Commission Recommends Cut In Dutch Corporate Tax

by Ulrika Lomas, Tax-news.com, Brussels

12 June 2001

A government commission formed by the Dutch finance ministry to investigate Dutch corporate tax laws in an international context has recommended a cut in the corporate tax rate, it was revealed recently. The commission, headed by the former state secretary for economic affairs, Yvonne van Rooy, suggested that a reduction from 35% to 30% could improve Dutch competitiveness on an international level.

The study, which was presented to the government on Monday, found that such a rate cut would primarily benefit the services sector in Holland, as industrial companies rarely pay the top rate. Banks, insurers and other business service providers currently pay around 80% of the corporate taxes collected each year, and the commission found that this proposal, if adopted, could save them as much as 2.5 billion nfl per year. In conjunction with various other proposals made by the commission, this could rise to 3.6 billion nfl.

In order to bring some tax relief to the industrial sector, the commission also recommended maintaining an exemption on energy taxes for large consumers.

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