Tax annual accounts
Tax annual accounts present assets and result according to rules for tax assessment. They can differ from the commercial annual accounts.
What do tax annual accounts mean?
Tax annual accounts present assets and result according to rules for tax assessment. They can differ from the commercial annual accounts.
Differences arise, for example, from tax depreciation, reserves or non-deductible costs. For a BV's publication obligation, commercial reporting under Title 9 is decisive.
How does it work?
Taxable profit is determined according to sound business practice (art. 3.25 Income Tax Act 2001, for the BV via art. 8(1) Corporate Income Tax Act 1969). On top of that apply limits that annual accounts law does not know: on goodwill at most 10% of the acquisition cost may be depreciated per year and on other business assets at most 20% (art. 3.30(2) Income Tax Act 2001); on a building only as long as the book value exceeds the WOZ value (art. 3.30a Income Tax Act 2001).
Micro and small entities may prepare their annual accounts under Title 9 on these tax-based policies, provided they apply them all and state this in the notes (art. 2:396(6) DCC and art. 2:395a(7) DCC). Medium-sized and large entities measure commercially and process the differences as deferred tax.
Example
A software company (BV) buys servers for € 30.000 on 1 January 2025. Commercially it depreciates over three years: € 10.000 per year. For tax, at most 20% per year is allowed: € 6.000. At the end of 2026 the commercial carrying amount is € 10.000 and the tax one € 18.000. Taxable profit is € 4.000 higher than commercial profit in both years. The difference of € 8.000 reverses by itself, because for tax purposes depreciation continues up to and including 2029. At 19% that is a deferred tax asset of € 1.520.
In the annual accounts
With the tax return; not the same publication documents as the commercial annual accounts.
Difference from the commercial annual accounts
The commercial annual accounts are for shareholders, the bank and the Business Register; only those are adopted and filed. The tax accounts are for the inspector. Temporary differences, such as a different depreciation pace, disappear by themselves; permanent ones, such as a non-deductible fine, never do. More: tax or commercial.
Common mistakes
- Filing a tax balance sheet without adjustment
- Treating every difference as permanent
What to watch for
- Record a reconciliation per balance sheet item between commercial and tax carrying amount; that schedule feeds the return and the calculation of the deferred items.
- Micro or small and chosen tax-based policies? Choosing per item is not allowed, and the layout of the balance sheet and notes remains that of Title 9.
- The deadlines almost coincide: return before 1 June after a calendar financial year, preparation of the annual accounts within five months (art. 2:210(1) DCC).
Legal basis and source
Corporate Income Tax Act 1969; Title 9 Book 2 DCC
Frequently asked questions
May I file the tax figures with the KVK?
Only if the BV is micro or small, applies all tax-based accounting policies and states this in the notes. Medium-sized and large entities always file figures on commercial policies.
Why is my taxable profit higher than my commercial profit?
Usually because of slower tax depreciation, non-deductible costs or a provision that is not allowed for tax purposes. The first and third differences reverse later; non-deductible costs do not.
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Preparing Dutch annual accounts?
Your first set of annual accounts is free, for every size class. Create an account and prepare the annual accounts of your Dutch company under Title 9 of Book 2 of the Dutch Civil Code.
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