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Transfer tax in agriculture
Are you soon involved in a (phased) business transfer? Then make sure that you are familiar with the complex operation of transfer tax. Despite some exemptions, a smooth transition can be challenging. There are a number of essential points to consider during a (phased) business transfer.
Attention to transfer tax is important for business transfers in agriculture, because most agricultural companies own real estate. It promotes the continuity and development of family businesses. In principle, you pay transfer tax when transferring your company, unless an exemption applies. Even with these exemptions, it sometimes remains a challenge to transfer companies smoothly and effectively.
Business succession exemption less effective
The business succession exemption, once intended to protect family businesses against high tax burden, no longer fits in well with the current situation in agriculture. Changes in regulations and corporate structures, such as complex partnerships and the use of hybrid BVs, make the existing exemptions less effective.
Read some examples that illustrate this.
Stumbling block for restructuring
Transfer tax regularly forms a stumbling block for restructuring. That's why it's crucial to pay attention to the potential consequences when implementing changes within your company. Other tax laws often offer additional options to transfer your company in a phased and tax-efficient manner. For example, income tax offers an extensive reinvestment reserve if you use the stopper scheme.
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