Corporate Income Tax

Knowledge Base.

Corporate Income Tax (Vennootschapsbelasting - VPB)

In 2021 the corporate income tax rate will be 15% on the first € 245,000 of taxable profits and 25% for taxable profits exceeding € 245,000.

In the next year the Dutch corporate income tax rate will be gradually be reduced as follows:

> 2021: 15% on profits up to € 3950,000 and 25% on profits above € 395,000

The maximum period for the carry forward of tax losses will be six (6) years (upto 2019: nine (9) years).

Carry back period of 1 year.

Dividend Tax

Companies can distribute some of their profits as dividend to their shareholders. Dividends are subject to withholding tax. The general rate of dividend withholding tax is 15%.

In some circumstances, a company may be entitled to partial or full exemption from dividend withholding tax or to a dividend tax refund.