Corporate Income Tax (Vennootschapsbelasting) in the Netherlands

Key Takeaways

Corporate income tax (VPB) applies to BVs, NVs, and other corporate entities — not to eenmanszaken or VOFs.
2026 rates: 19% on the first €200,000 taxable profit, 25.8% above €200,000.
The taxable base is revenue minus deductible expenses — including DGA salary, depreciation, and pension provisions.
Losses can be carried back 1 year and carried forward indefinitely (subject to a cap).
The participation exemption (deelnemingsvrijstelling) makes dividends between group companies effectively tax-free.

Who Pays Corporate Income Tax?

vennootschapsbelasting

Corporate tax applies to:

BV (Besloten Vennootschap)
NV (Naamloze Vennootschap)
Coöperatie (cooperative)
Stichting and Vereniging — only if they conduct commercial activities exceeding the exemption thresholds
Foreign entities with a permanent establishment in the Netherlands

Sole proprietorships (eenmanszaak) and partnerships (VOF, maatschap) do not pay corporate tax. Their owners pay income tax (inkomstenbelasting) instead.

Tax Rates (2026)

Taxable Profit	Rate
Up to €200,000	19%
Above €200,000	25.8%

Recent Rate History

Year	Low Rate	Threshold	High Rate
2024	19%	€200,000	25.8%
2025	19%	€200,000	25.8%
2026	19%	€200,000	25.8%

The low rate and threshold have been stable since 2023. Always verify the current rates on the Belastingdienst website, as changes are announced in the annual Tax Plan (Belastingplan).

Determining Taxable Profit

Taxable profit is calculated as:

Revenue (all income from business activities) Minus cost of goods sold Minus operating expenses (rent, salaries, marketing, etc.) Minus depreciation of assets Minus DGA salary (deductible as a business expense) Minus pension provisions and other reserves Minus interest on business loans Plus/minus other adjustments (e.g., non-deductible expenses) Equals taxable profit

Key Deductible Expenses

Expense	Deductible?	Notes
DGA salary	Yes	Must meet gebruikelijk loon requirements
Employee salaries	Yes	Including social security employer contributions
Office rent	Yes	Including workspace at home (conditions apply)
Business travel	Yes	Including car costs (conditions for private use)
Professional services	Yes	Accountant, lawyer, consultant fees
Marketing and advertising	Yes	Fully deductible
Depreciation	Yes	Based on useful economic life of assets
Interest on business loans	Yes	Subject to thin capitalization and EBITDA rules
Business insurance	Yes	Including D&O insurance
Pension contributions	Yes	For DGA and employees
Charitable donations	Partially	Up to 50% of profit, max €100,000

Non-Deductible Expenses

Expense	Why Not Deductible
Fines and penalties	Public policy — cannot incentivize violations
Bribes	Illegal payments are never deductible
Corporate tax itself	VPB is not deductible from VPB
Excessive entertainment	20% of entertainment and hospitality costs are non-deductible
Certain car costs	Private use of company car triggers a bijtelling (addition)

Depreciation

Assets must be depreciated over their useful economic life. Common depreciation periods:

Asset	Typical Depreciation Period
Office furniture	5–10 years
Computers and electronics	3–5 years
Software	3–5 years
Vehicles	5 years
Buildings	30–50 years
Goodwill	10 years

Minimum book value for buildings: You cannot depreciate a building below its WOZ value (tax assessment value) if owned by the BV, or 100% of WOZ value for own-use buildings and 100% for investment properties.

Loss Relief (Verliesverrekening)

If your BV makes a loss, you can offset it against profits in other years:

Carry-Back

You can carry a loss back 1 year — offsetting it against the previous year's profit and receiving a refund.

Carry-Forward

You can carry a loss forward indefinitely. However, from 2022 onward, there is a cap:

Losses up to €1,000,000 can be fully offset against future profits
Losses above €1,000,000 can only offset 50% of the profit exceeding €1,000,000

Example: Your BV has a carry-forward loss of €3,000,000. In the next profitable year, you earn €2,000,000 profit:

First €1,000,000: fully offset → €1,000,000 taxable
Remaining €1,000,000 profit: 50% offset (€500,000) → €500,000 taxable
Total offset used: €1,500,000
Remaining carry-forward loss: €1,500,000
Taxable profit: €500,000

Participation Exemption (Deelnemingsvrijstelling)

deelnemingsvrijstelling

If your BV holds at least 5% of the shares in another company, dividends and capital gains from that subsidiary are exempt from corporate tax.

This is why the holding structure is so tax-efficient:

Operating BV earns profit → pays 19%/25.8% VPB
Operating BV pays dividend to Holding BV → tax-free (participation exemption)
Holding BV can reinvest or hold the money without additional tax
Only when the DGA takes money out of the Holding BV (as salary or dividend) does personal tax apply

Interest Deduction Limitations

The Netherlands has rules to prevent excessive interest deduction (earnings stripping):

EBITDA Rule (Earningsstrippingmaatregel)

Net interest expenses are only deductible up to the higher of:

€1,000,000, or
20% of EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization)

This mainly affects larger companies with significant intercompany or acquisition debt. Most small BVs are not impacted due to the €1,000,000 threshold.

Filing and Payment

Corporate Tax Return

Deadline: 5 months after the end of the fiscal year (June 1 for calendar-year companies)
Extension: Can be extended, typically to November 1 or later through a tax advisor
Filing method: Electronic via the Belastingdienst portal or through your accountant's software

Provisional Assessment

The Belastingdienst issues provisional assessments (voorlopige aanslag) during the year based on expected profit. You pay corporate tax in monthly installments during the year.

If your actual profit differs significantly from the estimate, request an adjustment to avoid a large settlement at year-end.

Final Assessment

After filing the return, the Belastingdienst issues a final assessment (definitieve aanslag). Any difference between provisional payments and the actual tax due results in a refund or additional payment.

Common Mistakes

Not requesting a provisional assessment adjustment — If your profit is lower than expected, you are overpaying. If higher, you may face a large bill plus interest.
Forgetting the 20% entertainment non-deduction — Business dinners and hospitality events are only 80% deductible. This catches many first-time BV owners.
Not using loss carry-back — If your BV was profitable last year and makes a loss this year, carry the loss back for an immediate refund.
Ignoring the participation exemption — If you have a holding structure, ensure your dividends between companies are properly structured to qualify.
Late filing — The Belastingdienst imposes fines for late corporate tax returns. File on time or arrange an extension through your accountant.