Keizersgracht 62

1016 CS Amsterdam

+31 (0)20 520 7991

Lines close at 4pm

Mon-Fri: 9am - 5pm

Our office hours

Corporate bookkeeping up to date for the year 2014?

LinkedIn
Facebook
YouTube

December time is the period in the year that you have to clean the balance before it is frozen in the annual report on December 31. What needs to be done?

The main focus of the tax office is the profit, then the salary, was it high enough, but the next item on the target list of the Revenue is the current account between the linked companies. Why is this on the target list of the Revenue? Basically because it is too easy to shoot at it and win.

A current account is a result of money being transferred from one company to the other within a group. The tax office indicates this to be a loan agreement. The basic criteria for a loan agreement is a transfer price proof interest percentage, repayment schedule and collateral. If that is not the case, the loan is regarded equity, equity is not desired by the group of companies.

In most, if not all, current account agreements the repayment scheme is not taken into account. If there is a current account agreement, the repayment scheme is solved by the words repayment at once at the desire of the collecting party.

The collateral is nearly never provided. Although the tax office is keen to address the loan as equity, jurisprudence has indicated that a higher (more risk) interest percentage can solve the lack of collateral.

To prevent such discussion or to limit such discussion, December is the time to look at the current account status. Most of the time it is created by the holding company having no money only invoices or salary to be paid. The working company having money and paying for the holding company. This current account is solved by either the holding company issuing a management invoice or having the working company paying a dividend. Under the participation exemption the dividend tax is charged at 0% dividend withholding tax.

No only is the current account issue easily solved, with a dividend payment the generated profit by the working company is secured with the holding company against a possible bankruptcy of the working company.

Share:

Facebook
LinkedIn
gouden_luca_prize
Gouden Luca Prize 2024 - Exact Bookkeeping award!

Reach out to us on Social Media

Recent posts

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.

Expats in NL podcast featuring Arnold!

Main pages overview

On Key

Related Posts

Your Annual Income Statement (jaaropgaaf)

The Annual Income Statement (AIS) is a document stating your annual income, income tax deducted and any applied credits. Your employer will issue it early in the year after the year of the tax return.

Please also give details of benefits with the AIS from the UWV.

NB Salary slips are not the same as an AIS. If you cannot obtain your AIS, we can use your salary slips but these may not be accurate and may be updated by the figures given to the Tax Office by your employer.

If you have foreign income, send us the AIS for this if possible. Otherwise provide salary slips. We also need to know if the work was performed abroad or remotely from NL.