CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Netherlands Welcomes Court Ruling On Business Succession Tax Break

Netherlands Welcomes Court Ruling On Business Succession Tax Break

by Ulrika Lomas, Tax-News.com, Brussels

27 November 2013


The Supreme Court in the Netherlands has ruled in recent proceedings that the country's business succession rules, provided for in the inheritance and gift tax law, are not contrary to the principle of equality.

The proceedings were carried out within the framework of a "mass appeal procedure," approved last year by the Dutch Second Chamber, following a ruling from the district court in Breda. On July 13, 2012, the court in Breda deemed the business succession regulations to be "discriminatory" against heirs inheriting or being gifted assets other than entrepreneurial. Overturning this judgement, the Supreme Court made clear that the provisions are not discriminatory.

Under Dutch business succession regulations, corporate assets are largely exempt from inheritance and gift tax, provided that heirs continue the business for a period of at least five years. The regulations are intended to ensure the continuity of businesses in the Netherlands.

Welcoming the ruling, Dutch Financial State Secretary Frans Weekers stressed that the Supreme Court's decision is "good news for the continuity of businesses." The speed at which the Supreme Court has completed the proceedings ensures that clarity has swiftly been provided for a large group of taxpayers in the Netherlands, the Minister said.

A collective decision is to be drafted for all appeals and will be published both in the State Gazette and on the Tax Administration's website.

TAGS: court | inheritance tax | tax | business | Netherlands | law | gift tax | tax breaks | regulation | Tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »