In November 2019, the representatives of the Dutch government adopted a plan to reduce the corporate tax rate for all businesses from 2021. However, in September 2020, they decided to cancel this plan. Thus, the tax rate for companies will not be revised and will remain at 25% instead of planned 21.7%.

However, there will still be some changes for small businesses. In particular, the tax for the companies whose profit does not exceed 245,000 EUR (290,000 USD) will be levied at the rate of 15% instead of 16.5%, as it was in 2020. It is also planned to increase the profit threshold at which the business can be considered small. The threshold is expected to increase from 245,000 EUR to 395,000 EUR from 2022.

The tax changes will prevent companies from using tax savings to recover their own losses. The government will also tighten the rules of non-compliance mechanisms. The environmental tax amounting to 30 euros per ton of carbon emitted during production will also be introduced for companies from 2021.

Law & Trust offers its services to the corporate clients working in the Netherlands. Our experts will advise you on tax issues and take all the necessary measures for tax optimization.