SlideShare a Scribd company logo
Dutch Holding Structures
Phillip Kraeter
Chief Strategy Officer (The Hague)
March 2021
Introducing
MCI CLT
• MCI CLT is an international
Law, Tax, Compliance & Management Corporation,
established as Intelligent Corporate Service Provider
(Counselling, Treasury, Banking & Finance, CFO),
Asset Manager, Custodian and Facilitator.
• Our focus is on Intelligent Corporate Services, Custody,
Assets & Holdings Management tailored to our Client’s
individual Taxation and Legislation Requirements and
Matters.
• MCI CLT Netherlands is highly specialized Holistic Partner
related to the domestic and international utilization of
Netherland’s Entity, Holding and Foundation Legislation.
Who are we?
Advisory & Service
Portfolio
MCI CLT Netherlands,
The Hague
Introduction
to Holdings
• Purposes & Motivation for a Holding:
Ownership Bundling, Risk Optimization,
Capital Protection, Tax Planning, Structuring,
Exit Route for Profits, . . .
• Classic Jurisdictions:
Seychelles, Mauritius, Cyprus,
Hong Kong, United Arab Emirates
What is a Holding?
Which Jurisdictions
are in demand?
Dutch Holding
Introduction
• Developed Infrastructure for
Stability & Longevity
• The Dutch Corporate & Tax Laws
are historically flexible
• Less than common Complications elsewhere
• Low Cost of Incorporation &
Annual Maintenance (Structural Cost)
• Straightforward Procedures
• Rich Tax Network as part of the EU:
90+ Double Taxation Avoidance Treaties
What is attractive about it?
How is it possible?
Substance
Requirements
• Almost no Substance Requirements
• Management Services 
• Registered Office / Address 
• Does not need Employees
• Can be serviced by a Trust Company
What are the present
Substance Requirements
for a DH?
Dutch
Participation
Exemption I
• Tax Exemption on Revenues / Earnings
from Dividends, Capital Gains and
Royalties if they arise from a (qualified)
Subsidiary
• Holding (parent) Requirements to qualify:
• Assets in DH cannot exceed 50% of Passive
Assets – Asset Base must always be enriched
with Active Assets
• DH must generate higher ROI than Profits
from Passive Asset Management
What is the Dutch
Deelnemingsvrijstelling?
Which conditions must be
met for it to activate?
Dutch
Participation
Exemption II
• If the DH qualifies, the DH Subsidiary must further
qualify, by meeting the Criteria:
• Being owned by a Dutch Taxpayer (like the DH)
at least by 5% of paid-in Nominal Shares
• If Activities of Subsidiary classify as ‘Passive Investment
Activities’, 10% Profits Tax applies
• Cannot be a ‘Fiscal Investment Fund’
• If all above holds true, DH enjoys Tax Exemption
for the aforementioned Income Streams
• Corporate Taxation of regular Profits remains 25%,
if Profits exceed EUR 245,000 (15% if below)
• DH represents a layer of Protection between the
Individual and the Business Activity (Limited Liability)
Restrictions applicable
to Subsidiaries
Activities &
Benefits
of a DH I
• Wide Variety of Activities possible
• May act as Regional HQ, allowing for
Collection of Dividends,
Receiving Interest or Royalties from
Subsidiaries (in one company)
• Can act as Financial Service Company
• Multitude of Benefits beyond previously
mentioned Tax Exemption
• A clear seperation between legal and tax
related advantages exists
Possible Business Activites
of a DH
Benefits of a DH
1 Excellent infrastructure
2 Little Substance requirements
3 No foreign currency exchange restriction
4 Flexible corporate law
5 Advance tax ruling
6 5.0% withholding tax rate on dividends, interests, royalties
7 Tax treaty benefits with over 90 countries
8 Low incorporation costs & running costs
Benefits of DH I
Activities & Benefits of a DH II
Legal Advantages include:
• Activities & Assets kept separate,
improving Liability Situation
• Provides Flexibility upon Sale of
Assets
• Operating Companies kept light
weight for Liability Reasons
(distribution not taxed)
Tax Advantages include:
• Significantly lower Tax Burden,
down to 5% effective Rate
• Enables Reinvestment of Profits
into Corporate Structure(s)
Tax Treaty
Network
• Tax Treaties with more than 90 Countries,
exceeding European Borders
• Helps to avoid Issues to do with Dual-
Residency, Permanent Establishment,
Double Taxation or others
• Allows for Reduction of Withholding Tax
with Dividend Payments to
Investor’s Home Country
How extensive is NL’s
Tax Treaty Network?
Which Benefits does
this entail?
EU
Withholding
Tax Exemption
• A 0% withholding Tax Rate for any qualifying
Corporate Dividends paid within EU exists if:
• Shareholder is a Corporation, qualifying as Tax Resident
of other EU or EER States*
• Shareholder (corporate) would also qualify
for Dutch Participation Exemption
• Shareholder is not a Tax-Exempt Portfolio Investment Fund
• Shareholder has no Dual Residency Status in
Countries outside of EU/EER
• Qualifies as beneficial owner of shares
• No Tax Treaty with Anti-Abuse Clause present
• Possible Double Layer Holding Structures attractive,
even for non-EU resident Investors
• E.g. Double-Irish with a Dutch Sandwich (Google)
What is the EU Withholding
Tax Exemption?
What is needed
for it to apply?
*Not Liechtenstein
Dutch Finance
Company:
Alternative I
• Main type of DFC: Dutch Group Finance Company, DGFC
• Must own an Office and own Bank Account with an equity at risk of
at least 1% of outstanding Loans (or exced EUR 2 Million, if less than
1%)
• Resistant to foreign Anti-Abuse Provisions
• May provide Loans to Subsidiaries, Shareholders and Group
Companies
• May function as Holding or even Operating Firm
• 75-80% of Net Interest Income is excluded from Taxation Base
• Must comply with Dutch Tax Filing and Registration Requirements
• Increased scrutiny:
Means DFC must file Annual Corporate Income Tax Return,
obtain Tax Residency Status, manage VAT Returns
and manage Dividend Withholding Tax
What is a DFC?
Why is DFC an attractive
alternative Holding
Structure?
What are some Drawbacks?
Dutch
Cooperative:
Alternative II
• DC can receive Dividends without incurring Dividend Withholding
Tax
in the origin Country of the Subsidiary
• May be eligible for DPE, despite being subject to
Dutch Corporate Income Tax
• Uses ‘Members’, not ‘Shareholders’
– DC must have at least 2 Members at Time of Incorporation
• Limited Liability: Members can be treated like Shareholders,
entitled to Profits of DC, but no Capital Dividend in Shares
means: No Minimum Capital
• Not a standard Legal Form, therefore maybe scrutinized by
Authorities
• To avoid this, a B.V. company could be the Intermediary between
DC and Foreign Payment Company, making it
a viable Option for Foreign Investors
What makes a DC
different?
How does it fare against
other types of
Dutch Holding Structures?
Dutch
Stichting:
Alternative III
• Simply take a Foundation – comparable
to a Traditional Trust, but:
• No Shareholders / Members
• Legally seen as its own Entity (Rights & Rules)
• Used to separate and protect Private Assets
• Stichting is its own UBO!
• Distribution of Funds to be altruistic
• Typically exempt from Corporate Income Tax
• Must register with Trade Register & file
Annual Reports (if active, passive = exempt)
What is a Stichting?
What is the Legal Status
of a Stichting?
What can it be useful for?
Dutch
STAK:
Alternative IV
• Foundation with add-on of Depositary Receipts (DR),
adding an Administrative Element
• Happens by interlodging a holding beneath it (in most cases a B.V.)
• Voting and Economic Rights are seperated
• Allows Asset Protection
• Allows Takeover Protection
• Voting held by STAK, Beneficial Ownership
is held by Shareholders which hold the DRs
• Typically, not subject to Dutch Corporate Income Tax
and Withholding Taxes as it is not an ‘Acting Business'
• Taxed at level of Participants, in Country of Residence
• STAK must also be registered with Trade Register
and prepare Annual Returns (may not need to show)
What is the Administrative
add-on of the STAK?
Why can it be a
Viable Solution?
Solution Model: Hybrid Holding
• On a B.V. (or N.V.) as Holding for the Business Operations,
a Foundation with STAK Feature will be “topped up” as its Owner
• The STAK Administration issues the DR’s to the UBOs
• UBOs:
• Individuals if DTTA Status is green
• IBC if DTTA Status is orange or red
• The Withdrawal Taxation Scenario can always differ between:
• NL and the Jurisdiction of the Individual UBO
• NL and the Jurisdiction of the IBC
• IBC Jurisdiction and the Jurisdiction of the IBC Individual UBO
• These three Constellations always require case by case assessment
under the related DTTA's (bi-lateral, tri-lateral, multi-lateral)
MCI CLT:
Where
to find us
MCI CLT (Asia) Limited
恆信法律稅務顧問(亞洲)有限公司
1/F CMA Building ● 64-66 Connaught Road
Central ● Hong Kong ● Hong Kong S.A.R.
Phone: +852 3652 7648 ● Fax: +852 3583 4834
E-Mail: hk@mciclt.asia ● Web: www.mciclt.com
MCI CLT (China) RO
R 25E, 25/F ● SangDa Ya Yuan
HuaFa North Road ● Futian Technology District
518031 Shenzhen ● Guangdong ● P.R.C.
Phone: +86 755 8252 2443 ● Fax: +852 3583 4834
E-Mail: sz@mciclt.asia ● Web: www.mciclt.com
MCI CLT (Vietnam) RO
恆信法律稅務顧問(亞洲)有限公司
Số 6, Ngõ 127/38/14 ● Hào Nam
Ô Chợ Dừa ● Đống Đa ● Hà Nội ● Việt Nam
Phone: +84 86 522 91 50 ● Fax: +852 3583 4834
E-Mail: han@mciclt.asia ● Web: www.mciclt.com
MCI CLT (ME) DWC-LLC
‫ش‬ ‫ﺳﻲ‬ ‫دﺑﻠﯾو‬ ‫دي‬ ‫اﻷوﺳط‬ ‫اﻟﺷرق‬ ‫ﺗﻲ‬ ‫أل‬ ‫ﺳﻲ‬ ‫آي‬ ‫ﺳﻲ‬ ‫أم‬ ‫ﺷرﻛﺔ‬
.
‫ذ‬
.
‫م‬
.
‫م‬
1
/ F Dubai World Central Headquarters
P.O. Box 712570 ● Dubai South, Dubai ● U.A.E.
Phone: +971 4 557 13 73 ● Fax: +971 4 432 84 48
E-Mail: dxb@mciclt.me ● Web: www.mciclt.com
MCI CLT (Europe) Br.
Weinbergsweg 3
D-29456 Hitzacker (Elbe) ● Germany
Phone: +49 5862 309 79 23 ● Fax: +49 5862 309 79 24
E-Mail: de@mciclt.eu ● Web: www.mciclt.com
MCI CLT (Netherlands) RO
WTC World Trade Center ● Prinses Margrietplantsoen 33
2595AM The Hague ● Netherlands
Phone: +49.173 367 35 57 ● Fax: +49 5862 309 79 24
E-Mail: nl@mciclt.eu ● Web: www.mciclt.com

More Related Content

What's hot

Automatic exchange of information (AEOI) - November 2016
Automatic exchange of information (AEOI) - November 2016Automatic exchange of information (AEOI) - November 2016
Automatic exchange of information (AEOI) - November 2016
nztaxpolicy
 
Private Equity Tax Planning in 2010
Private Equity Tax Planning in 2010Private Equity Tax Planning in 2010
Private Equity Tax Planning in 2010
BDO
 
Using luxembourg in international structures
Using luxembourg in international structuresUsing luxembourg in international structures
Using luxembourg in international structures
BDO Ukraine LLC
 
Tax haven countries for offshore company formation
Tax haven countries for offshore company formationTax haven countries for offshore company formation
Tax haven countries for offshore company formation
Steven smith
 
Automatic exchange of financial account information
Automatic exchange of financial account informationAutomatic exchange of financial account information
Automatic exchange of financial account information
nztaxpolicy
 
Automatic exchange of financial account information - March 2016
Automatic exchange of financial account information - March 2016Automatic exchange of financial account information - March 2016
Automatic exchange of financial account information - March 2016
nztaxpolicy
 
Global business sector in mauritius
Global business sector in mauritiusGlobal business sector in mauritius
Global business sector in mauritius
Kavee Rajiah
 
Reporting Issues in Islamic Financial Institutions, Nissar Yatoo
Reporting Issues in Islamic Financial Institutions, Nissar YatooReporting Issues in Islamic Financial Institutions, Nissar Yatoo
Reporting Issues in Islamic Financial Institutions, Nissar Yatoo
The i-Capital Africa Institute
 
Global Business Mauritius Presentation Draft
Global Business Mauritius Presentation  DraftGlobal Business Mauritius Presentation  Draft
Global Business Mauritius Presentation Draft
ramesh77uom
 
Malta Investment Funds - Hedge | Mutual Funds- Essential Facts Tables-Acumum-...
Malta Investment Funds - Hedge | Mutual Funds- Essential Facts Tables-Acumum-...Malta Investment Funds - Hedge | Mutual Funds- Essential Facts Tables-Acumum-...
Malta Investment Funds - Hedge | Mutual Funds- Essential Facts Tables-Acumum-...
Acumum - Legal & Advisory
 
Eversheds CREATE Workshop #1: Real estate holding structures
Eversheds CREATE Workshop #1: Real estate holding structuresEversheds CREATE Workshop #1: Real estate holding structures
Eversheds CREATE Workshop #1: Real estate holding structures
Eversheds Sutherland
 
ICC GROUP
ICC GROUPICC GROUP
2019 Election| Corporate Tax and Business Competitiveness| Canada| June 2019
2019 Election| Corporate Tax and Business Competitiveness| Canada| June 20192019 Election| Corporate Tax and Business Competitiveness| Canada| June 2019
2019 Election| Corporate Tax and Business Competitiveness| Canada| June 2019
paul young cpa, cga
 
UCITS - Why Ireland Doc
UCITS - Why Ireland DocUCITS - Why Ireland Doc
UCITS - Why Ireland Doc
Omer_Khan
 
World offshore centers. How It works
World offshore centers. How It worksWorld offshore centers. How It works
World offshore centers. How It works
Ruhull
 
Offshore Investment Journal- Feature Article- THE UAE AS A TRUE GLOBAL FINANC...
Offshore Investment Journal- Feature Article- THE UAE AS A TRUE GLOBAL FINANC...Offshore Investment Journal- Feature Article- THE UAE AS A TRUE GLOBAL FINANC...
Offshore Investment Journal- Feature Article- THE UAE AS A TRUE GLOBAL FINANC...
Jaswinder (Jas) Sekhon
 
Investment Funds Regime in Guernsey 21 July 2016
Investment Funds Regime in Guernsey 21 July 2016Investment Funds Regime in Guernsey 21 July 2016
Investment Funds Regime in Guernsey 21 July 2016
Institute of Chartered Secretaries and Administrators
 
Slides 13th Private Equity Forum Luxembourg 5 June 2014
Slides 13th Private Equity Forum Luxembourg 5 June 2014Slides 13th Private Equity Forum Luxembourg 5 June 2014
Slides 13th Private Equity Forum Luxembourg 5 June 2014
Thorsten Lederer 托尔斯滕
 
Capital Gains Taxation and Impact on Acquisition Financing in Emerging Market...
Capital Gains Taxation and Impact on Acquisition Financing in Emerging Market...Capital Gains Taxation and Impact on Acquisition Financing in Emerging Market...
Capital Gains Taxation and Impact on Acquisition Financing in Emerging Market...
The International Business Structuring Association
 
Future of treaty formed holding companies and preferential
Future of treaty formed holding companies and preferential Future of treaty formed holding companies and preferential
Future of treaty formed holding companies and preferential
Harm J. Oortwijn
 

What's hot (20)

Automatic exchange of information (AEOI) - November 2016
Automatic exchange of information (AEOI) - November 2016Automatic exchange of information (AEOI) - November 2016
Automatic exchange of information (AEOI) - November 2016
 
Private Equity Tax Planning in 2010
Private Equity Tax Planning in 2010Private Equity Tax Planning in 2010
Private Equity Tax Planning in 2010
 
Using luxembourg in international structures
Using luxembourg in international structuresUsing luxembourg in international structures
Using luxembourg in international structures
 
Tax haven countries for offshore company formation
Tax haven countries for offshore company formationTax haven countries for offshore company formation
Tax haven countries for offshore company formation
 
Automatic exchange of financial account information
Automatic exchange of financial account informationAutomatic exchange of financial account information
Automatic exchange of financial account information
 
Automatic exchange of financial account information - March 2016
Automatic exchange of financial account information - March 2016Automatic exchange of financial account information - March 2016
Automatic exchange of financial account information - March 2016
 
Global business sector in mauritius
Global business sector in mauritiusGlobal business sector in mauritius
Global business sector in mauritius
 
Reporting Issues in Islamic Financial Institutions, Nissar Yatoo
Reporting Issues in Islamic Financial Institutions, Nissar YatooReporting Issues in Islamic Financial Institutions, Nissar Yatoo
Reporting Issues in Islamic Financial Institutions, Nissar Yatoo
 
Global Business Mauritius Presentation Draft
Global Business Mauritius Presentation  DraftGlobal Business Mauritius Presentation  Draft
Global Business Mauritius Presentation Draft
 
Malta Investment Funds - Hedge | Mutual Funds- Essential Facts Tables-Acumum-...
Malta Investment Funds - Hedge | Mutual Funds- Essential Facts Tables-Acumum-...Malta Investment Funds - Hedge | Mutual Funds- Essential Facts Tables-Acumum-...
Malta Investment Funds - Hedge | Mutual Funds- Essential Facts Tables-Acumum-...
 
Eversheds CREATE Workshop #1: Real estate holding structures
Eversheds CREATE Workshop #1: Real estate holding structuresEversheds CREATE Workshop #1: Real estate holding structures
Eversheds CREATE Workshop #1: Real estate holding structures
 
ICC GROUP
ICC GROUPICC GROUP
ICC GROUP
 
2019 Election| Corporate Tax and Business Competitiveness| Canada| June 2019
2019 Election| Corporate Tax and Business Competitiveness| Canada| June 20192019 Election| Corporate Tax and Business Competitiveness| Canada| June 2019
2019 Election| Corporate Tax and Business Competitiveness| Canada| June 2019
 
UCITS - Why Ireland Doc
UCITS - Why Ireland DocUCITS - Why Ireland Doc
UCITS - Why Ireland Doc
 
World offshore centers. How It works
World offshore centers. How It worksWorld offshore centers. How It works
World offshore centers. How It works
 
Offshore Investment Journal- Feature Article- THE UAE AS A TRUE GLOBAL FINANC...
Offshore Investment Journal- Feature Article- THE UAE AS A TRUE GLOBAL FINANC...Offshore Investment Journal- Feature Article- THE UAE AS A TRUE GLOBAL FINANC...
Offshore Investment Journal- Feature Article- THE UAE AS A TRUE GLOBAL FINANC...
 
Investment Funds Regime in Guernsey 21 July 2016
Investment Funds Regime in Guernsey 21 July 2016Investment Funds Regime in Guernsey 21 July 2016
Investment Funds Regime in Guernsey 21 July 2016
 
Slides 13th Private Equity Forum Luxembourg 5 June 2014
Slides 13th Private Equity Forum Luxembourg 5 June 2014Slides 13th Private Equity Forum Luxembourg 5 June 2014
Slides 13th Private Equity Forum Luxembourg 5 June 2014
 
Capital Gains Taxation and Impact on Acquisition Financing in Emerging Market...
Capital Gains Taxation and Impact on Acquisition Financing in Emerging Market...Capital Gains Taxation and Impact on Acquisition Financing in Emerging Market...
Capital Gains Taxation and Impact on Acquisition Financing in Emerging Market...
 
Future of treaty formed holding companies and preferential
Future of treaty formed holding companies and preferential Future of treaty formed holding companies and preferential
Future of treaty formed holding companies and preferential
 

Similar to MCI CLT Dutch Holding Structures EN (2021.03)

Tax opportunities - investing through the Netherlands
Tax opportunities -  investing through the NetherlandsTax opportunities -  investing through the Netherlands
Tax opportunities - investing through the Netherlands
Guido Van Asperen
 
Deloitte its brochure2011
Deloitte its brochure2011Deloitte its brochure2011
Deloitte its brochure2011
davidwijaya1986
 
Dubai international-tax-aspects
Dubai international-tax-aspectsDubai international-tax-aspects
Dubai international-tax-aspects
Oneworld Mideast
 
Toronto marc derks amsterdam
Toronto marc derks amsterdamToronto marc derks amsterdam
Toronto marc derks amsterdam
Marc Derks
 
7 ways of avoiding property tax legally
7 ways of avoiding property tax   legally7 ways of avoiding property tax   legally
7 ways of avoiding property tax legally
Nicholas (Nick) Charles
 
Contractual Considerations by Kylie van Heerden
Contractual Considerations by Kylie van HeerdenContractual Considerations by Kylie van Heerden
Contractual Considerations by Kylie van Heerden
Locus Research
 
7 ways of avoiding property tax legally
7 ways of avoiding property tax legally7 ways of avoiding property tax legally
7 ways of avoiding property tax legally
TNicholasCharles
 
Double Tax Treaties: Asia & Europe
Double Tax Treaties: Asia & EuropeDouble Tax Treaties: Asia & Europe
Double Tax Treaties: Asia & Europe
The International Business Structuring Association
 
Offshore companies dubai
Offshore companies dubaiOffshore companies dubai
Offshore companies dubai
HLB Hamt
 
Setting up a business in the UK (Ian Phipps)
Setting up a business in the UK (Ian Phipps)Setting up a business in the UK (Ian Phipps)
Setting up a business in the UK (Ian Phipps)
innovationnorwaylondon
 
WHT Service
WHT ServiceWHT Service
WHT Service
Rivka Moore
 
Hill Rogers - Tax Risks and Opportunities in the NFP Sector
Hill Rogers - Tax Risks and Opportunities in the NFP SectorHill Rogers - Tax Risks and Opportunities in the NFP Sector
Hill Rogers - Tax Risks and Opportunities in the NFP Sector
Hill Rogers
 
Dutch tax budget 2012 cooperative and substantial interest
Dutch tax budget 2012 cooperative and substantial interestDutch tax budget 2012 cooperative and substantial interest
Dutch tax budget 2012 cooperative and substantial interest
Paul van den Tillaart
 
Cleantech - Solving Legal Challenges of Finnish Cleantech-sector Companies Gr...
Cleantech - Solving Legal Challenges of Finnish Cleantech-sector Companies Gr...Cleantech - Solving Legal Challenges of Finnish Cleantech-sector Companies Gr...
Cleantech - Solving Legal Challenges of Finnish Cleantech-sector Companies Gr...
Jan Lindberg
 
R&D Tax Credits Guide by @GrantTree
R&D Tax Credits Guide by @GrantTreeR&D Tax Credits Guide by @GrantTree
R&D Tax Credits Guide by @GrantTree
GrantTree
 
DMIEXPO - Arosal - Where To Hold Your IP: The A To Z Guide For Digital Marketers
DMIEXPO - Arosal - Where To Hold Your IP: The A To Z Guide For Digital MarketersDMIEXPO - Arosal - Where To Hold Your IP: The A To Z Guide For Digital Marketers
DMIEXPO - Arosal - Where To Hold Your IP: The A To Z Guide For Digital Marketers
Morning Dough
 
How should you design your start up company
How should you design your start up companyHow should you design your start up company
How should you design your start up company
altsmart
 
Net investment income tax
Net investment income taxNet investment income tax
Net investment income tax
Grant Thornton LLP
 
Creative Financing and Tax Options for Small Businesses
Creative Financing and Tax Options for Small BusinessesCreative Financing and Tax Options for Small Businesses
Creative Financing and Tax Options for Small Businesses
Insero & Co. CPAs, LLP
 
Fisconti Tax Consulting Netherlands - New Transfer Pricing Documentation requ...
Fisconti Tax Consulting Netherlands - New Transfer Pricing Documentation requ...Fisconti Tax Consulting Netherlands - New Transfer Pricing Documentation requ...
Fisconti Tax Consulting Netherlands - New Transfer Pricing Documentation requ...
Guido Van Asperen
 

Similar to MCI CLT Dutch Holding Structures EN (2021.03) (20)

Tax opportunities - investing through the Netherlands
Tax opportunities -  investing through the NetherlandsTax opportunities -  investing through the Netherlands
Tax opportunities - investing through the Netherlands
 
Deloitte its brochure2011
Deloitte its brochure2011Deloitte its brochure2011
Deloitte its brochure2011
 
Dubai international-tax-aspects
Dubai international-tax-aspectsDubai international-tax-aspects
Dubai international-tax-aspects
 
Toronto marc derks amsterdam
Toronto marc derks amsterdamToronto marc derks amsterdam
Toronto marc derks amsterdam
 
7 ways of avoiding property tax legally
7 ways of avoiding property tax   legally7 ways of avoiding property tax   legally
7 ways of avoiding property tax legally
 
Contractual Considerations by Kylie van Heerden
Contractual Considerations by Kylie van HeerdenContractual Considerations by Kylie van Heerden
Contractual Considerations by Kylie van Heerden
 
7 ways of avoiding property tax legally
7 ways of avoiding property tax legally7 ways of avoiding property tax legally
7 ways of avoiding property tax legally
 
Double Tax Treaties: Asia & Europe
Double Tax Treaties: Asia & EuropeDouble Tax Treaties: Asia & Europe
Double Tax Treaties: Asia & Europe
 
Offshore companies dubai
Offshore companies dubaiOffshore companies dubai
Offshore companies dubai
 
Setting up a business in the UK (Ian Phipps)
Setting up a business in the UK (Ian Phipps)Setting up a business in the UK (Ian Phipps)
Setting up a business in the UK (Ian Phipps)
 
WHT Service
WHT ServiceWHT Service
WHT Service
 
Hill Rogers - Tax Risks and Opportunities in the NFP Sector
Hill Rogers - Tax Risks and Opportunities in the NFP SectorHill Rogers - Tax Risks and Opportunities in the NFP Sector
Hill Rogers - Tax Risks and Opportunities in the NFP Sector
 
Dutch tax budget 2012 cooperative and substantial interest
Dutch tax budget 2012 cooperative and substantial interestDutch tax budget 2012 cooperative and substantial interest
Dutch tax budget 2012 cooperative and substantial interest
 
Cleantech - Solving Legal Challenges of Finnish Cleantech-sector Companies Gr...
Cleantech - Solving Legal Challenges of Finnish Cleantech-sector Companies Gr...Cleantech - Solving Legal Challenges of Finnish Cleantech-sector Companies Gr...
Cleantech - Solving Legal Challenges of Finnish Cleantech-sector Companies Gr...
 
R&D Tax Credits Guide by @GrantTree
R&D Tax Credits Guide by @GrantTreeR&D Tax Credits Guide by @GrantTree
R&D Tax Credits Guide by @GrantTree
 
DMIEXPO - Arosal - Where To Hold Your IP: The A To Z Guide For Digital Marketers
DMIEXPO - Arosal - Where To Hold Your IP: The A To Z Guide For Digital MarketersDMIEXPO - Arosal - Where To Hold Your IP: The A To Z Guide For Digital Marketers
DMIEXPO - Arosal - Where To Hold Your IP: The A To Z Guide For Digital Marketers
 
How should you design your start up company
How should you design your start up companyHow should you design your start up company
How should you design your start up company
 
Net investment income tax
Net investment income taxNet investment income tax
Net investment income tax
 
Creative Financing and Tax Options for Small Businesses
Creative Financing and Tax Options for Small BusinessesCreative Financing and Tax Options for Small Businesses
Creative Financing and Tax Options for Small Businesses
 
Fisconti Tax Consulting Netherlands - New Transfer Pricing Documentation requ...
Fisconti Tax Consulting Netherlands - New Transfer Pricing Documentation requ...Fisconti Tax Consulting Netherlands - New Transfer Pricing Documentation requ...
Fisconti Tax Consulting Netherlands - New Transfer Pricing Documentation requ...
 

More from Martin Kraeter

ADDED - Foreign Ownership Positive List (20.05.2021)
ADDED - Foreign Ownership Positive List (20.05.2021)ADDED - Foreign Ownership Positive List (20.05.2021)
ADDED - Foreign Ownership Positive List (20.05.2021)
Martin Kraeter
 
MCI CLT Goldenes Visa UAE Deutsch (2021.04)
MCI CLT Goldenes Visa UAE Deutsch (2021.04)MCI CLT Goldenes Visa UAE Deutsch (2021.04)
MCI CLT Goldenes Visa UAE Deutsch (2021.04)
Martin Kraeter
 
MCI CLT Golden Visa UAE English (2021.04)
MCI CLT Golden Visa UAE English (2021.04)MCI CLT Golden Visa UAE English (2021.04)
MCI CLT Golden Visa UAE English (2021.04)
Martin Kraeter
 
MCI CLT Niederländische Holdingstrukturen DE (2021.03)
MCI CLT Niederländische Holdingstrukturen DE (2021.03)MCI CLT Niederländische Holdingstrukturen DE (2021.03)
MCI CLT Niederländische Holdingstrukturen DE (2021.03)
Martin Kraeter
 
MCI CLT ValueUP Deutsch (2021.03)
MCI CLT ValueUP Deutsch (2021.03)MCI CLT ValueUP Deutsch (2021.03)
MCI CLT ValueUP Deutsch (2021.03)
Martin Kraeter
 
MCI CLT ValueUP English (2021.03)
MCI CLT ValueUP English (2021.03)MCI CLT ValueUP English (2021.03)
MCI CLT ValueUP English (2021.03)
Martin Kraeter
 

More from Martin Kraeter (6)

ADDED - Foreign Ownership Positive List (20.05.2021)
ADDED - Foreign Ownership Positive List (20.05.2021)ADDED - Foreign Ownership Positive List (20.05.2021)
ADDED - Foreign Ownership Positive List (20.05.2021)
 
MCI CLT Goldenes Visa UAE Deutsch (2021.04)
MCI CLT Goldenes Visa UAE Deutsch (2021.04)MCI CLT Goldenes Visa UAE Deutsch (2021.04)
MCI CLT Goldenes Visa UAE Deutsch (2021.04)
 
MCI CLT Golden Visa UAE English (2021.04)
MCI CLT Golden Visa UAE English (2021.04)MCI CLT Golden Visa UAE English (2021.04)
MCI CLT Golden Visa UAE English (2021.04)
 
MCI CLT Niederländische Holdingstrukturen DE (2021.03)
MCI CLT Niederländische Holdingstrukturen DE (2021.03)MCI CLT Niederländische Holdingstrukturen DE (2021.03)
MCI CLT Niederländische Holdingstrukturen DE (2021.03)
 
MCI CLT ValueUP Deutsch (2021.03)
MCI CLT ValueUP Deutsch (2021.03)MCI CLT ValueUP Deutsch (2021.03)
MCI CLT ValueUP Deutsch (2021.03)
 
MCI CLT ValueUP English (2021.03)
MCI CLT ValueUP English (2021.03)MCI CLT ValueUP English (2021.03)
MCI CLT ValueUP English (2021.03)
 

Recently uploaded

Strategies for Adoption of SDGs in organizations
Strategies for Adoption of SDGs in organizationsStrategies for Adoption of SDGs in organizations
Strategies for Adoption of SDGs in organizations
Amgad Morgan
 
@ℂall Lucknow @Girls Chinhat 08630512678
@ℂall Lucknow  @Girls Chinhat 08630512678 @ℂall Lucknow  @Girls Chinhat 08630512678
@ℂall Lucknow @Girls Chinhat 08630512678
veenita788
 
@ℂall Lucknow @Girls Fazullaganj 08630512678 @Girls Service @ℂall
@ℂall Lucknow @Girls Fazullaganj 08630512678  @Girls Service @ℂall@ℂall Lucknow @Girls Fazullaganj 08630512678  @Girls Service @ℂall
@ℂall Lucknow @Girls Fazullaganj 08630512678 @Girls Service @ℂall
veenita788
 
UMiami biyezheng degree offer diploma Transcript
UMiami biyezheng degree offer diploma TranscriptUMiami biyezheng degree offer diploma Transcript
UMiami biyezheng degree offer diploma Transcript
xmevus
 
Girls Call Mysore 000XX00000 Provide Best And Top Girl Service And No1 in City
Girls Call Mysore 000XX00000 Provide Best And Top Girl Service And No1 in CityGirls Call Mysore 000XX00000 Provide Best And Top Girl Service And No1 in City
Girls Call Mysore 000XX00000 Provide Best And Top Girl Service And No1 in City
rawankhanlove256
 
UCI biyezheng degree offer diploma Transcript
UCI biyezheng degree offer diploma TranscriptUCI biyezheng degree offer diploma Transcript
UCI biyezheng degree offer diploma Transcript
xmevus
 
Risks & Business Risks Reduce - investment.pdf
Risks & Business Risks Reduce  - investment.pdfRisks & Business Risks Reduce  - investment.pdf
Risks & Business Risks Reduce - investment.pdf
Home
 
TEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITY
TEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITYTEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITY
TEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITY
AaSs197122
 
the sparks foundation JOB READINESS- how to be job ready. task 2
the sparks foundation JOB READINESS- how to be job ready. task 2the sparks foundation JOB READINESS- how to be job ready. task 2
the sparks foundation JOB READINESS- how to be job ready. task 2
Rashi427200
 
calcaneal fracture seminar by dr vishu.pptx
calcaneal fracture seminar by dr vishu.pptxcalcaneal fracture seminar by dr vishu.pptx
calcaneal fracture seminar by dr vishu.pptx
Skmch
 
HERO.pdf hero company working cap management project
HERO.pdf hero company working cap management projectHERO.pdf hero company working cap management project
HERO.pdf hero company working cap management project
SambalpurTokaSatyaji
 
Varanasi Girls Call Varanasi 0X0000000X Payment On Delevery Cash Hot Premium ...
Varanasi Girls Call Varanasi 0X0000000X Payment On Delevery Cash Hot Premium ...Varanasi Girls Call Varanasi 0X0000000X Payment On Delevery Cash Hot Premium ...
Varanasi Girls Call Varanasi 0X0000000X Payment On Delevery Cash Hot Premium ...
parichopra4
 
Cornell biyezheng degree offer diploma Transcript
Cornell biyezheng degree offer diploma TranscriptCornell biyezheng degree offer diploma Transcript
Cornell biyezheng degree offer diploma Transcript
xmevus
 
Marketing Articles and ppt on how to do marketing ..Challenges faced during M...
Marketing Articles and ppt on how to do marketing ..Challenges faced during M...Marketing Articles and ppt on how to do marketing ..Challenges faced during M...
Marketing Articles and ppt on how to do marketing ..Challenges faced during M...
ankitamarik05
 
Haldia Dock Complex - A Gateway To India's East Coast
Haldia Dock Complex - A Gateway To India's East CoastHaldia Dock Complex - A Gateway To India's East Coast
Haldia Dock Complex - A Gateway To India's East Coast
Amity University Kolkata
 
A study on drug utilization evaluation of bronchodilators using DDD method
A study on drug utilization evaluation of bronchodilators using DDD methodA study on drug utilization evaluation of bronchodilators using DDD method
A study on drug utilization evaluation of bronchodilators using DDD method
Dr. Chihiro
 
2024-07-07 Transformed 06 (shared slides).pptx
2024-07-07 Transformed 06 (shared slides).pptx2024-07-07 Transformed 06 (shared slides).pptx
2024-07-07 Transformed 06 (shared slides).pptx
Dale Wells
 
Mysore Girls Call Mysore 0X0000000X Payment On Delevery Cash Hot Premium Genu...
Mysore Girls Call Mysore 0X0000000X Payment On Delevery Cash Hot Premium Genu...Mysore Girls Call Mysore 0X0000000X Payment On Delevery Cash Hot Premium Genu...
Mysore Girls Call Mysore 0X0000000X Payment On Delevery Cash Hot Premium Genu...
seenaoberoi
 
UC Davis biyezheng degree offer diploma Transcript
UC Davis biyezheng degree offer diploma TranscriptUC Davis biyezheng degree offer diploma Transcript
UC Davis biyezheng degree offer diploma Transcript
xmevus
 
Chandigarh Girls Call Chandigarh 0X0000000X Provide Best And Top Girl Service...
Chandigarh Girls Call Chandigarh 0X0000000X Provide Best And Top Girl Service...Chandigarh Girls Call Chandigarh 0X0000000X Provide Best And Top Girl Service...
Chandigarh Girls Call Chandigarh 0X0000000X Provide Best And Top Girl Service...
kishanaaani
 

Recently uploaded (20)

Strategies for Adoption of SDGs in organizations
Strategies for Adoption of SDGs in organizationsStrategies for Adoption of SDGs in organizations
Strategies for Adoption of SDGs in organizations
 
@ℂall Lucknow @Girls Chinhat 08630512678
@ℂall Lucknow  @Girls Chinhat 08630512678 @ℂall Lucknow  @Girls Chinhat 08630512678
@ℂall Lucknow @Girls Chinhat 08630512678
 
@ℂall Lucknow @Girls Fazullaganj 08630512678 @Girls Service @ℂall
@ℂall Lucknow @Girls Fazullaganj 08630512678  @Girls Service @ℂall@ℂall Lucknow @Girls Fazullaganj 08630512678  @Girls Service @ℂall
@ℂall Lucknow @Girls Fazullaganj 08630512678 @Girls Service @ℂall
 
UMiami biyezheng degree offer diploma Transcript
UMiami biyezheng degree offer diploma TranscriptUMiami biyezheng degree offer diploma Transcript
UMiami biyezheng degree offer diploma Transcript
 
Girls Call Mysore 000XX00000 Provide Best And Top Girl Service And No1 in City
Girls Call Mysore 000XX00000 Provide Best And Top Girl Service And No1 in CityGirls Call Mysore 000XX00000 Provide Best And Top Girl Service And No1 in City
Girls Call Mysore 000XX00000 Provide Best And Top Girl Service And No1 in City
 
UCI biyezheng degree offer diploma Transcript
UCI biyezheng degree offer diploma TranscriptUCI biyezheng degree offer diploma Transcript
UCI biyezheng degree offer diploma Transcript
 
Risks & Business Risks Reduce - investment.pdf
Risks & Business Risks Reduce  - investment.pdfRisks & Business Risks Reduce  - investment.pdf
Risks & Business Risks Reduce - investment.pdf
 
TEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITY
TEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITYTEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITY
TEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITY
 
the sparks foundation JOB READINESS- how to be job ready. task 2
the sparks foundation JOB READINESS- how to be job ready. task 2the sparks foundation JOB READINESS- how to be job ready. task 2
the sparks foundation JOB READINESS- how to be job ready. task 2
 
calcaneal fracture seminar by dr vishu.pptx
calcaneal fracture seminar by dr vishu.pptxcalcaneal fracture seminar by dr vishu.pptx
calcaneal fracture seminar by dr vishu.pptx
 
HERO.pdf hero company working cap management project
HERO.pdf hero company working cap management projectHERO.pdf hero company working cap management project
HERO.pdf hero company working cap management project
 
Varanasi Girls Call Varanasi 0X0000000X Payment On Delevery Cash Hot Premium ...
Varanasi Girls Call Varanasi 0X0000000X Payment On Delevery Cash Hot Premium ...Varanasi Girls Call Varanasi 0X0000000X Payment On Delevery Cash Hot Premium ...
Varanasi Girls Call Varanasi 0X0000000X Payment On Delevery Cash Hot Premium ...
 
Cornell biyezheng degree offer diploma Transcript
Cornell biyezheng degree offer diploma TranscriptCornell biyezheng degree offer diploma Transcript
Cornell biyezheng degree offer diploma Transcript
 
Marketing Articles and ppt on how to do marketing ..Challenges faced during M...
Marketing Articles and ppt on how to do marketing ..Challenges faced during M...Marketing Articles and ppt on how to do marketing ..Challenges faced during M...
Marketing Articles and ppt on how to do marketing ..Challenges faced during M...
 
Haldia Dock Complex - A Gateway To India's East Coast
Haldia Dock Complex - A Gateway To India's East CoastHaldia Dock Complex - A Gateway To India's East Coast
Haldia Dock Complex - A Gateway To India's East Coast
 
A study on drug utilization evaluation of bronchodilators using DDD method
A study on drug utilization evaluation of bronchodilators using DDD methodA study on drug utilization evaluation of bronchodilators using DDD method
A study on drug utilization evaluation of bronchodilators using DDD method
 
2024-07-07 Transformed 06 (shared slides).pptx
2024-07-07 Transformed 06 (shared slides).pptx2024-07-07 Transformed 06 (shared slides).pptx
2024-07-07 Transformed 06 (shared slides).pptx
 
Mysore Girls Call Mysore 0X0000000X Payment On Delevery Cash Hot Premium Genu...
Mysore Girls Call Mysore 0X0000000X Payment On Delevery Cash Hot Premium Genu...Mysore Girls Call Mysore 0X0000000X Payment On Delevery Cash Hot Premium Genu...
Mysore Girls Call Mysore 0X0000000X Payment On Delevery Cash Hot Premium Genu...
 
UC Davis biyezheng degree offer diploma Transcript
UC Davis biyezheng degree offer diploma TranscriptUC Davis biyezheng degree offer diploma Transcript
UC Davis biyezheng degree offer diploma Transcript
 
Chandigarh Girls Call Chandigarh 0X0000000X Provide Best And Top Girl Service...
Chandigarh Girls Call Chandigarh 0X0000000X Provide Best And Top Girl Service...Chandigarh Girls Call Chandigarh 0X0000000X Provide Best And Top Girl Service...
Chandigarh Girls Call Chandigarh 0X0000000X Provide Best And Top Girl Service...
 

MCI CLT Dutch Holding Structures EN (2021.03)

  • 1. Dutch Holding Structures Phillip Kraeter Chief Strategy Officer (The Hague) March 2021
  • 2. Introducing MCI CLT • MCI CLT is an international Law, Tax, Compliance & Management Corporation, established as Intelligent Corporate Service Provider (Counselling, Treasury, Banking & Finance, CFO), Asset Manager, Custodian and Facilitator. • Our focus is on Intelligent Corporate Services, Custody, Assets & Holdings Management tailored to our Client’s individual Taxation and Legislation Requirements and Matters. • MCI CLT Netherlands is highly specialized Holistic Partner related to the domestic and international utilization of Netherland’s Entity, Holding and Foundation Legislation. Who are we? Advisory & Service Portfolio MCI CLT Netherlands, The Hague
  • 3. Introduction to Holdings • Purposes & Motivation for a Holding: Ownership Bundling, Risk Optimization, Capital Protection, Tax Planning, Structuring, Exit Route for Profits, . . . • Classic Jurisdictions: Seychelles, Mauritius, Cyprus, Hong Kong, United Arab Emirates What is a Holding? Which Jurisdictions are in demand?
  • 4. Dutch Holding Introduction • Developed Infrastructure for Stability & Longevity • The Dutch Corporate & Tax Laws are historically flexible • Less than common Complications elsewhere • Low Cost of Incorporation & Annual Maintenance (Structural Cost) • Straightforward Procedures • Rich Tax Network as part of the EU: 90+ Double Taxation Avoidance Treaties What is attractive about it? How is it possible?
  • 5. Substance Requirements • Almost no Substance Requirements • Management Services  • Registered Office / Address  • Does not need Employees • Can be serviced by a Trust Company What are the present Substance Requirements for a DH?
  • 6. Dutch Participation Exemption I • Tax Exemption on Revenues / Earnings from Dividends, Capital Gains and Royalties if they arise from a (qualified) Subsidiary • Holding (parent) Requirements to qualify: • Assets in DH cannot exceed 50% of Passive Assets – Asset Base must always be enriched with Active Assets • DH must generate higher ROI than Profits from Passive Asset Management What is the Dutch Deelnemingsvrijstelling? Which conditions must be met for it to activate?
  • 7. Dutch Participation Exemption II • If the DH qualifies, the DH Subsidiary must further qualify, by meeting the Criteria: • Being owned by a Dutch Taxpayer (like the DH) at least by 5% of paid-in Nominal Shares • If Activities of Subsidiary classify as ‘Passive Investment Activities’, 10% Profits Tax applies • Cannot be a ‘Fiscal Investment Fund’ • If all above holds true, DH enjoys Tax Exemption for the aforementioned Income Streams • Corporate Taxation of regular Profits remains 25%, if Profits exceed EUR 245,000 (15% if below) • DH represents a layer of Protection between the Individual and the Business Activity (Limited Liability) Restrictions applicable to Subsidiaries
  • 8. Activities & Benefits of a DH I • Wide Variety of Activities possible • May act as Regional HQ, allowing for Collection of Dividends, Receiving Interest or Royalties from Subsidiaries (in one company) • Can act as Financial Service Company • Multitude of Benefits beyond previously mentioned Tax Exemption • A clear seperation between legal and tax related advantages exists Possible Business Activites of a DH Benefits of a DH
  • 9. 1 Excellent infrastructure 2 Little Substance requirements 3 No foreign currency exchange restriction 4 Flexible corporate law 5 Advance tax ruling 6 5.0% withholding tax rate on dividends, interests, royalties 7 Tax treaty benefits with over 90 countries 8 Low incorporation costs & running costs Benefits of DH I
  • 10. Activities & Benefits of a DH II Legal Advantages include: • Activities & Assets kept separate, improving Liability Situation • Provides Flexibility upon Sale of Assets • Operating Companies kept light weight for Liability Reasons (distribution not taxed) Tax Advantages include: • Significantly lower Tax Burden, down to 5% effective Rate • Enables Reinvestment of Profits into Corporate Structure(s)
  • 11. Tax Treaty Network • Tax Treaties with more than 90 Countries, exceeding European Borders • Helps to avoid Issues to do with Dual- Residency, Permanent Establishment, Double Taxation or others • Allows for Reduction of Withholding Tax with Dividend Payments to Investor’s Home Country How extensive is NL’s Tax Treaty Network? Which Benefits does this entail?
  • 12. EU Withholding Tax Exemption • A 0% withholding Tax Rate for any qualifying Corporate Dividends paid within EU exists if: • Shareholder is a Corporation, qualifying as Tax Resident of other EU or EER States* • Shareholder (corporate) would also qualify for Dutch Participation Exemption • Shareholder is not a Tax-Exempt Portfolio Investment Fund • Shareholder has no Dual Residency Status in Countries outside of EU/EER • Qualifies as beneficial owner of shares • No Tax Treaty with Anti-Abuse Clause present • Possible Double Layer Holding Structures attractive, even for non-EU resident Investors • E.g. Double-Irish with a Dutch Sandwich (Google) What is the EU Withholding Tax Exemption? What is needed for it to apply? *Not Liechtenstein
  • 13. Dutch Finance Company: Alternative I • Main type of DFC: Dutch Group Finance Company, DGFC • Must own an Office and own Bank Account with an equity at risk of at least 1% of outstanding Loans (or exced EUR 2 Million, if less than 1%) • Resistant to foreign Anti-Abuse Provisions • May provide Loans to Subsidiaries, Shareholders and Group Companies • May function as Holding or even Operating Firm • 75-80% of Net Interest Income is excluded from Taxation Base • Must comply with Dutch Tax Filing and Registration Requirements • Increased scrutiny: Means DFC must file Annual Corporate Income Tax Return, obtain Tax Residency Status, manage VAT Returns and manage Dividend Withholding Tax What is a DFC? Why is DFC an attractive alternative Holding Structure? What are some Drawbacks?
  • 14. Dutch Cooperative: Alternative II • DC can receive Dividends without incurring Dividend Withholding Tax in the origin Country of the Subsidiary • May be eligible for DPE, despite being subject to Dutch Corporate Income Tax • Uses ‘Members’, not ‘Shareholders’ – DC must have at least 2 Members at Time of Incorporation • Limited Liability: Members can be treated like Shareholders, entitled to Profits of DC, but no Capital Dividend in Shares means: No Minimum Capital • Not a standard Legal Form, therefore maybe scrutinized by Authorities • To avoid this, a B.V. company could be the Intermediary between DC and Foreign Payment Company, making it a viable Option for Foreign Investors What makes a DC different? How does it fare against other types of Dutch Holding Structures?
  • 15. Dutch Stichting: Alternative III • Simply take a Foundation – comparable to a Traditional Trust, but: • No Shareholders / Members • Legally seen as its own Entity (Rights & Rules) • Used to separate and protect Private Assets • Stichting is its own UBO! • Distribution of Funds to be altruistic • Typically exempt from Corporate Income Tax • Must register with Trade Register & file Annual Reports (if active, passive = exempt) What is a Stichting? What is the Legal Status of a Stichting? What can it be useful for?
  • 16. Dutch STAK: Alternative IV • Foundation with add-on of Depositary Receipts (DR), adding an Administrative Element • Happens by interlodging a holding beneath it (in most cases a B.V.) • Voting and Economic Rights are seperated • Allows Asset Protection • Allows Takeover Protection • Voting held by STAK, Beneficial Ownership is held by Shareholders which hold the DRs • Typically, not subject to Dutch Corporate Income Tax and Withholding Taxes as it is not an ‘Acting Business' • Taxed at level of Participants, in Country of Residence • STAK must also be registered with Trade Register and prepare Annual Returns (may not need to show) What is the Administrative add-on of the STAK? Why can it be a Viable Solution?
  • 17. Solution Model: Hybrid Holding • On a B.V. (or N.V.) as Holding for the Business Operations, a Foundation with STAK Feature will be “topped up” as its Owner • The STAK Administration issues the DR’s to the UBOs • UBOs: • Individuals if DTTA Status is green • IBC if DTTA Status is orange or red • The Withdrawal Taxation Scenario can always differ between: • NL and the Jurisdiction of the Individual UBO • NL and the Jurisdiction of the IBC • IBC Jurisdiction and the Jurisdiction of the IBC Individual UBO • These three Constellations always require case by case assessment under the related DTTA's (bi-lateral, tri-lateral, multi-lateral)
  • 18. MCI CLT: Where to find us MCI CLT (Asia) Limited 恆信法律稅務顧問(亞洲)有限公司 1/F CMA Building ● 64-66 Connaught Road Central ● Hong Kong ● Hong Kong S.A.R. Phone: +852 3652 7648 ● Fax: +852 3583 4834 E-Mail: hk@mciclt.asia ● Web: www.mciclt.com MCI CLT (China) RO R 25E, 25/F ● SangDa Ya Yuan HuaFa North Road ● Futian Technology District 518031 Shenzhen ● Guangdong ● P.R.C. Phone: +86 755 8252 2443 ● Fax: +852 3583 4834 E-Mail: sz@mciclt.asia ● Web: www.mciclt.com MCI CLT (Vietnam) RO 恆信法律稅務顧問(亞洲)有限公司 Số 6, Ngõ 127/38/14 ● Hào Nam Ô Chợ Dừa ● Đống Đa ● Hà Nội ● Việt Nam Phone: +84 86 522 91 50 ● Fax: +852 3583 4834 E-Mail: han@mciclt.asia ● Web: www.mciclt.com MCI CLT (ME) DWC-LLC ‫ش‬ ‫ﺳﻲ‬ ‫دﺑﻠﯾو‬ ‫دي‬ ‫اﻷوﺳط‬ ‫اﻟﺷرق‬ ‫ﺗﻲ‬ ‫أل‬ ‫ﺳﻲ‬ ‫آي‬ ‫ﺳﻲ‬ ‫أم‬ ‫ﺷرﻛﺔ‬ . ‫ذ‬ . ‫م‬ . ‫م‬ 1 / F Dubai World Central Headquarters P.O. Box 712570 ● Dubai South, Dubai ● U.A.E. Phone: +971 4 557 13 73 ● Fax: +971 4 432 84 48 E-Mail: dxb@mciclt.me ● Web: www.mciclt.com MCI CLT (Europe) Br. Weinbergsweg 3 D-29456 Hitzacker (Elbe) ● Germany Phone: +49 5862 309 79 23 ● Fax: +49 5862 309 79 24 E-Mail: de@mciclt.eu ● Web: www.mciclt.com MCI CLT (Netherlands) RO WTC World Trade Center ● Prinses Margrietplantsoen 33 2595AM The Hague ● Netherlands Phone: +49.173 367 35 57 ● Fax: +49 5862 309 79 24 E-Mail: nl@mciclt.eu ● Web: www.mciclt.com