Dutch participation exemption

Gains and losses from a participation are normally not part of the taxable profits. The Dutch Participation Exemption (PE) scheme guarantees that profits, which are charged to a subsidiary, will not be charged again to the parent company. This article explains how the exemption works in practice. Companies which are tax resident in the Netherlands are generally subject to Dutch corporate income tax (CIT). The regular CIT rate of 20-25% applies to a company’s worldwide profits. The worldwide profits include business…

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Private shareholding: keeping your shareholding confidential

Private shareholding: how can I keep my shareholding in a Dutch BV private? In order to set up a Dutch Limited Liability Company, you will need to fulfil “know your client procedures”, so that the Dutch notary will know who the shareholder is. However, sometimes you may want to keep your shareholding confidential. If the “know your client procedures” has been  fulfilled, you can make your shareholding in a Dutch BV as private as you deem appropriate.  There are various…

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