LIQUIDATION OF A DUTCH BV
Liquidation of a Dutch BV or closing down a Dutch company might be sometimes the best way when companies want to change strategy. Also, when it seems that doing business in the Netherlands is not profitable anymore, the best is to liquidate the Dutch company and cease to exist in the Netherlands (elimination).
Dissolving a Dutch BV may become burdensome and time consuming, in particular if the financial position of the company is not clear at the moment of liquidation or if there are more shareholders which are entitled to a stake in the company’s assets and/or liabilities. Further, the tax aspect of the liquidation of a Dutch company might be a complicating factor for many people.
Legal procedure – liquidation of a Dutch BV
The procedure for the liquidation of a Dutch BV is described in Dutch corporate law and specified in the company’s Articles of Association.
There are three possible procedures to dissolve a Dutch BV, namely:
- the standard procedure
- the so-called accelerated liquidation
- the so-called turbo liquidation.
The last procedures is the most easiest way to end the Dutch BV, if the company does not have any assets or liabilities at the moment of liquidation. In such case, there will be no process of winding-up and consequently no liquidators have to be appointed. The Management Board must file the liquidation of the company at the Dutch Trade Register of the Dutch Chamber of Commerce. The company’s books and records will be stored at the custodian for a period of seven years (obliged).
Dutch tax consequences – Dissolve Dutch BV
For Dutch tax purposes the dissolvement of a company means that the company has to settle its tax obligations. Therefore, the company has to file all corporate income tax returns, wage tax returns, VAT tax returns which are not filed yet, and pay its taxes due. The obligation to pay taxes does not stop at liquidation date. If after liquidation date taxable events take place, taxes will still have to be paid. For instance, if after the liquidation date VAT is paid or received on invoice, VAT still must be paid and refunds still have to be requested until everything is paid.
Also, the Dutch tax authorities and the Dutch trade association has be informed that the Dutch company has been liquidated. This must be done for corporate income tax, wage tax and VAT purposes.
What can we do for you regarding the liquidation of a Dutch BV?
- Advice on tax implications of a liquidation
- Coordinate the liquidation procedure
- Arrange the deregistration at the Dutch tax authorities / trade register
- Take care of the final tax compliance
Would you like more information about the liquidation of a Dutch BV?
Do you want more information or need assistance to liquidate or close down your Dutch company? Feel free to contact us through our contact form or call 085 00 30140 from within the Netherlands, or +31 (0)20 2615615 from abroad.
You can also visit the website of the Dutch tax authorities.