If you have a limited company or are considering setting one up, you’ll want to know exactly what corporation tax will cost in 2026. The rates and brackets have remained stable compared to 2025, but that doesn’t mean there’s nothing to optimise. Below you’ll find how corporation tax works in 2026 and what to look out for as a business owner.
Two brackets and two rates in 2026
Corporation tax operates using a banded system. On the first €200,000 of taxable profit you pay 19%. Everything above that is taxed at 25.8%. This bracket threshold applies per taxable entity, so per limited company separately.
To illustrate: suppose your company makes a taxable profit of €260,000. You then pay €38,000 (19%) on the first €200,000 and €15,480 (25.8%) on the remaining €60,000. Together, that comes to €53,480 in corporation tax due.
Please note: the rates have been unchanged since 2023. Before that year, a threshold of €395,000 applied along with a lower rate of 15%. That reduction of the bracket threshold to €200,000 meant that more businesses fell into the higher band more quickly.
What counts as taxable profit
Corporation tax is not calculated on your turnover, but on your taxable profit. That is the profit after deducting business costs, depreciation, any loss relief and permitted fiscal deductions. The better you optimise that base, the lower your ultimate tax burden.
One point that director-shareholders also need to bear in mind: the customary salary of at least €58,000 in 2026 is a deductible cost for the company. This reduces the taxable profit and therefore the corporation tax bill, but at the same time increases your personal income on which income tax is due.
Deductions that reduce your taxable profit
There are several schemes with which you as a company owner can structurally reduce your taxable profit. The most well-known are:
- Small-scale Investment Allowance (KIA): for investments in business assets between €2,901 and €398,236, you can deduct up to €20,072 extra in 2026.
- Energy Investment Allowance (EIA): investing in energy-efficient business assets on the RVO Energy List? A deduction of 40% applies on the investment amount (minimum €2,500 per asset).
- Innovation Box: earning profits from innovative activities for which you hold an R&D declaration? An effective corporation tax rate of just 9% applies to those profits instead of 19% or 25.8%.
- Loss relief: losses from previous years can be offset against profitable years, reducing the taxable base.
- Environmental Investment Allowance (MIA): for environmentally friendly investments on the Environmental List, a deduction of 27% to 45% applies.
Combining the KIA and EIA is permitted; combining the EIA and MIA is not.
Plan een vrijblijvend gesprek en ontdek wat we voor je kunnen betekenen.
Plan een gesprekPractical points to note for 2026
In addition to the rates, there are a few matters relevant to you as a director-shareholder or SME owner in the current year:
- Digital filing only: requesting or amending a provisional assessment in 2026 can only be done via Mijn Belastingdienst Zakelijk, tax software or through a tax adviser. Paper requests are no longer accepted.
- Filing deadline: if your financial year runs in line with the calendar year, the filing deadline for the 2025 financial year is 1 June 2026. If you are unable to meet this deadline, apply for an extension in good time.
- Non-standard financial year: if your financial year differs from the calendar year, the €200,000 bracket threshold is recalculated on a pro-rata basis.
- Earnings stripping: the interest deduction limitation remains unchanged in 2026. Interest is not deductible to the extent that the net balance of interest paid and received exceeds 24.5% of profit and also exceeds €1,000,000. This is relevant if your company is financed with loans.
- Fiscal unity: within a fiscal unity, companies are treated as a single taxable entity for corporation tax purposes. Profits and losses are consolidated, meaning the lower bracket is used up more quickly.
Corporation tax versus income tax as a director-shareholder
The corporation tax rate rises to a maximum of 25.8%. By comparison, the top rate of income tax in 2026 is 49.50%. This difference makes a limited company fiscally attractive for business owners with higher profits. Nevertheless, the full picture is more complex: when distributing a dividend from the company, you also pay tax in Box 2 on what you pay out to yourself as a shareholder. The effective combined burden depends heavily on your specific situation, profit level and dividend policy.
Are you considering making the move to a limited company? It is wise to work out the figures carefully in advance to see what it will mean for you. You can read more about the fiscal considerations on our page about converting a sole trader business to a limited company.
Why Belastingadviseur Eindhoven
The rates are stable this year, but the optimisation of your tax position rarely takes care of itself. At Belastingadviseur Eindhoven, we know the situation of Brabant-based business owners inside and out. We don’t just look at the corporation tax return in isolation, but at the full picture: your salary as a director-shareholder, your investment plans, available deductions and the structure of your business.
Whether you already have a limited company, have just started out or are thinking about a holding structure — we are happy to think things through with you on a no-obligation basis. Feel free to contact us for an initial conversation.
Frequently asked questions
What are the corporation tax rates for 2026?
In 2026 you pay 19% corporation tax on the first €200,000 of taxable profit and 25.8% on everything above that. These rates are unchanged compared to 2025 and 2024.
When do I need to file my corporation tax return for 2025?
If your financial year runs in line with the calendar year, the deadline for the corporation tax return for the 2025 financial year is 1 June 2026. If your financial year ends on a different date, a period of five months after the end of the financial year applies.
Can I as a director-shareholder reduce corporation tax through my salary?
Yes, indirectly. The customary salary of at least €58,000 (2026) that you pay yourself as a director-shareholder is a deductible cost for the company. This reduces the company's taxable profit and therefore its corporation tax bill. However, you do pay income tax on your salary itself.
What is the benefit of the lower corporation tax bracket for my company?
On the first €200,000 of taxable profit you pay 19% instead of 25.8%. The maximum benefit of the lower bracket therefore amounts to €13,600 per taxable company per year (6.8% of €200,000).
Does corporation tax apply to a sole trader or freelancer?
No. Corporation tax applies exclusively to legal entities such as private limited companies or public limited companies. Sole traders and freelancers pay income tax on their business profits. The corporation tax rates therefore do not apply to their situation.
We are happy to think along with you. For advice tailored to your situation we would gladly sit down with you. No rights can be derived from the content of this page and it may contain inaccuracies.
