If you (partially) discontinue your business in the Netherlands, you may be eligible for discontinuation relief (stakingsaftrek). In that case, you will pay less tax on discontinuation profit (stakingswinst), such as the revenue generated through goodwill. Discontinuation relief is capped. Under certain conditions, you can convert discontinuation profit into a tax free annuity (stakingslijfrenteaftrek).
When do you qualify?
In order to be eligible for discontinuation relief, you must at least satisfy the following conditions:
- you earn a profit from your business(es)
- you earn a profit by discontinuing one or more businesses
How to apply?
You apply the discontinuation relief to your income tax return. If you want to convert discontinuation profit into a tax free annuity , you also indicate this on your income tax return.