In two press releases of 23 and 24 April 2006, the Ministry of Finance announced that the Dutch Council of Ministers approved a bill that contains proposals regarding "Work on Profit". The bill provides for the following rate reductions as from 2007:
|-||the corporate income tax rate would be reduced from 29.6% to 25%. In addition, the rate for small- and medium-sized companies would be reduced to 20%; currently, the rate is 25.5% for profits up to EUR 22,689;|
|-||9% of the profits of entrepreneurs subject to personal income tax would be exempt, resulting in a reduction of the top income tax rate for entrepreneurs from 52% to 47.32%; and|
|-||the dividend withholding tax would be reduced from 25% to 15%.|
The costs of these measures are estimated at EUR 730 million.
Depreciation of business / industrial property would no longer be possible if the book value of the building and land is below 50% of its fair market value. In the report "Work on profit, towards a lower rate and a broad base", it was proposed that depreciation of a building would no longer be possible if the book value of the building and land is below its fair market value.