
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.
Net profit per year
Effective tax burden
Structure at the outset

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.
Effective corporate rate
Saving per year
Tax on contribution