Reduction in tax rates in 2019

We will see a significant change in tax rates in the coming year. The change will affect both personal and corporate income tax rates. When the new Budget for 2019 was presented in September, the Dutch government announced its tax plans for 2019. These plans have now been submitted to the Senate. We have set out the principal changes in tax rates for you below.

Personal income tax

From 2019 onwards, personal income tax rates will gradually be concentrated into two brackets. This will result in the following tax rates for the coming years:

Salary split

We urge you to contact your adviser to ask about the options for a salary split for any of your employees who work in the Netherlands and in another country.

Corporate income tax

Corporate income tax rates are also set to change. They will be lowered on a structural basis over the coming years. The corporate income tax rates will be as follows in the years to come:

The lowering of the corporate income tax rate may motivate you to transfer more of your business operations to the Netherlands or to create a permanent establishment in the Netherlands. Please do not hesitate to contact your adviser to discuss your options or send an email to international@acconavm.nl. We would be happy to be of assistance.