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Stamrecht BV / Golden parachute BV / Severance payment BV – update

The Stamrecht BV incorporation possibility closed on December 31, 2012. The adventurous offer the Government issued with 20% discount was only in the year 2014.

Current status Severance payment BV

The current status is that we are in 2015, a year in which the interest you can receive on a bank account dropped under 1%. At the same time the fiscal regulations dictate that the pension right, being the amount you deposited in the Stamrecht BV needs to increase per year at 4%.

Your Stamrecht BV agreement might have a much lower amount, that is possible, but from a fiscal point of view it cannot be lower than 4%.

The situation of your golden parachute BV is then that the obligation increases four times quicker than the money to support the obligation. The result is that after a certain period you would like to use the Stamrecht BV facility to come to the conclusion that there is enough money to pay for the tax, but not enough to pay the net amount to yourself.

The thought of a Stamrecht BV is to spread the 52% tax brackets over lower brackets and or to wait for a new tax regime with lower tax brackets under which you can make the payout. The low interest percentage is a thread to this thought.

Stamrecht BV update

What will you do?       

You can have trust in the future and leave it like it is in the hope the interest rate goes up dramatically. That could be a likely scenario. In the USA there are already hints of the interest going up, but how quickly we do not know. Money flows to the part of the world were the interest is the highest. If that is in the US dollar part of the world, US dollars will become more scares. Scarcity results in increased value, increased value in money is a higher interest rate. An increase in interest could result in a snowball effect. But then again, we are not in the US dollar part of the world. However, the US dollar part of the world could ignite the EURO part of the world.

Another possibility is to start making the payments from the Stamrecht BV. That implies you take the loss, or if you have not made a loss yet, you prevent getting into a loss position.

The aforementioned solutions only applies to Stamrecht BV situations that actually have money in the bank account. The Stamrecht BV could also have issued a loan to the share holder who used it for the purchase of a house, or replace a mortgage on the house. Then you cannot easily dissolve the Stamrecht BV as you have to replace the loan you took out again. At the same time you can increase the interest on the loan to make it inline with the fiscal requirement and you still make no loss. If the loan is for a house in Box 1, the interest you pay to your Stamrecht BV is tax deductible.

Orange Tax Services

We will be able to assist you. We cannot make the choice for you what to do with the Stamrecht BV, that is your decision, but we can assist with the payout or calculations as a result of the decision made by you.

Does this post make you want to get in touch? Go for it!

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