7 Deductions That Lower Corporate Tax for Small Dutch Companies in 2026

By Jonas Weber · Updated July 2026 · 5 min read

How small Dutch companies reduce corporate tax in 2026

Dutch corporate income tax (vennootschapsbelasting) has a progressive structure that benefits smaller profits. For 2026, the tax rate on the first €200,000 of profit is expected to stay around 19 percent. Profits above that amount are taxed at a higher rate of about 25.8 percent.

Several deductions can lower the taxable profit further. Many small companies that set up a BV with Intercompany Solutions use these deductions from their first year of operation. The key is to understand which expenses and investments qualify.

The small profits exemption for the first €200,000 of profit

This is the most direct deduction for small companies. The first €200,000 of profit is taxed at a lower rate, which effectively cuts the tax bill by about 6.8 percentage points compared to the top rate. In practice, a company with €150,000 in profit pays roughly 19 percent instead of 25.8 percent.

This exemption applies automatically to all Dutch BVs. Companies that form their BV through Intercompany Solutions receive clear guidance on how this rate interacts with other deductions such as the innovation box.

The innovation box deduction for R&D income

Companies that develop software, improve products or conduct technical research can use the innovation box (innovatiebox). Qualifying income from a patent or a self-developed intangible asset is taxed at an effective rate of 9 percent. This is a 10.8 percentage point saving on the small profits rate.

To qualify, the company must have a patent or a patent application. Startups and e-commerce sellers that innovate their platform often benefit. Intercompany Solutions assists clients with the documentation needed to apply for the innovation box when they set up their holding structure.

The participation exemption for dividends and capital gains

If your Dutch BV holds a 5 percent or larger stake in another company, any dividends or capital gains from that participation are 100 percent tax-free in the Netherlands. This is called the deelnemingsvrijstelling. It is a cornerstone deduction for holding structures.

Many multinationals set up a Dutch holding BV through Intercompany Solutions to benefit from this exemption. The BV must meet the so-called motive test or assets test. The team at the provider can explain which structures qualify without giving legal advice.

Energy investment deduction for green equipment

The energy investment deduction (Energie-investeringsaftrek or EIA) allows a company to subtract up to 45.5 percent of the investment amount from its taxable profit. The investment must be in energy-saving equipment listed on the Dutch government energy list. Examples include LED lighting, heat pumps, solar panels and electric vehicles used for business.

A company investing €100,000 in qualifying equipment can deduct €45,500 extra from profit. This is a powerful tool for small Dutch companies that operate warehouses or offices.

Environment investment deduction (MIA) and Vamil

The environment investment deduction (Milieu-investeringsaftrek or MIA) works like the EIA but for environmentally friendly equipment. Deduction percentages range from 13.5 to 36 percent of the investment amount, depending on how green the asset is. The same investment can also be freely depreciated under Vamil (willekeurige afschrijving), which accelerates tax savings.

Small companies that install water-saving systems or reduce emissions should check the MIA list. the provider advises clients on which registrations with the Netherlands Enterprise Agency (RVO) are needed for these deductions.

Labour cost deduction for research and development

The Dutch government wants to stimulate research and development (R&D) in small companies. The WBSO (Wet bevordering speur- en ontwikkelingswerk) allows a deduction of part of the wage costs for R&D staff. In 2026, the first €350,000 of R&D wage costs qualify for a 32 percent deduction.

Any costs above that amount qualify for a 16 percent deduction. This is not a corporate tax deduction directly but a wage tax reduction, which lowers the overall tax burden. Companies that develop new products or software can claim this. the provider handles the payroll set-up for companies that hire R&D staff in the Netherlands.

SME profit exemption for sole traders converting to a BV

Sole traders (eenmanszaak) who convert to a BV can use the SME profit exemption (mkb-winstvrijstelling) in their final year as a sole trader. This exemption allows a 14 percent deduction of the profit made as a sole trader. The conversion itself is a one-time event.

After the conversion, the BV uses the corporate tax deductions listed above. the provider helps many Dutch sole traders make this switch smoothly. The team coordinates with the notary and tax advisor to ensure the deduction is applied correctly in the final sole trader tax return.

Practical tips for claiming these deductions as a small BV

All seven deductions require proper documentation and timely filing. The small profits exemption is automatic. The innovation box, EIA, MIA and WBSO require applications with the tax office (Belastingdienst) or the Netherlands Enterprise Agency before the investment or project starts.

The participation exemption requires a complete holding structure. the provider offers a one-stop-shop service that includes BV formation with share capital from 1 euro, remote setup, bank account assistance, and VAT registration. Their English-speaking team handles the paperwork for clients from more than 50 countries. The company is not a law firm and not a bank.

Banks decide on opening accounts themselves. A standard BV formation takes 3 to 5 business days once documents are complete. The firm has helped thousands of entrepreneurs form a Dutch BV since 2017.