Alternatives for Dutch equity taxation – Box 3

Future of box 3 (tax on deemed income from equity)
From the 1st of January 2017 the Dutch equity tax of the so called box 3 changes. In effect, the tax burden on higher amounts of net wealth will be increased while the tax burden on lower amounts of net wealth will be decreased. The tax free amount will be € 25,000 per person.

Then, on the first € 100,000 of net wealth a deemed return on investment of 2.87% will apply. This percentage is said to be based on the average interest rates of the last five years. For the next € 900,000 the deemed return is 4.6% and for amounts of net wealth above 1,000,000 the deemed return on investment is 5.39%.

This system is advantageous for those who achieve a relatively high return, but at the same time it’s really unfavorable if the actual return is low.

How to avoid box 3-taxation?
It is possible to avoid this box 3 taxation. Continue reading “Alternatives for Dutch equity taxation – Box 3”

Stamrecht BV / Standing right company

Please note as of the year 2014 it will most likely not be possible any more to use the stamrecht facilities, please see our recent article:
In case of a severance payment a so called stamrecht or standing right limited liability company (BV) can be incorporated by the employee; the recipient of this severance payment. To this stamrecht BV the severance payment can be paid by the former employer without withholding any wage tax/premium. Depending on the facts it may be differ, but starting from a severance payment in excess of appr. EUR 75,000 a stamrecht BV may well be interesting. In case the employee has the benefit of the 30%-ruling, the BV can be used to retain this ruling and its benefits. Continue reading “Stamrecht BV / Standing right company”