1. TAXPAYERS
22. The liability of a company to the company tax depends upon its nature and upon whether it is resident or not in N.E.I. The company tax is payable by a resident share company (naamloose vennootschap), or limited partnership with share capital (commanditaire vennootschap op aandeelen), other associations whose capital is entirely or in part divided into shares, co-operative societies and mutual insurance companies on their total income, from all sources. Non-resident companies, limited partnerships with a share capital, and other associations whose capital is wholly or partially divided into shares are taxable only in respect of specified items of income (see paragraph 25). The company tax is also payable by associations, organised in N.E.I. with no share capital and not being partnerships, in respect of income from business activities other than activities conducted for the general welfare.
23. The term “resident” is used in the preceding paragraph to interpret the word “gevestigd”, which is used in the Company-Tax Ordinance. This word is not defined in the Ordinance; but, according to a decision rendered by the Chief Inspector of Taxes,1 it indicates the place where a company has its registered office. If the company’s real centre of management (hoofdleiding) is in another country, then the latter is the deciding factor in determining the extent of tax liability. Thus, if the registered office is in N.E.I., where the company was organised, but if the directors live and meet in another country, and if the annual meeting of shareholders takes place and the central book-keeping is maintained in the other country, the company will be treated as resident in that country.
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