Corporate income tax rates

24 September 2020
Article

The corporate income tax rate will not, as planned before, be further reduced in 2021, partly as a result of the corona crisis. The first tax bracket, however, will be extended

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Written by:
Vincent Wanningen Senior tax advisor
Corporate income tax rates

First tax bracket extension

The first tax bracket will be increased from € 200,000 to € 245,000, as a result of which less entities will be subject to the highest tax rate. The corporate income tax rate over the first bracket (up to and including a taxable amount of € 245,000) will decrease to 15%, which is advantageous for smaller entities. The second bracket (as of a taxable amount of € 245,001) will remain 25% in 2021. In addition, the government proposes to extend the first tax bracket to € 395,000 in 2022.

Corporate income tax rates in 2020 and 2021

Taxable amount as of:

Taxable amount up to and including

2020 percentage

€ 0

€ 200,000

16.50%

€ 200,001

-

25%

 

Taxable amount as of:

Taxable amount up to and including

2021 percentage

€ 0

€ 245,000

15%

€ 245,001

-

25%

 

Innovation box rate

The effective tax rate for the innovation box applicable to qualifying revenue from innovative activities will be increased from 7% to 9% in 2021.

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