Netherlands Corporate Tax Rate Will Be Reduced

Manno Snel, the Dutch state secretary for finance, introduced a bill on tax breaks, which was drafted jointly with government officials. If adopted, the law will enter into force in 2020. It proposes a number of important amendments that will simplify doing business in the Netherlands, one of which is the reduction of corporate tax.

The last time the corporate tax rate was revised in 2018. Then it was approved at 25% with an income of up to 200 thousand euros. Under the new bill, it may drop to the level of 22.5% in 2020, and to 20.5% in 2021. For companies whose income exceeds 200 thousand euros, the rate is 25%. It will be changed only in 2021, and it is planned to reduce it to 21.5%.

Profit tax will also be revised. In particular, in 2020 they plan to reduce it to 16.5%, and to 16% in 2021. It is planned to limit the deduction of losses when closing separate divisions, which can replenish the budget of the Netherlands by 265 million euros annually. But the tax rate on income from the sale of intellectual property rights, on the contrary, will increase, from 7% to 9%.

Law&Trust offers assistance to all legal entities and entrepreneurs who already work or plan to open a business in the Netherlands. The company's lawyers will advise on the main issues of doing business in the country, help register your own company, choose your preferred tax regime, etc.