The entities

BV (besloten vennootschap): the Dutch private limited company; it owns the business, signs the contracts and pays corporate tax. Holding: a second BV that owns the shares of the first, holding the wealth and the intellectual property one floor above the risk. DGA (directeur-grootaandeelhouder): the director-major shareholder — you, wearing both hats. KVK: the Chamber of Commerce, keeper of the public business register. eHerkenning: the digital login for the Dutch government and tax portals through which filings run.

The taxes

Box 1: progressive personal tax on salary and business income, topping out at 49.5%. Box 2: the tax on substantial shareholdings (5%+) — dividends and share gains, at 24.5% up to €68,843 and 31% above (2026). Box 3: the private wealth tax — a notional yield taxed at 36% above the €59,357 allowance, moving to actual returns per 2028. VPB (vennootschapsbelasting): corporate income tax — 19% up to €200,000 of profit, 25.8% above. BTW: Dutch VAT — 21% general, 9% reduced, 0% mainly for exports; OSS (One Stop Shop) declares EU-wide consumer VAT in one Dutch return.

The rules with nicknames

Participation exemption (deelnemingsvrijstelling): profits and gains from a 5%+ shareholding flow to the parent tax free — the rule that makes holdings work. Customary salary (gebruikelijk loon): the minimum salary a DGA pays themselves, set by three benchmarks and negotiable downward in a growth phase. Excessive borrowing: shareholder debt to the own BV above €500,000 is taxed as deemed dividend; a secured own-home loan sits outside the cap. Dividend withholding: the 15% the BV withholds on distributions, creditable against box 2. Protective assessment (conserverende aanslag): the deferred box 2 claim issued when a shareholder emigrates — collecting only on later sale or distribution.

The reporting layer

DAC7: the EU directive making platforms report their sellers to tax authorities above roughly €2,000 or 30 transactions a year. CRS (Common Reporting Standard): the worldwide exchange of bank account data between tax authorities. DAFT: the 1956 Dutch-American treaty giving US citizens a residence route via a €4,500 business investment. Expat ruling: the scheme making up to 30% (27% for new cases per 2027) of a qualifying incomer's salary tax free for five years.

Every term links onward from the pages that use it — start anywhere via the question index.

What comes after this

Two pages sit directly alongside this one: creators/where-your-company-is-taxed and creators/start-here.