Request for deferral of payment of final profit tax upon emigration
This request is intended for natural and legal persons who cease to earn taxable profits in the Netherlands (due to emigration) and who have received an income tax or company tax assessment for the final profit.
On November 29th, 2011 the EU Court of Justice made a judgement in a case where the tax on the final profit was called into question (National Grid Indus BV – case number C-371/10). The Court held that there was no speak of a restriction on freedom of establishment within the EU, provided that with any tax on final profit an opportunity for (interest-bearing) payment deferral is also provided.
In anticipation of an amendment, the Minister of Finance has offered the possibility of opting for interest-bearing deferral of payment for tax assessments on final profits which have not yet been realized (resolution from December 14th, 2011 number BLKB2011/2477M). For this, security must be provided by the taxpayer. A bank guarantee is the most appropriate for this.
The deferral of payment is not for a set amount of time, but once the final profit has been realized the deferral is removed. The taxpayer must prove that the profit is not yet realized annually with a summary of “not realized” asset components. Whenever an asset is disposed of, the deferral of payment for the portion of the tax assessment which related to the value of said asset is revoked.