# What is VPB (Vennootschapsbelasting)?

Country: Netherlands

Vennootschapsbelasting (VPB) is Dutch corporate income tax. The rate is 19% on the first EUR 200,000 of taxable profit and 25.8% above that threshold. BVs, NVs, and most other Dutch legal entities are subject to VPB. The annual return (aangifte vpb) is filed with the Belastingdienst within 5 months of the financial year-end.

## Current rate (Calendar year (1 January to 31 December) in most cases)

19% on first EUR 200,000; 25.8% above EUR 200,000 (2025/2026)

## Example

A BV with EUR 300,000 taxable profit pays: 19% x EUR 200,000 = EUR 38,000 plus 25.8% x EUR 100,000 = EUR 25,800. Total VPB: EUR 63,800.

## How VPB (Vennootschapsbelasting) works in Netherlands

Vennootschapsbelasting (VPB) is the cornerstone of Dutch business taxation. It applies to the worldwide profits of Dutch-resident companies and the Dutch-source profits of non-resident entities with a permanent establishment in the Netherlands.

**Two-rate structure**

The VPB rates for 2025 and 2026 are:
- 19% on taxable profit up to EUR 200,000
- 25.8% on taxable profit above EUR 200,000

The lower bracket was deliberately kept attractive for SMEs and owner-managed BVs. A company with EUR 200,000 profit pays exactly EUR 38,000 in VPB.

**Computing taxable profit**

Taxable profit starts with the company's accounting profit under Dutch GAAP (or IFRS), then adjusted for tax-specific items:
- Participation exemption (deelnemingsvrijstelling): dividends and capital gains from qualifying subsidiaries (at least 5% shareholding) are fully exempt
- Innovation Box: profits from self-developed qualifying IP are taxed at an effective 9% rate rather than standard VPB rates
- Non-deductible costs: excessive remuneration above EUR 650,000, certain fines, 20% of business meal costs
- Transfer pricing adjustments for related-party transactions
- Fiscal depreciation rules (e.g. buildings can only be depreciated to 100% of WOZ value)

**Fiscal unity (fiscale eenheid)**

A parent BV and its subsidiaries (at least 95% ownership) can form a fiscal unity. This consolidates results so losses in one entity offset profits in another, and intra-group transactions are ignored for VPB. Useful for groups with loss-making subsidiaries.

**Thin capitalisation and earnings-stripping**

Net interest expense (interest paid minus interest received) is only deductible up to 20% of EBITDA or EUR 1 million, whichever is higher. This earnings-stripping rule (ATAD implementation) limits debt-driven structures. Specific anti-avoidance rules also restrict interest on related-party loans used to acquire group entities.

**Filing and payment**

The VPB return (aangifte vpb) must be filed within 5 months of the year-end, typically by 1 June for a 31 December year-end. Extension to 1 November is available on request via the Belastingdienst. The Belastingdienst issues provisional assessments (voorlopige aanslagen) during the year based on estimated profit; companies pay monthly instalments and true up on filing. VPB returns are filed digitally via the Belastingdienst portal.

Source: https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/zakelijk/winst/vennootschapsbelasting/

## Related terms

- [BV (Besloten Vennootschap)](https://accounts-os.com/nl/glossary/bv-nl)
- [Innovation Box (Innovatiebox)](https://accounts-os.com/nl/glossary/innovation-box-nl)
- [Deelnemingsvrijstelling (Participation Exemption)](https://accounts-os.com/nl/glossary/deelnemingsvrijstelling-nl)
- [DGA (Directeur-Grootaandeelhouder)](https://accounts-os.com/nl/glossary/dga-nl)