Corporate tax revenues surge to record levels
June 17, 2024
In 2023, corporate tax revenues in the Netherlands reached an unprecedented €48 billion, doubling from five years ago, according to preliminary data released by the Central Bureau of Statistics (CBS).
Over the past five years, the contribution of corporate tax to the total government revenue has increased significantly. While overall tax and social premium collections rose by about one-third, the surge in corporate tax revenue was notably higher, outpacing other sources such as income tax and social contributions. The proportion of corporate tax within the collective tax burden climbed from 8% in 2018 to 12% in 2023.
Economic and policy factors
Several factors contributed to this sharp rise in corporate tax revenues. During the COVID-19 pandemic, companies were allowed to lower their provisional tax assessments, leading to substantial additional payments in the following years. This policy shift, unadjusted in CBS reports, played a significant role in the increase.
Moreover, corporate tax rates saw changes between 2022 and 2023. In 2023, businesses paid 19% on profits up to €200,000, compared to 15% on profits up to €395,000 in 2022, while the higher bracket rate remained steady at 25.8% for both years. Additionally, soaring energy prices inflated profits in the fossil fuel sector, further boosting tax revenues.