Decreased taxes for Dutch BV

Taxes Dutch BV

Lower corporate taxes

Dutch BV’s will benefit decreased taxes. This is what the new Dutch government agreed on while forming a new administration. Dutch BV’s will pay billions less tax in the coming years. The 25 percent corporate tax rate percent will be decreased to 21% The low rate for the first 200,000 euros of profit also decreases: from 20 to 16 percent.

 

Downside

The downside of these decreased rates will be that the 30% ruling for expats will be shortened to 5 years instead of 8 years. According to the new administration this is necessary to finance this benefit for Dutch companies. Opposition parties in The Netherlands have already made several complaints. One of the most heard complaint states that the new rules take better care of companies than individuals.

Tax system adjustments

Besides the above mentioned adjustments in the Dutch tax system there are more changes. For example the complicated bracket system for income taxes will be simplified. The current systems has 4 brackets starting from 36,55% in the first bracket to 52% in the last and highest bracket for income which exceeds € 66.422,- a year. The new system will only have 2 brackets, 37% and 49,5%. More information about the current system can be found here. Another major change in the plans is increasing the low VAT rate from 6% to 9%. This change makes groceries like food and drinks more expensive.

2020

Because the formation of the new administration took more than 209 days (a new record in The Netherlands) it is expected that the new tax rules will be introduced in 2020.

 

Do you want to learn what the effect would be in your situation? Contact us! 

2017-10-11T19:41:06+00:00