As a business owner, you want to ensure your tax position is correct. But the rules surrounding corporate tax and income tax are constantly changing. Their impact on you and your business is significant. How do you utilise tax-deductible losses? When is a different business structure or legal entity potentially more advantageous from a fiscal standpoint? And how do you avoid double taxation or errors in your tax return?
A fully ‘tax-optimised’ and well-organised business, in which declarations are not only correct, but also strategically structured, enabling you to make use of the available schemes, offset tax losses, and avoid paying too much tax unnecessarily. The right structure allows you to grow, make acquisitions, or invest. Without good fiscal insight, you risk missing out on opportunities and being faced with penalties. Whether you have a private limited company, a sole proprietorship or a different type of business structure or legal entity, such as a fund for joint account or a general partnership, it pays to monitor your tax strategy consistently.
We help you gain and maintain control of your tax position. We analyse your current structure, offer advice on how to optimise, and assist with restructuring, acquisitions or changes in business structure and type of legal entity. In addition, we ensure that your tax returns are accurate. We also look ahead: which fiscal choices are aligned with your ambitions?
You know where you stand in terms of your tax position and what steps you can take to make further improvements. You are fully compliant with laws and regulations, utilise tax schemes that are available to you and avoid any surprises further down the line. This gives you peace of mind, space and the financial firepower to conduct your business.
Contact our specialists for more information about our services.
Grant Thornton Netherlands is a member of Grant Thornton International Ltd (GTIL), one of the world's largest networks (#7) of independent accounting and advisory firms, with 76,000 professionals in 156 markets. From eight Dutch offices, more than 700 professionals support our clients with advice and guidance in the fields of accountancy, tax, and (financial) advisory. We deliver world-class expertise in a way that seamlessly aligns with each client's unique situation. We operate from a solid foundation with a flexible and results-driven mindset.
You are required to pay corporate income tax if your company is registered for corporate tax (VPB). This applies in most cases to private limited companies (BVs), public limited companies (NVs) and cooperatives. Foundations and associations may also be liable for corporate income tax under certain circumstances, for example, if they profit from commercial activities.
The tax is levied on your taxable profit during the financial year. You must file an annual tax return, usually within five months of the end of the financial year. In many cases, it is possible to request a postponement.
As a business, you can use several income tax deductions to reduce your taxable profits. For instance, deductions for self-employed professionals, start-up deduction, SME profit exemption and the investment deduction. You can also deduct expenses you incur as part of your business, such as business travel, training or representation.
If you employ personnel, you can also use labour costs compensation and other specific exemptions. These schemes are designed to encourage entrepreneurship and stimulate innovation. By applying the correct deductions, you can reduce your tax burden and invest more money back into your business.
The question of whether a sole proprietorship or a limited liability company is more advantageous from a tax standpoint depends on your profit level, risk profile, and future plans. For lower profit levels, a sole proprietorship is often more appealing, because of the many deductions on offer, including, e.g. the deduction for self-employed professionals, and SME profit exemption.
As profits increase, a private limited company may become the better option, because you then benefit from a lower corporate income tax rate (due to the step-up in rate) and can award yourself a suitable salary. Liability also plays a role: with a limited liability company, you carry less liability personally for business debts. A customised evaluation is required in order to draw up a good comparison. We are happy to help you make an informed decision that suits your situation.
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