Further reduction of corporate income tax rate
The Dutch government announced that it will reduce the corporate income tax rate more than initially planned. Instead of 30.5%, the rate will be 29.6%.
Currently the tax rate is 31.5%. The additional reduction is intended to compensate companies for increased costs of the new system of health insurance. A further compensation will be provided through a reduction of unemployment insurance premiums.
It is uncertain whether the compensation that is now offered will also mean that the tax rate for the year 2007 will be further reduced. The plan was to reduce the tax rate from 30.5% to 26.9% and to broaden the tax base.
