The Dutch Ministry of Finance has issued an overview of the main tax changes for 2021, which were approved by the Senate on 15 December 2020. The main tax changes are as following:
- The lower corporate income tax (CIT) rate is reduced from 16.5% to 15.0%, with an increase in the lower rate threshold from EUR 200,000 to EUR 245,000 in 2021 and a further increase to EUR 395,000 scheduled in 2022. The higher CIT rate remains 25%.
- The Innovation Box tax rate for profit from innovative activities is increased from 7% to 9%.
- A new job-related investment tax credit (BIK) is introduced.
- The lower income tax bracket rate for Box 1 income is reduced from 37.35% to 37.10% in 2021.
- The tax-free allowance for Box 3 income for individuals is increased to EUR 50,000 and the overall tax rate increased from 30% to 31%.
- The conditional withholding tax on interest and royalties is introduced from 1 January 2021 at the higher corporate income tax rate of 25% and applies on payments to related parties in specified jurisdictions with a corporate tax rate of less than 9% and jurisdictions listed by the EU as non-cooperative.
- The DAC6 mandatory disclosure requirements, which were approved earlier and postponed by 6 months, come into force on 1 January 2021.
