Corporate Tax Rate in the Netherlands (2025): 19% & 25.8% Explained
Updated on 17 June 2025
The Netherlands and its taxation system offer many special benefits to international investors. Corporate taxation in the country varies depending on the taxable profit of businesses: there are two rates determined by the amount of income. Our local lawyers are available to assist you in opening a company and fulfilling the requirements for your full corporate tax compliance in the Netherlands.
What is the corporate tax rate in the Netherlands?
The standard corporate income tax (CIT) rate in the Netherlands is 25.8%. A lower rate of 19% applies to taxable profits up to €200,000. Profits above this threshold are taxed at the higher 25.8% rate. These rates apply to both resident and non-resident companies doing business in the Netherlands.
Corporate taxation in the Netherlands
Both Dutch resident companies, such as BV’s, and foreign companies with a permanent establishment (fixed place of business) in the Netherlands are subject to Dutch corporate income tax. Resident companies are taxed on their worldwide income, while non-resident companies are only taxed on income sourced within the Netherlands. The Netherlands has an extensive network of tax treaties designed to prevent double taxation and allocate taxing rights between countries. Foreign companies may benefit from tax treaties that reduce withholding taxes or provide exemptions, potentially lowering their effective corporate tax burden in the Netherlands.
Profit Tax Rates in the Netherlands
In the Netherlands, the corporate income tax (CIT) has two brackets:
19% on taxable profits up to €200,000
25.8% on profits above €200,000
The corporate income tax rates apply to businesses liable for corporate tax (vennootschapsbelasting). Corporate tax is levied on the taxable profit, which is calculated by deducting all allowable business expenses, including operational costs and depreciation, from total revenue.
Corporate tax is charged for any profits generated from business activities in the Netherlands, including income from trading, international operations, passive and source incomes, etc. In principle, all costs connected to the activity of the company are deducted from the total profit.
The Dutch Tax office or ''Belastingdienst'' in Dutch, is the agency in charge of internal revenue and taxation.
Exemptions of corporate tax Netherlands
Certain items of the income are exempt from corporate taxes. These are dividends and capital gains obtained from particular subsidiaries and profits generated by foreign businesses. This is regulated in the subsidiary-parent directive.
Local subsidiaries are eligible for exemption from Dutch corporate tax if they are active and the Dutch parent company holds at least 5% interest. These subsidiaries must undergo a test showing whether they qualify for exemptions. The parent company will be eligible for participation exemption in case they are already charged with reasonable taxes in the country where the subsidiary is located. Similarly, a subsidiary would qualify for participation exemption in case its passive assets do not exceed 50 % of the total assets.
Our lawyers in the Netherlands can provide you with further details about corporate tax exemptions and their application with respect to your Netherlands company.
Other characteristics of corporate taxation
The tax system in the Netherlands offers different reliefs and benefits. Certain budget allocations, for instance, apply for development and research activities. Such allowances reduce the company’s taxable income. Similarly, companies working in the field of export and import can take advantage of a special tax regime with respect to tonnage available for companies dealing with shipping.
FAQ's
What is the corporate income tax rate in the Netherlands?
In 2025, the Netherlands applies a two-tier corporate income tax rate: 19% on profits up to €200,000 and 25.8% on profits exceeding that amount.
What are the Dutch corporate tax brackets?
The Dutch corporate income tax brackets for 2025 are: 19% for profits up to €200,000 and 25.8% for profits above €200,000.
Does the Netherlands have a flat or progressive CIT?
The Netherlands employs a progressive corporate income tax system with two distinct tax brackets: 19% for the first €200,000 of taxable profit and 25.8% for any amount above that.
Do foreign companies pay corporate tax in the Netherlands?
Yes, foreign companies are subject to Dutch corporate income tax on income derived from Dutch sources, such as profits from a permanent establishment or income from Dutch real estate.
