Glossary

A tax-neutral conversion (geruisloze inbreng) is a fiscal facility that allows you to convert your sole trader business or general partnership into a BV without immediately paying income tax on the hidden reserves and goodwill in your business. The Tax Authority treats the BV as if it is fiscally continuing the business as if no transfer took place. Strict conditions apply, including an application to the Tax Authority and a mandatory holding period of at least 3 years. The tax claim does not disappear but is deferred to a later moment.