On September 15, 2020, the Dutch Government issued the 2021 Tax Plan, which includes key corporate tax measures.
The previously announced reduction of the high corporation tax rate will be scrapped; the rate will remain 25%.
The reduction of the low corporation tax rate from 16.5% to 15% will go ahead as planned. In addition, more SMEs will pay this lower rate in the years ahead. From 2021, the low rate will apply to profits of up to €245,000 instead of €200,000. In 2022 this limit will be raised further to €395,000.
The scope for companies to offset losses will be reduced as of 2021, generating €555 million on a structural basis. This means that businesses will pay a more constant amount of corporation tax, and that fewer businesses will pay no tax at all in a particular year.
See 2021 Tax Plan