The Dutch tax package for 2017 has been publicly announced on September 20th, 2016. If accepted by Dutch parliament the tax package will amend the following sections of the Dutch Corporate Income Tax Act:
- Corporate income tax rate
- Dutch innovation box
Corporate income tax rate
Currently the first bracket for the corporate income tax is 20% up to a taxable amount of €200.000. The rate above the first bracket is 25%.The first bracket will be extended till €250.000 in 2018, €300.000 in 2020 and €350.000 in 2021.
Dutch innovation box
The Netherlands will amend the innovation box to be in compliance with the OECD BEPS project outcomes on the innovation box regime.
The research and development cost made in the Netherlands will be important to determine which part of the profit will be eligible for the Dutch innovation box. Research and development cost consisting of payments to group companies will not qualify for the Dutch innovation box.
Taxpayers with a consolidated group revenue of more then 50 million per year or a consolidated revenue out of intellectual property of more then 7.5 million per year can only apply for the Dutch innovation box with an S&O decree together with a patent for their intangible asset or a exclusive license to use a patent.