Term · BV & DGA
Participation exemption (deelnemingsvrijstelling)
An exemption in corporate income tax: profit from a shareholding of 5% or more, such as dividends from your operating company, is tax-free in your holding company.
Thanks to the participation exemption, an operating company can pass profit on to the holding company without corporate income tax being paid on it again. The gain on selling the operating company is also exempt.
Only when the holding company makes a distribution to you as a shareholder do you pay box 2 tax.