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From sole trader to holding company

E-commerce entrepreneurFrom sole trader to holding company

Tax · E-commerce

  • €210,000recurring annual savings
  • 49% → 19%effective tax rate

Initial situation: A high tax burden held back reinvestment.

A Dutch e-commerce entrepreneur ran his business as a sole proprietorship. At €480,000 net profit he fell into the top bracket, with an effective rate just above 49%. Every euro of profit was taxed heavily first. That made reinvesting hard.

  • €480,000Net profit per year
  • 49%Effective tax burden
  • Sole proprietorshipStructure at the outset

Approach: A durable structure for growth and reinvestment.

  1. Step 1

    Situation and profit flows analysed

  2. Step 2

    Tax-neutral contribution into a BV holding structure

  3. Step 3

    Liquidity passed up tax-free to the personal holding

  4. Step 4

    Operational liability ring-fenced

Outcome: structurally €210,000 a year freed up for growth.

The effective tax burden fell from 49% to around 19% at company level. At his profit level that means a structural annual saving of €210,000, directly available for reinvestment, wealth building or a future exit.

“With the right structure you pay less tax not through tricks, but because your business is set up the way it should be.”

Abdullah SezenPartner – CFO

The partner who helps you with this

The partner who handled this case.

Abdullah SezenPartner – CFO

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