Private or public limited companies (bv or nv) in the Netherlands have to file a corporate or corporation income tax return (vpb, vennootschapsbelasting in Dutch) every year. You file your tax declaration after closing your company’s fiscal year. Some foundations and associations also have to file corporate income tax returns. The Dutch Tax Administration uses the return to determine your tax assessment: will you have to pay tax, or get a tax refund?
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Corona: Tax Administration allows early loss deduction for corporate tax 2020
Normally, filing the corporate tax return 2020 would be a business’ first opportunity to deduct its 2020 losses from its 2019 profits, providing it had already received the final assessment for 2019. To help businesses build a corona reserve, the Tax Administration will allow businesses to deduct losses from their 2019 profits sooner. The corona reserve cannot be higher than the 2019 profits.
Dutch branch or subsidiaryIf your company is foreign-based, with a branch or subsidiary in the Netherlands, you will be liable for corporate income tax on the income received by the Dutch subsidiary. However, it is possible for parent-daughter companies to establish a so-called fiscal unity, which enables them to level out negative results from one constituent of the fiscal unity with the positive results from another (or others).
Check your provisional assessmentAt the start of the fiscal year you receive a provisional assessment from the Dutch Tax and Customs Administration. The amount of this assessment is calculated based on data provided in previous years. Check the provisional assessment. Do you expect a fall or rise in taxable profit, different from what is stated in the assessment? You can request an adaptation of your provisional assessment (wijziging van uw voorlopige aanslag, in Dutch). You can also request an adaptation if you disagree with the assessment. You cannot file an objection to the provisional assessment, only to the final assessment.
File your corporation income tax return
You have to file your return even if you haven’t received a provisional assessment. If you don’t file your return in time, the Tax and Customs Administration may impose an administrative fine.
You can file your tax return in one of three ways:
- By submitting it online through the Tax and Customs Administration website (Inloggen voor Ondernemers, in Dutch). You will receive the required logon data once you have registered with the Netherlands Chamber of Commerce, if your business is established in the Netherlands.
- Using software applications from commercial companies. For this option Standard Business Reporting (SBR) is the only way.
- By outsourcing your corporation tax return work to an intermediary, such as a payroll manager, an accountant or a tax consultant.
Apply for a filing extensionYou can apply for a filing extension (a delay) in two ways:
- Online, using the ‘Uitstel vennootschapsbelasting’ (Filing extension corporate income tax) form (Dutch only). The form can be found on the Tax Administration secure entrepreneurs’ site;
- Using the pdf form: Aanvraag uitstel aangifte vennootschapsbelasting (Filing extension corporate income tax return, Dutch only). After filling out the pdf on your computer, you’ll have to print it, sign it and post it to the Tax Office.
Object to the final assessment
If you disagree with a final assessment or an additional assessment, you can file an objection (Dutch only).
Tip: make use of the services of a Dutch consultantA consultant who is proficient in Dutch can be a big help when dealing with your corporation tax return. A consultant can help you draw up and file your return, once you authorise them.
Check the corporate tax rates for the NetherlandsCheck the rates for corporate tax for 2020 and the years before (in Dutch).
Use tax schemesMake use of tax reduction schemes. They allow you to deduct a sum from your taxable profit. That way, you pay less taxes. Examples of tax deduction schemes are the KIA, EIA and MIA.
Changes in corporate tax in 2020
The Corporate Tax Act has changed per 1 January 2020:
It is no longer possible to deduct administrative penalties from your income tax or corporate income tax. As an employer, you are no longer allowed to deduct compensations you give your employees for administrative penalties.
No tax rate reduction in 2020
Measures as of 2021
- If you make a profit with innovative activities, the profit is exempt from corporate income tax. As of 1 January 2021, the innovation box tariff will increase from 7% to 9%.
- Losses as result of the liquidation of a subsidiary company or the discontinuation of business activities abroad may now still be deducted from profits. However, from 2021, this measure will be adjusted to restrict businesses in deducting losses from their profit.
- In special cases, your corporate income tax can be reduced if you pay all at once. From 2021 onwards, this tax reduction will be abolished.
These measures are subject to acceptance by the upper and lower houses of parliament.