National and International tax advice
Tax advice can involve a specific topic, such as business succession. Besides, every year, usually during the discussion of the company's figures and the associated income tax and corporate tax returns, attention is paid to optimizing the tax position of the director-major shareholder (DMS).
In international tax advice, the question often arises as to whether a tax treaty or unilateral regulation is applicable. Besides, this concerns advising foreign companies and DMS's living abroad about their business activities in the Netherlands. Finally, it is crucial to mention advising on and conducting tax proceedings if no agreement can be reached with the tax authorities and the tax interests are significant enough.
National tax advice
This concerns advice on specific topics: business succession, due diligence and tax audits by the tax authorities, a second opinion on tax advice, the conversion of a sole proprietorship into a private limited company, the optimization and restructuring of existing structures, the choice of whether the car should be purchased at the company or private for the biggest tax benefit, etc.
Also, it is about optimizing the tax position of the director. That usually takes place in the context of the annual discussion of the figures and returns, but also at other times. For example, in the context of estate planning or setting up the optimal company structure.
Particularly when joint ventures are undertaken with other entrepreneurs, the contractual obligations are a point of attention. That includes the deed of a general partnership or a limited partnership and, in limited liability company structures, the shareholders' agreement, and the relationship with the articles of association and any wills.
International tax advice
After determining the residence based on the national tax legislation of both countries, the determination of the residence for the tax treaty is usually the starting point for tax advice. Then it is discussed which of the two countries may levy on specific income components or apply a withholding tax. Subsequently, it must be ascertained in national tax legislation whether the country in question has the option to actually levy tax on the income components that the tax treaty allocates to this country for tax purposes.
For directors-major shareholders living abroad and companies established abroad, this usually involves (tax) advice on business activities in the Netherlands. That may involve a permanent presence in the Netherlands or the execution of temporary projects. Both situations require different structures for an optimal tax result. Even after advising on the optimal company structure, Ooms & Partners can guide these clients to implement and maintain the company structure.
Value Added Tax
The levying of value added tax is a different story because this is a tax where it is advantageous to be subject to taxation. Besides, the tax always plays a role in cross-border business activities.
These procedures are sometimes necessary if no agreement can be reached with the tax authorities about the tax consequences of a transaction, structure, or tax audit. In addition to the procedures regarding income tax and corporate tax, if there is sufficient interest, there may also be fiscal procedures regarding gift and inheritance tax, transfer tax, etc.