Suppose you are considering contributing your company in a private company with limited liability. The reasons to do so may be limiting liability or ensuring the continuity of the company. A private company may also be more advantageous in case of a future sale of the company. Finally, the tax burden may be lower when the company is operated in the form of a private company. Our specialists will be happy to help you in your deliberations on whether or not to contribute your company in a private company.
How to proceed?
If you want to contribute the company into a private company with limited liability, there are two alternatives:
- Taxable contribution: you settle with the Dutch Tax and Customs Administration on, among other things, the goodwill, hidden reserves and retirement reserve (discontinuation profit) of your company. Bargaining for a discontinuation annuity does not always have to lead to direct payment of income tax.
- Untaxed contribution: there is no settlement of discontinuation profit. The future tax claim will be transferred to the private company.
Mazars can assist you with:
- The deliberations on whether or not to contribute your company into a private company
- Determining the discontinuation profit
- Providing an insight into the consequences of taxable or untaxed contribution
- Implementing the contribution into the private company
- The request with the mandatory calculations to the Tax and Customs Administration for the untaxed contribution