Tax Consequences of Business Deduction in DGA Divorce in Rotterdam
In Rotterdam, the bustling port city full of entrepreneurs such as DGAs in logistics and maritime sectors, divorce has a major impact on the tax position due to the division of business assets. The Old Age Reserve (FOR) and mid-salary scheme in own management are directly affected upon equalization. Distribution of FOR results in box 1 taxation up to 52%, but Rotterdam DGAs can spread this via bank savings, ideal for local advisors along the Meuse.
The customary salary rule (article 12a Income Tax Act) obliges the ex-DGA to a minimum salary of €51,000, which changes upon division of Rotterdam BVs. Upon transfer of shares to the ex-partner, the realization principles of the Corporate Income Tax Act apply with cessation profit on latent reserves, particularly relevant for port companies with high valuations. Marital conditions with a settlement clause trigger box 3 taxation on deemed return, while the Rotterdam Entrepreneurs Association (ROV) warns of local real estate influences.
Strategies specific to Rotterdam: splitting the BV into operating company and holding minimizes tax, fitting the holding structures in the region. The Excessive Borrowing Act limits post-divorce debts to the DGA, crucial for family businesses in the port. Pension compensation remains exempt from wealth tax. Practical example from Rotterdam: conversion of FOR to a bank savings account for a shipping DGA saved 20% tax burden. Report changes timely to the Rotterdam Tax Office to avoid additional assessments, and combine with estate planning for children, tailored to local notaries in Kralingen or Kop van Zuid.