Tax liability of foundation and association<\/a>.
\nLimited partnerships and mutual funds are liable for corporation tax if they are private entities.<\/p>\nRate<\/h4>\n
The calculation of the corporation tax due includes what is known as a tiered pricing<\/strong>. On the first \u20ac200,000 of the taxable amount, 20%<\/strong> corporation tax is payable. On profits in excess of \u20ac200,000, 25%<\/strong> are paid to the tax authorities. By spreading profits across several private limited companies, it may be possible to take advantage of the progressive tax rate several times.<\/p>\nThe tax bracket will be extended (unless this legislative amendment, which has already been adopted, is subsequently repealed by Rutte III). With effect from 2018, the rate of 20% will apply to taxable amounts up to \u20ac250,000. From 2020, this will apply up to \u20ac300,000, and from 2021, up to \u20ac350,000. The rate for the taxable amount above the tax bracket threshold remains 25%.<\/p>\n
Addendum following the Rutte III Government\u2019s Coalition Agreement<\/em><\/strong>
\nThe increase in the tax bracket threshold from \u20ac200,000 to \u20ac350,000 will not go ahead. However, tax rates will be reduced. The top rate will be reduced from 25% to 21% and the lower rate from 20% to 16%. This reduction will be implemented in three-year stages. These measures will be financed by broadening the tax base on which corporation tax is calculated:<\/em><\/p>\n\n- the minimum value of owner-occupied property is increased from 50% to 100% of the WOZ value<\/em><\/li>\n
- the period for carrying forward tax losses is being reduced from 9 to 6 years;<\/em><\/li>\n
- A limit will be introduced on the deduction of interest (above \u20ac1,000,000).<\/em><\/li>\n<\/ul>\n
If a self-generated intangible asset is classified under the Innovation Box<\/strong>, the benefits are taxed at a rate of just 5%<\/strong>.<\/p>\nAddendum following the Rutte III Government\u2019s Coalition Agreement<\/strong><\/em>
\nThe effective rate for the innovation box will be increased to 7%.<\/em><\/p>\nCorporation tax is also levied at a rate of 0%<\/strong>. That rate applies only to bodies that comply with the specific regime of the fiscal investment vehicle<\/strong> (FBI). An FBI is obliged to distribute its profits to its shareholders within nine months of the end of its financial year (pass-through obligation), and this dividend is subject to tax for the shareholders.<\/p>\nExemptions<\/h4>\n
Naturally, corporation tax also provides for exemptions for entities specifically designated in the law. In the case of entities that are not exempt from corporation tax, parts of their profits may be exempt. The most important of these exemptions is the participation exemption. Under the participation exemption, income from private limited companies (BVs) or public limited companies (NVs) in which a 5% or greater stake is held is exempt from corporation tax.<\/p>\n
Other items of profit that are exempt subject to certain conditions include capital gains on agricultural land and gains arising from debt forgiveness. As regards the agricultural exemption, there have been persistent rumours for some time that it is set to be abolished. Farmers would therefore be well advised to check (or have someone check) whether any measures need to be taken in this regard.<\/p>\n
Distributing profits<\/h4>\n
Any profit remaining after payment of corporation tax may be retained within the BV or NV. When this net profit is distributed to the shareholders, dividend tax (15%) must be withheld. The shareholder may offset this dividend tax against the income tax due on the dividend.<\/p>\n
Addendum following the Rutte III Government\u2019s Coalition Agreement
\n<\/em><\/strong>The Government intends to abolish dividend tax.<\/em><\/p>\nThe shareholder pays annual income tax on the value of the shares under Box 3 (income from savings and investments). Only where the shareholder holds a substantial interest in the private limited company (BV) or public limited company (NV) paying the dividend is substantial interest tax (25%) payable on dividends and capital gains. If the shares form part of the business assets, the benefits are taxed as income from work and home (box 1).<\/p>\n
Addendum following the Rutte III Government\u2019s Coalition Agreement
\n<\/em><\/strong>The rate of the substantial interest tax will be increased, with effect from 2021, to 28.5% (in 2020, the rate is 27.3%).<\/em><\/p>\nTax returns and tax interest<\/h4>\n
An annual corporation tax return must be filed. The tax must be paid on the basis of a (provisional) assessment issued following that return.<\/p>\n
The corporation tax due is increased by tax interest. The Tax and Customs Administration applies a rate of no less than 8% for this. The Tax and Customs Administration only starts calculating interest from 1 July following the end of the tax year. For the 2016 tax year, if the financial year ended on 31 December 2016, from 1 July 2017<\/strong> Tax interest is charged. The period over which the Tax and Customs Administration calculates the interest runs until the final payment date specified in the tax assessment.<\/p>\nYou can avoid or minimise this high rate of tax by applying for a provisional assessment that approximates the corporation tax and\/or income tax due as closely as possible. You will, of course, then have to pay the tax.<\/p>\n
Would you like to find out more about corporation tax?<\/h4>\n
Is your private limited company (BV), public limited company (NV), foundation or association liable for corporation tax? Is the profit calculated correctly? Are you not entitled to an exemption? How high must the provisional assessment be to avoid paying 8% tax interest?<\/p>\n
Let the advisers to VWGNijhof<\/a> help you determine the best approach in relation to (corporate) tax.<\/p>\n <\/p>","protected":false},"excerpt":{"rendered":"
In het Regeerakkoord van het Kabinet Rutte III bevat maatregelen, die een aantal in dit artikel hebben geschreven onderwerpen, ingrijpend wijzigen. Wij beschrijven deze wijzigingen hierna in een aantal cursief weergegeven passages. Dat vennootschapsbelasting is verschuldigd over de winst van BV’s en NV’s is wel bekend. Ook stichtingen, verenigingen en co\u00f6peraties kunnen onderworpen zijn aan […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-514","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/514","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=514"}],"version-history":[{"count":0,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/514\/revisions"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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