Test one: where the company is registered

A BV (besloten vennootschap, the Dutch private limited company) set up by a Dutch notary is a Dutch company by incorporation. For most creators, this means the company pays corporate tax in the Netherlands. The company files its tax returns there. It pays 19% tax on profit up to €200,000 and 25.8% above that.

Test two: where it is managed

For the second test, the tax authorities look at where the company has its effective management. They look at where the board takes decisions, where contracts are signed and where the strategy is set. Say you relocate to another country and manage the company from your new kitchen table. That country can then treat the company as its own tax resident. Two countries then claim the same company, and you want to prevent that. Tax treaties have a tie-breaker rule for this case.

In practice, your company is taxed where you live and work, whatever address is on the letterhead.

What counts as substance

  • You reside in the country and spend your working time there.
  • Board decisions are taken and recorded there.
  • The company has its own address, its own bank account and its own bookkeeping.
  • Contracts with platforms and clients name the company, and payments go into its account.

If you meet these four points, another country has little ground for a claim. You can read more about the address in deciding your address and about the bank account in banking in Amsterdam.

Your own tax residence

The same rules apply to your own tax residence. You are a tax resident where you live, work and keep the centre of your interests. That country taxes your salary and dividend. Your own tax residence is separate from the tax residence of your company.

While a new BV is still unable to pay the full customary salary, you may take a lower one for up to three years. A prior consultation with the tax authority gives certainty in advance. You can combine this with borrowing up to €500,000 from your own BV. The lower salary is what saves tax. At €36,000 compared with €58,000, you keep about €7,100 a year more. After a later dividend, about €2,800 of that remains. The loan gives you access to money, but your tax stays the same. Calculate it with your own figures. These salary rules apply to your Dutch BV, so the prior consultation is with the Dutch tax authority.

Why creators trip over this

Your income can come from anywhere. Many creators therefore register the company in a convenient country and live somewhere else. Two countries can then both claim the company, and you get less protection from each of them. Keep yourself and your company in the same country, for the long term. See start here for all the steps. Many creators ask about the Netherlands or Dubai.