Glossary

An asset and liability transfer is when you transfer the assets and liabilities of your sole trader business or general partnership individually to a new or existing BV. Unlike a tax-neutral conversion, an asset and liability transfer involves immediate settlement of tax on hidden reserves and goodwill. This may be taxable, but gives the BV a higher fiscal book value of the acquired assets, which can be advantageous for future depreciation. The choice between tax-neutral conversion and asset and liability transfer depends on the specific situation.