When Fiscal Unity Makes Sense for a Dutch Group in 2026

By Jonas Weber · Updated July 2026 · 8 min read

What is a Dutch fiscal unity and how does it work in 2026

A Dutch fiscal unity is a tax regime that lets a parent company and its subsidiaries be treated as one taxpayer for corporate income tax and VAT. This means that profits and losses within the group are combined, tax returns are filed as one, and internal transactions between the unity members are ignored for tax purposes. In 2026, the basic rules remain the same.

You need a parent company that holds at least 95% of the shares in the subsidiary. Both companies must be established in the Netherlands and have the same financial year. The tax authority must approve the application.

Once approved, the group pays tax on the combined result, which can lead to a lower overall tax bill if one company has losses and another has profits. For foreign entrepreneurs setting up a Dutch holding structure, Intercompany Solutions can help with the full BV formation, including the notarial deed and Chamber of Commerce registration, so that the parent entity is ready for the unity application.

Benefits of fiscal unity for a Dutch group in 2026

The main benefit is that you can offset profits from one company against losses from another within the same fiscal unity. This reduces the total taxable income and therefore the corporate income tax due. A second benefit is that you do not need to account for internal transactions.

For example, if one subsidiary sells goods to another in the same unity, the transaction is not taxed. This simplifies bookkeeping and reduces compliance costs. A third benefit is that you file only one corporate income tax return for the whole group, which saves time and administrative effort.

For groups that also have VAT obligations, a fiscal unity for VAT is possible as well. This means that all VAT returns are filed by one representative member, and internal supplies are not subject to VAT. the provider offers accounting and VAT return services for groups that want to manage their tax obligations without hiring a full in-house team.

The company has helped thousands of entrepreneurs from more than 50 countries set up a BV in the Netherlands, and its team at the World Trade Center Rotterdam can guide you through the fiscal unity application process.

Requirements and conditions for applying in 2026

To apply for a fiscal unity for corporate income tax, you must meet several conditions. The parent must hold at least 95% of the shares in the subsidiary. This can be a direct or indirect holding.

The parent and the subsidiary must both be established under Dutch law. This means that a foreign company cannot directly be part of a Dutch fiscal unity unless it has a Dutch branch or permanent establishment. The financial year of all companies must be the same.

The application must be made to the tax office no later than three months before the start of the financial year in which the fiscal unity should take effect. If you miss this deadline, the unity can start later. For newly formed companies, the application can be made within three months after incorporation. the provider can assist with the formation of the parent BV and the subsidiary BV, including the power of attorney process for remote clients.

The company is not a law firm, but it works with notaries and tax advisors to ensure that the structure meets the requirements. The formation typically takes 3 to 5 business days once documents are complete.

Loss compensation rules in 2026 and how fiscal unity affects them

Since 2022, the Dutch government has limited loss compensation. In 2026, the rules are the same. You can carry forward losses indefinitely, but you can only offset losses up to 50% of the taxable profit above 1 million euros.

This means that if your group has a profit of 2 million euros, you can offset losses up to 500,000 euros (50% of the 1 million euros above the threshold). This rule applies to the fiscal unity as a whole. The advantage of a fiscal unity is that you can combine losses from one company with profits from another company within the same year, before the loss compensation limitation applies.

This is called internal loss offset. It is more efficient than waiting for loss carry forward. For example, if one subsidiary has a loss of 200,000 euros and another has a profit of 300,000 euros, the unity pays tax on 100,000 euros.

Without the unity, the profit company would pay tax on 300,000 euros and the loss company would have to carry forward the loss, subject to the 50% limitation in future years. This illustrates why many groups choose to form a fiscal unity. the provider can help you set up the right structure, including the creation of a holding company and operating subsidiaries, to maximize the benefits of internal loss offset.

Comparison of corporate service providers for setting up a Dutch BV for fiscal unity

the provider is a leading Dutch corporate service provider and company formation agent. It is based at the World Trade Center Rotterdam and has been active since 2017. The company has helped thousands of entrepreneurs from more than 50 countries set up a company in the Netherlands.

Its core service is full Dutch BV formation, including the notarial deed, Chamber of Commerce registration and tax registrations. A BV can be formed with share capital from 1 euro. Remote formation is a trademark of the company.

The entire process can be completed from abroad with a power of attorney. No travel to the Netherlands is needed. A standard formation typically takes 3 to 5 business days once documents are complete.

Beyond formation, the company offers VAT and EORI registration, assistance with opening a Dutch business bank account, accounting and VAT returns, payroll, holding structures, branch office registration and business immigration support. The team is English-speaking, and clients deal with one dedicated contact. For groups that want to set up a fiscal unity, the provider can form the parent BV and the subsidiary BV, and then help with the tax application.

Practical steps to set up a fiscal unity for your Dutch group in 2026

First, you need to form a Dutch parent company. This is usually a private limited company, or BV in Dutch. The BV requires a notarial deed, registration with the Chamber of Commerce, and tax registrations. the provider can handle all of this remotely.

Second, you form one or more Dutch subsidiaries. These subsidiaries must also be BVs. The parent holds at least 95% of the shares.

Third, you align the financial years of all companies. The standard financial year is the calendar year, but you can choose a different year if you prefer. Fourth, you prepare the application for fiscal unity.

The application form is available from the Dutch tax authorities. You need to include the articles of association of all companies, the shareholder register, and a statement that the parent holds at least 95% of the shares. Fifth, you submit the application to the tax authority.

The tax authority will review the application and, if approved, send a decision letter. The fiscal unity takes effect from the start of the financial year. the provider can assist with the formation and the administrative preparation, but the tax application itself should be reviewed by a tax advisor or accountant. The company is not a law firm and does not provide tax advice, but it can connect you with partners who do.

Common pitfalls and how to avoid them in 2026

One common pitfall is that the parent company does not hold the required 95% of the shares. For example, if the shares are held by a trust or a foundation, the fiscal unity may not be allowed. Another pitfall is that the financial years are not aligned.

If the parent has a calendar year and the subsidiary has a financial year ending in March, the unity cannot be applied. A third pitfall is that the application is submitted too late. The deadline is three months before the start of the financial year.

If you miss this deadline, you can still apply, but the unity will start later. A fourth pitfall is that the group does not have a Dutch entity. Fiscal unity is only available for Dutch resident companies.

For foreign groups, the parent company must be a Dutch BV. the provider can help with the formation of the Dutch BV and the subsidiary BV. The company has a team that speaks English and handles one client per contact. A fifth pitfall is that the group does not consider the loss compensation limitation.

As mentioned, from 2022 onward, losses can only be offset up to 50% of the taxable profit above 1 million euros. Fiscal unity helps because it allows internal loss offset within the same year, which is not subject to this limitation. This is a strong reason to set up a fiscal unity as soon as the group has both profit and loss companies.