Corporate income tax (vennootschapsbelasting)

What does vennootschapsbelasting (corporate income tax) mean?

Corporate income tax is tax on the taxable profit of, among others, BVs and NVs. The taxable profit can differ from the commercial profit.

The commercial P&L shows tax on the result, while the return is calculated under tax rules. Advance payments and deferred taxes require separate treatment.

How does it work?

Corporate income tax is levied on the taxable amount: the taxable profit of the financial year minus deductible losses. From 2023 up to and including 2026 the rate is 19% on the first € 200,000 and 25.8% on the excess (Dutch Tax Administration). The return must be filed within five months after the financial year, for a calendar year before 1 June; an extension is possible.

In the annual accounts, tax appears in three places. In the profit and loss account as a charge on the result (art. 2:377(1) DCC). On the balance sheet as a liability or receivable: the calculated tax minus the provisional assessments paid (art. 2:375(1) DCC, point (h)). And as a deferral, when commercial and tax valuation differ temporarily: the provision for tax liabilities is recognised separately (art. 2:374(4) DCC).

Example

For 2026 a BV has a commercial result before tax of € 240,000. That includes € 10,000 of costs that are not tax deductible; the taxable amount is € 250,000. Tax: 19% × 200,000 = € 38,000 plus 25.8% × 50,000 = € 12,900, together € 50,900. The BV paid a provisional assessment of € 42,000 in 2026. At 31 December it books € 50,900 tax charge and a liability of 50,900 − 42,000 = € 8,900 remains on the balance sheet. Result after tax: 240,000 − 50,900 = € 189,100.

In the annual accounts

P&L tax charge and balance sheet liability or receivable; size class determines the detail.

Difference from income tax

Corporate income tax is paid by the legal entity on its profit; income tax is paid by a natural person. The owner of a sole proprietorship pays income tax on the profit and has entrepreneur schemes such as the self-employed deduction, which do not apply within corporate income tax. The DGA of a BV deals with both: the BV pays corporate income tax, he himself pays income tax on salary and dividend.

Common mistakes

• Taking commercial profit directly as the tax base
• Confusing VAT with corporate income tax

What to watch for

• Check the provisional assessment as soon as the profit deviates; it can be changed as long as the return has not been filed.
• Reconcile the tax item: calculated tax for the year, minus provisional assessments paid, plus what is outstanding for old years. See provisional assessment in the annual accounts.
• Micro and small entities may prepare the annual accounts on tax bases (art. 2:395a(7) and 2:396(6) DCC); valuation differences and deferred taxes then lapse. Medium-sized and large entities do not have that choice.

Legal basis and sources

Corporate Income Tax Act 1969 (Wet op de vennootschapsbelasting 1969)

• Belastingdienst: corporate income tax
• Belastingdienst: corporate income tax rates
• Belastingdienst: filing a corporate income tax return
• Belastingdienst: provisional corporate income tax assessment
• Belastingdienst: taxable amount and financial year

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