Budget leaks: lowest corporate tax rate to be cut to 20%
Caretaker finance minister Jan Kees de Jager is planning to permanently cut corporate taxes to boost small and medium-sized firms, the Financieele Dagblad reports on Friday, quoting a leaked finance ministry document.
The paper says De Jager wants to cut the corporate tax rate on the first €200,000 profit to 20% on a permanent basis – a measure which will boost smaller firms.
The reduction was introduced as a temporary measure in 2009 to help companies hit by the economic crisis.
Before then, firms paid 20% tax on the first €25,000 profit, rising in stages to 25.5% for profits over €60,000.
De Jager is also planning to cut the top rate for all firms from 25.5% to 25%, the paper says.
Successive governments have reduced corporate taxes because of fears that they made the Netherlands uncompetitive. In 2002, the top rate was 34.5%.
The tax cuts are contained in the finance ministry’s 2011 spending plans which are due to be formally published next Tuesday as part of the budget.
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