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<\/p>\n<\/p>\n
The bill on the Excessive Borrowing from Own Company Act has been submitted to the Lower House<\/a>. We already describe this scheme, following the internet consultation, in our article Combating excessive borrowing from own BV<\/a>.<\/p>\n The crux of the scheme is that a DMS's total debts to the BV are considered a notional regular benefit from substantial interest. That benefit is taxed with income tax at a rate of 26.9% (of course, this rate may still change).<\/p>\n However, there is a threshold: up to \u20ac500,000 in debt, there is no notional regular benefit. Taxable owner-occupied housing debt is completely disregarded.<\/p>\n To avoid annual notional regular benefits, the threshold is increased by the amount of notional regular benefits settled with the tax authorities.<\/p>\n The target effective date of the law is 1 January 2023. The reference date for the size of debts is on the last day of each calendar year. Therefore, what matters for 2023 is the total amount of debts owed to the own BV on 31 December 2023.<\/p>\n Example<\/em> To avoid double taxation, a negative regular benefit is also introduced. This negative benefit can be offset against positive substantial interest income (e.g. dividends paid out). To the extent this is not possible, there is a loss from substantial interest. This loss is offset against the substantial interest income of the previous year and that of the following 6 years.<\/p>\n Naturally, the threshold is reduced by the negative notional benefit, but not beyond \u20ac500,000.<\/p>\n Example<\/em> The limitation on loss relief over time means that debt repayment must be carefully planned.<\/p>\n Example<\/em> The Excessive Borrowing from Own Company Act applies in full to all existing debts. The question is whether this is fair. After all, with regard to loans taken out before the law was announced, the DGA could not yet consider the consequences.<\/p>\n In its advice to the Government, the Council of State indicates that it does not consider this to be fair. The question now is whether Parliament considers a transitional period of 1 (extra) year sufficient opportunity to still anticipate the new regulation (it was initially intended that the law would take effect as early as 2022).<\/p>\n One misunderstanding that already seems to be emerging is that from 2023, the DGA can take on up to \u20ac500,000 in debt with his or her own BV (safe harbour) without any problems. However, in addition to the Excessive Borrowing from Own Company Act, the Tax Authorities will retain all their existing options to make it plausible that borrowed money has definitively left the BV's assets. In that case, there may be a (disguised) dividend, which is taxed as a regular benefit from substantial interest.<\/p>\n With debts above \u20ac500,000 being targeted by the bill, the tax authorities may actually start to set their sights on the DMSs with debts up to \u20ac500,000.<\/p>","protected":false},"excerpt":{"rendered":" Het wetsvoorstel inzake de Wet excessief lenen bij eigen vennootschap is ingediend bij de Tweede Kamer. We beschrijven deze regeling al, naar aanleiding van de internetconsultatie, in ons artikel Bestrijding van excessief lenen van de eigen BV. Fictief regulier voordeel Kern van de regeling is dat het totaal van de schulden van een DGA aan […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-955","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=955"}],"version-history":[{"count":1,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/955\/revisions"}],"predecessor-version":[{"id":2967,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/955\/revisions\/2967"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Fictitious regular benefit<\/h4>\n
\nOn 31 December 2023, a shareholder has total debts to his BV of \u20ac950,000, including \u20ac200,000 in tax-efficient home ownership debt.<\/em>
\nThat means there is a notional regular benefit of (\u20ac950,000 -\/- \u20ac200,000) = \u20ac750,000 -\/- \u20ac500,000 = \u20ac250,000.<\/em>
\nIncome tax due on this benefit in 2023 is: 26.9% * \u20ac250,000 = \u20ac67,250.
\nThe threshold raised by the realised benefit is: \u20ac500,000 + \u20ac250,000 = \u20ac750,000.
\n<\/em><\/p>\nNegative fiat benefit<\/h4>\n
\nThe DGA in our example pays off \u20ac150,000 of debt in 2024 (not the owner-occupied home debt for tax purposes). This creates a negative notional benefit of \u20ac800,000 -\/- \u20ac200,000 = \u20ac600,000 -\/- \u20ac750,000 = \u20ac150,000.
\nThis loss is offset against the substantial interest income in 2023 (the \u20ac250,000 amount calculated above).<\/em><\/p>\n
\nIf the DMS does not redeem in 2024, but in 2025, the negative regular benefit of \u20ac150,000 cannot be set off against the substantial interest income realised in 2023. It is then important to plan such that settlement can be made in the six years following the year of repayment.<\/em><\/p>\nExisting loans<\/h4>\n
Misunderstanding<\/h4>\n