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Slim Business

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Both in a sole proprietorship and in a private company you can take smart action. KIBO takes you along and shows you how to do this.

The income tax in the Netherlands is legal neutral regulated. This means that the tax on profits in a sole proprietorship or in a BV differs widely. That makes it attractive for many small and medium-sized businesses (SMEs) to be creative and to engage in and in BV and in a sole proprietorship. The entrepreneur with a BV may transfer that undertaking to him or her in whole or in part. For the income tax (IB) he becomes an IB entrepreneur with a sole proprietorship. Suppose the BV makes a profit on the transfer of assets and liabilities. It is taxed in the BV against a corporation taxof 20% (or 25% with a profit above € 200,000). In the IB company, these capitalized gains can be written off against the always higher IB rate. This may mean cash flow for the company’s liquidity. The combination BV and sole proprietorship mainly benefits because the CEO-Major Shareholder (DGA) – but now as a starting IB entrepreneur – can benefit from many fiscal benefits. Remember the SME profit, the self-employed , the start-up allowance and random depreciation for starters. The entrepreneur is expected to work for the sole proprietor at least 1,225 hours a year (for the 14% SME benefit exemption is not required). You can combine a BV and sole proprietorshipeffect by launching new activities in the form of a sole proprietorship in addition to your BV. This is also possible by acquiring part of the business activities of the BV. In addition, an enterprise between the shareholder and its BV can offer a lot of attractive fiscal benefits .

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