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How long must a Dutch company keep its business records?

Kevin Tieman ·

Short answer

A Dutch company keeps its accounts for seven years, and records about property for ten. That is the tax retention period (set by the Dutch Tax Administration), and it covers digital records too, including business email that holds agreements. Personal data works the other way round: the GDPR says you keep it no longer than needed. A job application goes after four weeks, a staff file usually two years after the person leaves.

Why do two rules seem to contradict each other?

Because they come from two directions. The Dutch Tax Administration (Belastingdienst) wants you to be able to show what happened, so it requires you to keep records. The GDPR (the AVG in the Netherlands) protects the people you hold data about, so it requires you to throw things away.

They clash less than they seem to. The tax rule is a valid reason to keep something, also under the GDPR. It comes down to this: keep what you must keep for as long as you must, and the rest no longer than you need it.

Which periods apply?

These are the periods for a company in the Netherlands.

What Period Where it comes from
General ledger, debtors, creditors, sales and purchases, stock, payroll records 7 years Dutch tax retention period
Records about property 10 years Dutch tax retention period
Wage tax declaration and copy of ID document 5 years after employment ends Payroll tax rules
Appraisals, meeting notes and the like from the staff file Guideline: 2 years after employment ends GDPR
Application data of rejected candidates Guideline: 4 weeks after the process ends, longer only with consent GDPR
Camera footage Guideline: 4 weeks GDPR

This is an overview for the ordinary situation. Some sectors have their own rules, such as healthcare, notaries and lawyers. The periods for the accounts are set by the Tax Administration. For personal data the guidelines come from the Autoriteit Persoonsgegevens, the Dutch Data Protection Authority. Your accountant or lawyer knows the exceptions for your company.

Watch when a period starts. The seven years begin when a document loses its current value. A contract that runs for four years is kept for those four years and then for another seven.

What does that mean for your IT?

This is where it gets practical. The periods are known. The question is whether your systems follow them.

Mailboxes of people who have left. The account is deleted, and with it the last few years of correspondence with customers. This is where companies most often break their retention duty without noticing. Convert such a mailbox into a shared mailbox, or make sure it sits in a backup. See an employee leaving.

The recycle bin is not an archive. In Microsoft 365 a deleted file is gone for good after 93 days. Keeping something for seven years only works with a retention policy or a backup that reaches back that far. We explain the difference in is OneDrive a backup.

Files that must stay readable. A backup of the accounting package from 2020 is worth nothing if the package no longer exists. When you switch, export the accounts to a format you can still open in seven years.

Job applications in everyone’s inbox. A CV goes by email to three colleagues and stays there for years. A separate address for applications, in a shared mailbox that is emptied now and then, fixes that.

How do you set it up?

  1. Make a list of the kinds of data and write the period and the location next to each. One page is enough.
  2. Set a retention period for the backup that matches your longest duty. For most companies that is seven years for email and accounts.
  3. Use retention policies where you can. Microsoft 365 can hold email and documents for a fixed period, even when a user deletes them, and clear them afterwards.
  4. Agree who clears up. Staff files and applications do not disappear by themselves.
  5. Test whether you can open something from years back. A retention duty you only meet on paper does not help in an inspection.

With a Microsoft 365 backup we choose the retention period together, and with backup and recovery the same goes for servers and shared folders. What has to be in it, you decide with your accountant. We make sure it is still there in seven years.

Questions

Does email fall under the tax retention period?

Yes, as far as the email matters for tax. A message with a quote, an order confirmation, a price agreement or an invoice attached belongs to the accounts, and you keep it for seven years. An email about lunch does not. Because you cannot sort this message by message in practice, most companies keep their business mailboxes as a whole for seven years.

Can you throw away paper records after scanning them?

In most cases, yes, under conditions. The scan must be a correct and complete copy, stay available for the whole retention period and be readable within a reasonable time. A few documents, such as the balance sheet and the profit and loss account, are exceptions. The Dutch Tax Administration calls this conversion. Record how you scan and check, and keep a backup of the digital archive.

How long do you keep a staff file after someone leaves?

As a guideline, two years after employment ends for items such as appraisals and meeting notes. Wage tax declarations and the copy of the ID document are kept for five years after employment ends. The payroll records themselves fall under the seven-year tax retention period. After that the data must go, including from folders and mailboxes where a manager saved it themselves.

Does a backup have to be cleaned up too?

Yes, in the sense that data may not sit in backups for ever. You do not have to open every backup to remove one file. It is usual to set a fixed retention period for backups, after which old copies drop off by themselves. Write that period down, and make sure something you deleted does not quietly return when a backup is restored.

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