Tax Consequences of Business Deduction in DGA Divorce in Amsterdam
In Amsterdam, where many DGAs with BVs in the Zuidas or Amsterdam canal houses run their businesses, divorce strongly affects the tax position due to the division of business assets. The Retirement Reserve (FOR) and mid-career pension scheme in own management are impacted by equalisation. Payout of FOR leads to box 1 taxation up to 52%, but Amsterdam advisors recommend spreading via bank savings, fitting the dynamic real estate and tech sector here.
The customary salary rule (article 12a Income Tax Act) requires the ex-DGA to take at least €51,000 salary, which changes upon division of shares in Amsterdam holdings. Upon transfer, the realisation principles of the Corporate Income Tax Act apply: forfeiture profit on latent reserves, particularly relevant for expensive Amsterdam business properties. Marital conditions with a settlement clause trigger box 3 taxation on deemed return, while the Amsterdam-Noord Tax Office strictly checks real estate valuations.
Strategies specific to Amsterdam: splitting the BV into operating company and holding minimises tax, ideal for Zuidas entrepreneurs. The Excessive Borrowing Act limits debts to the DGA after divorce, with extra attention to Amsterdam mortgage rules. Pension compensation remains exempt from wealth tax. Practice example from Amsterdam: conversion of FOR to bank savings account saves 20% tax burden in a tech DGA divorce. Report changes timely to the Amsterdam tax office to prevent additional assessments, and combine with estate planning for children via local notaries in the Nine Streets. Local networks such as the Amsterdam Entrepreneurs Association offer targeted tax specialists for optimisation.