The Initial Situation

A high tax burden held back reinvestment.

A Dutch e-commerce entrepreneur ran his business as a sole proprietorship. At €480,000 net profit he fell into the top bracket, with an effective rate just above 49%. Every euro of profit was taxed heavily first. That made reinvesting hard.

€480,000

Net profit per year

49%

Effective tax burden

Sole proprietorship

Structure at the outset

Our Approach

A durable structure for growth and reinvestment.

01
Situation and profit flows analysed
Pijl die diagonaal naar linksonder wijst.
02
Tax-neutral contribution into a BV holding structure
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03
Liquidity passed up tax-free to the personal holding
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04
Operational liability ring-fenced
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Lachende man met bril en donker pak met gevouwen handen aan een bureau.
The Outcome

Structurally €210,000 a year freed up for growth.

The effective tax burden fell from 49% to around 19% at company level. At his profit level that means a structural annual saving of €210,000, directly available for reinvestment, wealth building or a future exit.

Logo suits

With the right structure you pay less tax not through tricks, but because your business is set up the way it should be.

— Suits Finance

19%

Effective corporate rate

€210,000

Saving per year

€0

Tax on contribution

Relevant partner

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Abdullah Sezen

Partner - CFO