The most important amendments under the Tax Proposals for 2006 are as follows: Corporate income tax The corporate income tax rate will be reduced to 25.5% (2005: 27%) on the first EUR 22,689 of profits, with the excess being taxed at 29.6% (2005: 31.5%). As from 2007, the these rates will be further reduced to 24.5% and 29.1% respectively. The provision on tax-deductible devaluation of a shareholding during the first 5 years after the acquisition of a participation of at least 25% is abolished.