Dutch Tax Plan 2006
On 20 September 2005 (Day of the Queen's Speech) the Ministry of Finance officially launched the Tax Plan for the year 2006.
For corporate taxpayers the most important changes are:
- corporate income tax rate will go down to 29.6% in 2006, the first 22,689 euro profit will be taxed at a rate of 25.5%
- capital duty will be abolished as from 1 January 2006
- companies that have labour costs in excess of EUR 1m will be confronted with a disallowed amount equal to 0.4% of those labour costs (for other companies the disallowed amount will be 4,000 euro)
- no tax deduction on losses from subsidiaries in first five years after acquisition/ incorporation
- introduction of a sort of fiscal unity for wage tax purposes
- the maximum tax deduction for charitable donations will be increased from 6% to 10% of taxable profit
- the tax incentive for R&D activities will be increased
- the tax advantages for the shipping sector (tonnage tax system) will be extended
- transfer of business to family will be made more easy
- an exemption of real estate transfer tax will be introduced for the transfer of cable networks
In the September newsletter you will find a concise overview of the proposed changes in Dutch tax law for the year 2006.
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