Changes in tax rates with respect to CIT and the Innovation Box
The top CIT rate will remain 25%, while the lower CIT rate (applicable to the first EUR 245,000 of taxable profits) will be reduced to 15% (from 16.5% in 2020). The first bracket has therefore been extended from EUR 200,000 in 2020 to EUR 245,000 in 2021, and to EUR 395,000 in 2022. Companies may consider splitting up fiscal groups in order to benefit from the 10% difference between the top and lower CIT rates applicable in 2021. In doing so, there could possibly be a benefit of EUR 24,500 (in 2021)per company.
The effective tax rate for the Innovation Box regime will be 9% (which is a 2% increase from 2020). Companies can consider preparing for this by, for example, accounting for the release of a guarantee provision (if possible) in 2020.
