Corporate income tax

Corporate income tax is an internationally frequent direct tax on “income” that is levied by a state (or a lower government body) of legal entities. For the determination of income subject to tax, a distinction is usually made between legal entities established in that State (residents of the State) and legal persons not established in that State, but who, on the other hand, do receive income from that State (source income).

Corporate taxpayers in the Netherlands are taxed on their world-wide income. Nevertheless, exemptions can be claimed for certain income from abroad such as dividend income and capital gains in relation to qualifying participations (participation exemption).