Corporate Income Tax Return

What is dutch corporate income tax? 

Dutch corporation or corporate income tax is levied according to the Corporate income tax Act of 1969, in Dutch the Wet op de vennootschapsbelasting. Both public and private companies, pay corporate income tax on their profits. This entails both companies established in the Netherlands (resident taxpayers) and some companies not established in the Netherlands, that receive income from the Netherlands (non-resident taxpayers).

Sole proprietorships, freelancers and partnerships do not fall under the corporate income tax. Their profit is taxed with personal income tax.

Exemptions For Dutch Corporate Income Tax 

There are several corporate income tax exemptions, to prevent economic double taxation. The exemption applies to all dividends, gains and losses related to the holding of at least 5% of the shares in a subsidiary.

Also, a reduced rate applies to activities covered by the innovation box. This innovation box provides a tax relief to encourage innovative research. All profits earned from innovative activities are taxed at this special rate.

Corporate income tax rates 2021

Companies pay income tax on their profits, with various additions or deductions. The corporation tax rate depends on the taxable amount. The taxable amount is the gross income minus business related expenses. The first €245,000 will be taxed with a 15% tax rate. The surplus amount above €245,000 will be taxed with a 25% tax rate. However, a proposal has been made to extend the threshold to €395,000 in 2022.

Broadstreet as your tax consultant

At Broadstreet we specialize at providing financial services and advice for expats and companies. Our advisors know exactly how to help you with all your questions about corporation tax, dutch income tax and tax returns. 

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