Do I need to pay capital tax when I deposit share capital for my limited company?
No, since January 1, 2006 the capital tax in the Netherlands is reduced to zero.
Capital tax was levied on the raising of capital or equity by a legal entity, and was levied on that legal entity itself.
The capital tax rate was 0.55%. So when someone established a BV and deposited a capital of 18,000 euros, he owed a capital tax of 99 euros on the BV. When a large public limited company wanted to issue shares it also had to pay capital tax. Since the numbers of shares are much larger here, the tax could rise sharply. If 50 million in nominal capital was issued, an amount of 275,000 euros was owed: a considerable amount.
However, the majority of the companies consists of sole proprietorships with a minimum capital. 99 euros can be missed on an amount of 18,000 or more, but it does create hassle for the entrepreneur. On the other hand, with the tax authorities, the costs of checking the returns and assessments approximate the revenues. For this reason, the capital tax has been abolished as of January 1, 2006, following the example of most other European countries.