I moved abroad with my Dutch BV company, what are the corporate income tax consequence? Any other tax that comes into play?
Moved abroad with my Dutch BV company
The Dutch BV company is a limited liability company incorporated in line with the Dutch law. This implies that regardless where the company moves, a Dutch corporate income tax return is to be filed.
Due to the fact that the Dutch BV company is now registered in the other country, the other country will tax the proceeds in that other country. Only the proceeds generated in the Netherlands are still subject to corporate income tax in the Netherlands.
How does a Dutch BV company move country?
Substance is the magical word. Substance is the place or residence of any limited liability company. Also the Dutch BV company. What determines the substance? The substance is determined by the human beings making the decisions in the limited liability company. We refer to those human beings as the directors of the limited liability company.
In short, the moment the director of the Dutch BV company moves country, the Dutch BV company moves country.
Double taxation for the Dutch BV company in the other country and the Netherlands?
Double taxation is prevented by processing the books correctly and show a Dutch result in the Netherlands. A non Dutch result should not show in the Netherlands. This implies that the moment the BV moves away from the Netherlands, probably nothing is happening in the Netherlands. Maybe some costs like the tax advisor filing the corporate income tax return!
The Dutch BV Dutch corporate income tax return will probably be zero. Hence no double taxation.
Any other tax involved in the move of the Dutch BV company?
The moment the Dutch BV company moves country, it is possible the BV company has a positive profit reserve. The Dutch dividend withholding tax will at some point tax that result. Either when a dividend payment is done, the BV is liquidated or the shares are sold.
Moving the Dutch BV to a country that has much lower taxation on the profit result is a motivation for some. Hence the Dutch tax office will at the moment of moving fix the profit result. Present the shareholder with the exit tax return over the value of the profit reserve. If at any point the company is liquidated, dividend is paid, shares are sold, or the shares are put up for collateral or usufruct, the assessment is to be paid. Till any of these events happen, no payment obligation exists. A lifelong obligation.
Dutch tax return filing obligation
You might have notices we mentioned above under the minor costs the costs of the tax advisor. The tax advisor filing the corporate income tax return for the BV company that has left the Netherlands. We would like to be that tax advisor for you! Indeed, probably a simple corporate tax return to be filed. Yes, a lot of zeros are involved. Still it is an obligation with a severe penalty if not met. We offer this service at a rather competitive fee, check out our website.
Tax is exciting
We think tax is exciting. Some find it less exciting to file a corporate tax return only out of obligation, not due to any result being made. That is called “ part of the game” . We will be pleased to assist you in this game.
