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Corporate income tax: limitation on offsetting losses against profits

This information is provided by

Netherlands Enterprise Agency, RVO

Effective date: 1 January 2021

What changes?

Are you an entrepreneur and do you make a profit of more than €1 million? There will be a change in the way you can offset profits and losses against each other for corporate income tax (VPB) purposes.

As of 2021, you are only allowed to offset 50% of your profits over €1 million with losses from previous years (carry forward). At the moment, you can carry forward any losses up to 6 years. The time limit of 6 years will no longer apply. From 2021, you can carry forward losses indefinitely.

For whom?

  • Entrepreneurs making profits of over € 1 million

When?

The change in law is expected to come into force on 1 January 2021.

Please note: The effective date of this measure is not yet final. Entry into force is subject to its passing through the upper and lower houses of parliament or proclamation of the Order in Council (Algemene Maatregel van Bestuur, AMvB) or ministerial decree and publication in the Staatsblad or the External linkStaatscourantExternal link(in Dutch).

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Questions relating to this article?

Please contact the Netherlands Enterprise Agency, RVO

This information is provided by

Netherlands Enterprise Agency, RVO