Recently, the internet consultation agreed on a bill introducing the private limited company with a social purpose (BVm). The NOB is now calling for appropriate tax incentives to be made available for this new legal form.
BVm
The introduction of the BVm status is intended to achieve greater recognition and visibility for social enterprises that are incorporated as private limited companies (BVs). By holding BVm status, the company makes it clear that generating social impact is more important to it than generating profit for its shareholders. A guaranteed right to profit for shareholders is not ruled out (unlike in the case of a foundation).
Only private limited companies (BVs) can acquire the new ‘m’ status. The decision to adopt ‘m’ status is made by adopting or amending the BV’s articles of association. The notary, who draws up the articles of association, must confirm that the BV’s object complies with the rules for the BVm. The BVm is registered as such in the commercial register.
The following are regarded as social objectives (as recognised under the ANBI scheme):
- well-being;
- culture;
- education, science and research;
- protection of nature and the environment (including the promotion of sustainability);
- healthcare;
- care for young people and the elderly;
- development cooperation;
- animal welfare;
- religion, philosophy of life and spirituality;
- the promotion of the democratic rule of law;
- social housing;
- human rights;
- labour market participation;
- a combination of the above objectives.
Tax
The draft bill submitted for consultation makes no mention of the tax status of the BVm. The NOB believes that this should preferably be addressed as part of the comprehensive review of the tax system. Tax aspects that already warrant attention are:
- the application of the arm’s length principle;
- a more generous tax relief on donations for the BVm;
- the question of whether a BVm can form part of a tax group for the purposes of corporation tax;
- the application of the customary wage scheme.