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
You intend to buy a new home and you want to be sure that your financing is arranged in a proper manner, both fiscally and legally. As a director and major shareholder, it may be interesting to borrow the required financial resources from your own company. Or you may want to finance the purchase of your children's home from private resources. Our specialists will be happy to answer these and...
Do you have a substantial interest in a company? You may have to pay tax on the income thereof. You have a substantial interest if you meet certain requirements.
