Get the most out of your liquidation reserve
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What is a liquidation reserve?
Aso of 2015, the general meeting of a small company or SME* can decide to create a so-called liquidation reserve. This can be an interesting option because it significantly reduces the tax cost on dividend payments from your company to your private assets:
| Continuation of company | |
| start of liquidation reserve | 10% |
| withholding tax at end of waiting period | 5% |
| total tax costs | 13,64% |
| normal tax costs | 30% |
| Liquidation of company | |
| start of liquidation reserve | 10% |
| Withholding tax upon liquidation | 0% |
| total tax costs | 9,09% |
| normal tax costs | 30% |
*A company meeting 2 of the following 3 conditions: max. 50 employees, max €9 million annual turnover (excluding VAT) and max €4.5 million balance sheet total, on a consolidated basis.
The creation and distribution of the liquidation reserve does come with certain conditions. As an error can have negative consequences tax-wise, it is important to be prudent. If you are not certain that your company meets all the requirements, you can get in touch with our tax experts via your relationship manager.
Tax-friendly investing for your company
If your capital is tied up in the liquidation reserve for five years, you can still actively put it to work. Did you know that Delen Private Bank's discretionary asset management is also available for your company, in a tax-efficient manner? Through the DRD formula - dividends received deduction - capital gains and dividends on the equity portion of your investments are virtually completely exempt from corporate income tax.
Responsible wealth management for your private assets
At the end of the five-year period, you can have the liquidation reserve distributed in cash or in kind. In the latter case, you transfer the investments in the company to your private assets. In this case, too, Delen Private Bank will assist you in your asset management according to your wishes and tailored to your risk profile. Our financial experts closely follow economic news and the stock markets. And they invest your portfolio according to the principles of responsible wealth management, focusing on the long term and responding to themes that shape the future. At the same time, you maintain a detailed overview of your total assets thanks to the Delen app and Delen OnLine. Safe, fast and always at hand.
The liquidation reserve for your company
Feel free to discuss it with your relationship manager. He or she will be happy to go over the options and put you in contact with our tax experts.