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Consequences of corporation tax rate adjustment



An entrepreneur in financial difficulties may appeal to the municipality for general assistance for sufficient means of support. The municipality provides this as an interest-free loan, which is not part of the entrepreneur’s tax income at that point in time. After a year, on the basis of the entrepreneur’s annual income, the municipality decides whether the loan must be repaid in whole or in part. If repayment was not effected, then the amount was added to the entrepreneur’s income. This has led to a higher qualifying income for a number of income-dependent allowances, resulting in recovery issues. With effect from 1 J

Due to the tax rate changes in the Corporation Tax Act and Income Tax Act, tax rates in the tax-neutral return regulation will be adjusted.

If, in retrospect, an intangible asset does not comply with rules applicable to the innovation box, then the manner in which corporation tax is calculated also changes due to the proposed reduction of corporation tax.

Box 2 tax rate increase

Along with the reduction of corporation tax rates, it is proposed to adjust the current tax rate of 25% for income from substantial shareholding (i.e. shareholding of 5% or more) to 26.9% in 2021. To satisfy small and medium-sized enterprises, the original adjustment of 28.5% in the coalition agreement has therefore been reduced. The tax rate structure in Box 2 is as follows:

Tax rate

2019     -> 25.0%

2020     -> 26.25%

2021     -> 26.9%

Please note!

Please note!

There will be no transitional arrangements for profits attained before 2020, but will only be paid out to the director/major shareholder in 2020 or in later years.