Direct taxes - Corporate Income Tax

    Generic part

    Corporate income tax
    Vennootschapsbelasting
    NL - Netherlands
    EUR
    Date
    Year
    1969/01/01
    2019/01/01
    2019/02/11 11:56:34

    Contact information

    Administration

    Service

    Website

    E-mail

    Telephone

    Who sets

    The tax rate is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The tax base is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The reliefs are set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    Beneficiary

    • Central authority
    • Regional authority
    • Local authority
    • Social security
    • Others

    Geographical Scope

    NL - Netherlands
    The Dutch corporate income tax law is applicable in the European part of the Dutch Kingdom, including territorial waters and the Netherlands' part of the continental shelf.
    No Yes

    Taxpayers

    Which entities are liable for CIT?

    • Legal persons
    • Organizational units having no legal personality
    • Tax capital groups
    • Associations
    • Foundations
    • Companies having their seat or management office in other countries, provided that in their country they are treated as legal persons and are subject to tax on income
    • Public corporations
    • Others

    Which entities are exempt from CIT?

    Certain public corporations providing typical public goods/services (i.e. hospitals, educational institutions). Furthermore exempted are: non-profit welfare organizations, pension funds, public libraries, non-profit organizations. Finally, some specific investment institutions are exempt if they fulfill certain conditions (one of which is an obligated dividend distribution).

    Domestic-source income of non-resident entities is

    Taxed
    Not Taxed

    Tax object and basis of assessment

    As general rule, taxable income under corporate income tax includes also

    • Interest
    • Royalties
    • Dividends
    • Capital gains
    • Income from immovable property
    • Income from movable property not listed above
    • Income from agriculture

    Income considered

    Domestic income
    Worldwide income (subject to double-tax relief)

    Deductions, allowances, credits, exemptions

    Valuation of inventory

    • First-in first-out (FIFO)
    • Last-in first-out (LIFO)
    • Average cost
    • Specific identification

    Depreciation rules

    Buildings

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other
    20 Years
    5 %

    Other fixed immovable assets (e.g. machinery)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other
    5 Years
    20 %

    Movable (tangible) assets (e.g. cars, furniture, work equipment)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other
    5 Years
    20 %

    Intangible assets (e.g. patents)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other
    5 Years
    20 %

    Land (if any)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other

    Are there limits to interest deductions (other than thin capital rules)?

    No Yes
    Special anti-abuse rules apply to interest on non-functional loans paid to a related company. Interest paid on these loans is not deductible.
    As of 1 January 2019: Introduction of earningsstrippingrule based on ATAD1. Interest is deductible up to 30% of the EBITDA.
    Also some jurisprudence applies on loans that actually function as equity.

    Is there an Allowance for Corporate Equity?

    No Yes

    Exemptions from taxable income

    No Yes
    • Income from participations (dividends)
    • Patents income (e.g. patent boxes)
    • Other, please describe
    Income derived from a permanent establishment is exempted.

    Expenses that are generally not deductible:

    Dividends, any profit tax including DCIT, interest on loans which function as equity.

    Losses

    Loss carry-forward exists?

    No Yes
    • Indefinite
    6 Years

    Loss carry-backward exists?

    No Yes
    • Indefinite
    1 Years

    Tax credits available?

    No Yes
    • For research and development investments
    • For training
    • Other, please describe:

    Rate(s) Structure

    25 %
    0 %
    0 %
    0 %
    25 %

    Special tax rate for SMEs

    No Yes

    Measures against profit shifting

    Do Thin Capitalization (TC) rules exist?

    No Yes
    • Explicit TC law
    • Part of CIT law
    • Arm’s length
    • Ratio
    :
    Internal
    Internal and external

    TC depends on shareholding?

    No Yes
    Direct
    Indirect

    Automatic remedy

    No Yes
    • Non-deductibility of interest
    • Reclassification as dividend
    All companies
    Foreign companies
    Non-EU companies

    Transfer pricing rules exists?

    No Yes
    No Yes
    • Fee
    • Tax base increase

    Special features

    Is group taxation available?

    No Yes

    Is there a specific anti-avoidance provision in the legislation?

    No Yes

    International aspects

     
    Treaty countries
    Non-treaty countries
    Repatriated profits are taxed according to the following system
    • Exemption system
    • Tax credit
    • Deduction
    • Exemption system
    • Tax credit
    • Deduction
    Interest received is taxed
    No Yes
    No Yes
    Tax rate on interest received
    25 %
    25 %
    Outgoing dividends withholding tax
    15 %
    15 %
    Outgoing royalty payments withholding tax
    0 %
    0 %
    Outgoing interest payments withholding tax
    0 %
    0 %
    Foreign losses (of either subsidiaries or permanent establishments) can be set-off
    No Yes
    No Yes
    If yes :
    Minimum direct or indirect shareholding to qualify loss-offset (if applicable)
    Loss carry-forward exists?
    No Yes
    No Yes
    If yes :
    Time limit
    • Indefinite
    • Indefinite
    Size limit
    Loss carry-backward exists?
    No Yes
    No Yes
    If yes :
    Time limit
    • Indefinite
    • Indefinite
    Size limit
    Controlled foreign company (CFC-) rules exist?
    No Yes
    No Yes
    If yes :
    Time limit:
    • Indefinite
    • Indefinite
    Size limit
    Threshold for capital or voting power held directly or indirectly by resident in non-resident company:
    50 %
    50 %
    CFC-rules apply if foreign tax rate is lower than:
    9 %
    9 %
    CFC-rules apply for passive income only?
    No Yes
    No Yes

    Tax due date

    When has the tax return to be filed

    • 3 months after closing of the tax period
    • 6 months after closing of the tax period
    • Later than 6 months after closing of the tax period
    • Date set by the Authority
    • Other
    • Extensions of the deadline are possible

    Advance tax payments due?

    No Yes
    • Monthly
    • Quarterly
    • Bi-annual
    • Annual
    • Other

    Tax collector

    General comments

    Economic function

    • Consumption
    • Labour Employed (paid by employers and employees)
    • Labour Non-employed
    • Capital income: corporations
    • Capital income: income of households
    • Capital income: income of self-employed
    • Capital stocks

    Environmental taxes

    • Energy
    • Transport
    • Pollution/resources

    Tax revenue

    d51o-c01
    Year Annual tax revenue (in millions) % of GDP % of total tax revenue -
    2017
    21,413
    2.9052 %
    7.497 %
    2016
    21,035
    2.9696 %
    7.7323 %
    2015
    16,108
    2.3345 %
    6.3188 %
    2014
    14,511
    2.1608 %
    5.8343 %
    2013
    12,447
    1.8846 %
    5.223 %
    2012
    11,854
    1.8154 %
    5.1032 %
    2011
    12,409
    1.908 %
    5.3801 %
    2010
    12,782
    1.9997 %
    5.6292 %
    2009
    11,604
    1.8571 %
    5.2858 %
    2008
    18,814
    2.907 %
    8.0916 %
    2007
    18,552
    2.9963 %
    8.43 %
    2006
    17,907
    3.0634 %
    8.5016 %
    2005
    17,069
    3.0985 %
    8.8494 %
    2004
    14,994
    2.8329 %
    8.1481 %
    2003
    13,392
    2.6115 %
    7.502 %
    2002
    15,394
    3.0718 %
    8.769 %
    2001
    17,580
    3.6482 %
    10.2775 %
    2000
    16,736
    3.7026 %
    10.0598 %

    Footnotes