Tax restructuring is a strategic process in which a company’s legal structure is adjusted with the primary goal of optimizing its tax position. This can lead to immediate tax savings, the deferral of tax claims, or the minimization of future tax risks. It is a complex legal area that requires careful advice, as the Dutch Tax Administration applies strict rules to combat purely tax motives without a business justification.

The main reasons for tax restructuring a company are:

• Optimizing income tax: choosing the most favorable legal structure (for example, from a private company to a private limited company or vice versa).
• Estate planning & business succession: preparing the company for a smooth and tax-efficient transfer to the next generation (using the Business Succession Schemes BOR/DSR).
• Risk diversification: shielding certain business activities in separate entities to protect assets from operational risks.
• Facilitating mergers and acquisitions: creating a tax-neutral structure that is attractive to potential buyers or partners.