, the functional foreign currency applies for at least ten years.The decision made by the tax inspector on the request is open to appeal. A request must be submitted with the tax inspector prior to the year as of which the regime is requested.The main conditions of the regime are as follows: Under certain conditions, the CITA, however, allows the corporate taxpayer to file its tax return in a currency other than euros (the so-called 'functional currency regime'). Functional foreign currency regimeĪs a main rule, the CIT return should be filed in euros. The Dutch tax authorities may issue an additional assessment if it appears that the amount of CIT due (as calculated in the final assessment) is too low.ĭuring the current tax year, a provisional assessment can be issued on the basis of prior years’ taxable income or on an estimation provided by the taxpayer. This period is prolonged with the time of the extension for filing the tax return. The final assessment must be issued within three years following the financial year it concerns. The Dutch tax authorities generally make a provisional assessment before issuing the final assessment. This filing due date may be extended upon the taxpayer's request. The due date is generally five months after the end of the company’s financial year. Tax returnsĬorporate taxpayers are required to file a tax return annually.

However, corporate taxpayers may deviate from this by adopting a different financial year. Generally, the tax year is equal to the calendar year.

Last year tax return