TAX ENVIRONMENT
Corporation tax
rate
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The corporation tax rate in the Netherlands depends on the taxable amount.
The taxable amount is the taxable profit less deductible losses.
The tax rate is 20% if the taxable amount is less than €200,000.
The tax rate is 25% if the taxable amount is equal to €200,000 or higher. (government)
Fiscal unity
A parent company can form a tax group, a so-called fiscal unity, with one
or more of its subsidiaries, which allows the group to deduct a loss incurred
by one company from the profits generated by another.
The establishment of a tax group is only possible under certain conditions. The
main condition is that the parent company holds at least 95% of the shares in
the subsidiary.
Aside from this, all potential group members must have the same financial
year, apply the same accounting policies and be established in the Netherlands.
(idem)
Asset Investment Tax Relief
Investments in certain types of assets can qualify for
a special deduction in calculating taxable profits. This relief is in addition
to the usual depreciation and is computed as a percentage of the qualifying expenditure.
The available deductions fall into the three
categories below:
Small-scale investment deduction
This deduction applies to investments in business
assets of 2,300€ up to
11,242€ per
calendar year. The deduction amounts to 28% for investments from 2,300€ up to 56,024€. The maximum possible deduction is 15,687€ for investments of 56,024€ up to 103,748€. The relief gradually decreases to zero when
the investment reaches 311,242€
Energy investment allowance (EIA)
This deduction applies to investments in qualifying
new energy-saving assets. The maximum investment qualifying for relief is 120
million Euros. The relief amounts to 58% of the investment if it exceeds 2,500€ per calendar year.
Environmental investment allowance (MIA)
This deduction applies to investments in qualifying
new assets contributing to environment protection. The relief provided is 36%,
27%, or 13.5%, depending on the type of asset and whether the investment
exceeds 2,500€ per
calendar year.
