Adjustment of corporation tax rate

The highest corporation tax rate is 25.8 per cent. In 2022, a rate of 15 per cent applies for profits up to €395,000. From 1 January, the amount of the first bracket will be lowered to €200,000. At the same time, the 15 per cent rate will go up considerably, to 19 per cent. This will in many cases add many thousands of euros to the tax bills of private companies (besloten vennootschap). Perhaps sole proprietorship (eenmanszaak) or general partnership (vennootschap onder firma) might be more cost efficient?

Corporate tax rates and brackets have changed a lot in recent years. What is the smart thing to do right now? The big rate differences of the past prompted the splitting up of private companies and breaking up of tax groups. As the differences are becoming significantly smaller, reconsidering these decisions is advisable. Perhaps re-establishing a tax unit or merging private companies from 1 January 2023 will be the best way forward. Ask your International adviser what would be the best course of action in your situation.

The settlement of corporation tax between private companies within a tax group deserves attention. It may be smart to lay down in writing if and how corporation tax may be settled, for example in the situation where one company makes a profit while another company suffers a loss. Putting these situations down in writing helps clearly define the legal position of the two companies, preventing discussion later on.

Simplified overview of corporation tax rates 2022 and 2023

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Do you have any questions? Or would you like to consult an international adviser? We are happy to help. Just send an email to international@acconavm.nl and we will get back to you.