Corporate income Tax

Corporate income tax
Corporate income tax is a difficult matter for many entrepreneurs and private individuals, while there are so many opportunities for the entrepreneur. It goes without saying that you do not file an incorrect tax return, apply prohibited tax constructions or keep a sloppy administration. When you delve into tax matters, or receive expert tax advice on tax regulations and laws, there are important benefits to be gained and you are protected against sanctions, fines, legal proceedings and the like.         

Our reliable expert tax specialists, who all have years of experience, see every opportunity. We turn these opportunities into benefits for our customers and protect them. Often this has immediate results, so that the financial position improves. All our tax specialists have years of experience and the mr. title.

Legal forms that must pay corporate income tax
The Corporate income tax Act of 1969 is the third chapter of the Tax Act. This chapter is devoted to the taxation of legal persons. The legal entities that are taxable are also called subjects.

Everyone in the Netherlands has to pay tax. Natural persons do this in the form of income tax. Non-natural persons also come into contact with the tax authorities. A non-natural person is a legal entity, such as a bv or a nv. Legal entities must also pay tax in the form of corporate income tax.

The following legal forms are subject to corporate tax:

• A private company or BV;
• A public limited company or NV;
• An (open) limited partnership or CV;
• An association or cooperative association;
• Common account funds;
• Legal persons governed by public law in so far as they operate an undertaking;
• A foundation qualified as an entrepreneur.

When a subject pursues a social, social or cultural interest, they may be exempt from paying tax, despite being included in the corporate tax law. Even if taxation would yield so little that it is simpler to exempt it from paying tax.

Corporate income tax (Vpb) rates 2022 and 2023
Corporate income tax is also called Vpb (vennootschapsbelasting)  and is levied on the profit that a company has.  The corporate tax rate in 2022 is 15% on profits up to € 395,000. Above the € 395,000 profit, the corporate tax rate of 25% is levied. In 2023, the limit for the low tax rate of 15% will be reduced from € 395,000 to € 200,000. The high rate was also increased from 25% to 25.8% in 2023. Before 2024, the government will again look at whether the limit for the low rate should be changed. 

Corporate tax exemption?
The Corporate Income Tax Act also states that there are certain institutions/organisations that serve the social interest and are therefore exempt from corporate income tax. The following examples qualify for this exemption:

• Administrators of pension institutions whose purpose is to insure pensions and early retirement schemes of former employees;
• Hospitals, shelters and nursing homes;
• Hospital nursing funds and health insurance policies operating for non-profit purposes;
• Public reading rooms and libraries;
• Social insurance providers;
• Legal entities working in the field of agriculture, insurance against damage on a mutual basis and the provision of funeral services. These organizations must at all times operate without profit for profit; and
• Organizations or institutions that aim to maintain estates that fall under the Nature Conservation Act in the Netherlands.

Calculating the taxable amount
In order to ultimately determine the amount on which tax should be paid, it is necessary to determine what the taxable amount is. For this purpose, it is necessary to determine what the taxable profit, taxable profit and compensable losses are. In addition, one also has to deal with all kinds of deductions, exemptions and capital contributions that must be taken into account. To solve this complex puzzle, it is advisable to call in an experienced tax specialist.

Once the taxable amount has been determined, it is possible to look at the rate that you have to pay. Up to an amount of € 395,000, a rate of 15% applies. Anything above € 395,000 must pay a rate of 25.8%.

Questions from entrepreneurs about corporate income tax
The following questions that we regularly receive from entrepreneurs about corporate tax:

• Is my company subject to corporate income tax?
• How often does my company have to file corporate tax?
• How should I file corporate tax in a corporate tax return?
• When do I have to file the corporate tax return and what happens if this return is late?
• What is a fiscal unit and is it always more advantageous?
• What are the tax consequences of a unit?
• In the case of a fiscal unit, do I also have to fill in the balance sheet and profit and loss account of the parent company and all subsidiaries?

There are many other tax questions and issues our tax specialists than the above regarding corporate tax. You can also submit all these questions to us. We provide clarity and solve your tax issue or question.

Why a tax specialist from AGA Fiscalisten with corporate income tax?
AGA Fiscalisten stands for high-quality expert tax advice. All our tax specialists are senior tax specialists, have years of tax experience, and have graduated from the university in tax law and hold the title "mr.".

A (senior) tax specialist specializes in tax law while a tax advisor has only completed tax courses. A tax advisor has much less knowledge than a tax specialist and often makes mistakes with potentially significant financial consequences. It is wise not to settle for a non-qualified tax advisor, but to engage an expert senior tax specialist. This way you avoid problems, fines or procedures and you do not miss out on tax benefits due to advice that is not sufficiently expert.

High quality tax specialist; Master title mr. and years of experience
All our tax specialists have years of experience and the "mr." title. The most recent developments and changes concern taxation and all relevant legislation is studied and discussed by our tax specialists. This gives us the opportunity to clarify all the problems and issues about taxation. We achieve the best possible result for our customers. Tax advice, tax returns, financial advice, legal advice or discussion partner, AGA Fiscalisten will arrange it for you!

Contact AGA Fiscalisten
The tax specialists of AGA Fiscalisten can do a lot for you, from an answer or advice to your tax questions to guidance throughout the entire process. If you have any questions or issues and would like high-quality tax advice, please contact one of our expert experienced tax specialists for an intake interview free of charge and without obligation.

NEED TAX ADVICE? Call: 040-8489888 1st free and non-binding intake interview. Available by phone: Monday to Friday between 09.00h and 20.00h) We can also be reached by e-mail: info@agafiscalisten.nl or via the contact form on the right side of our website.

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