Corporate tax: tax on the profits of B.V., N.V. and sometimes foundation

Corporate tax is a tax on profits. We call it VPB, Vennootsschapsbelasting.

What is corporate tax (or VPB in Dutch)?

Legal forms such as B.V.s, N.V.s and sometimes foundations must file corporate tax returns. Natural persons (such as sole proprietorships) pay tax on profits via income tax and therefore no corporate tax. The rates (%) change every year and can be read on the Tax Authorities' website.

> How much corporate tax do I pay?

What do you pay corporate income tax on?

Corporate tax is a tax on profits in a financial year. This financial year is usually the same as the calendar year, so from January 1 to December 31. A financial year is generally a period of 12 months.

The 1st financial year of a newly established company can be longer or shorter. You calculate the taxable profit by applying tax rules to your commercial profit and loss account and balance sheet.

Of course we will do that for you if you are a customer of The Bookie.

Association

A foundation or association may have to deal with corporate tax. But only if there is a profit motive (often this is not the case). In that case, the foundation or association is liable for corporate tax.

To this end, we look at whether your foundation or association runs a business. You can request an assessment from the Tax Authorities as to whether your foundation must also file payroll tax returns, corporate tax returns or both.

Check to see if this applies

Precisely because it is unclear for many foundations, the Tax Authorities have developed a tool that you can go through to see whether you have to pay corporate tax.

> Do the check