There is no universal revenue threshold
Profit after expenses, desired private income and how much profit stays in the business matter more than revenue alone. Risk and growth plans also count.
A BV has two tax layers
The BV pays corporation tax. The director receives salary and possibly dividends taxed in Box 2. Notary, payroll and annual-account costs also apply.
- customary director salary
- corporation tax
- Box 2 on dividends
- additional administration
Liability and flexibility
A BV may isolate some business risks and simplify investment or sale. Personal guarantees and director liability can limit that protection.
Profit retained in the BV
If all profit is paid out privately, the benefit of tax deferral is limited. When money remains in the BV for investment or liquidity, timing may differ, but future tax does not disappear.
Build at least a three-year model with director salary, dividend, investment and administration. One unusually good year is not enough to justify a permanent structure change.
- director salary
- retained profit
- future dividend
- multi-year costs
Cost and consequences of conversion
Check not only notary and accounting fees but also transfer of contracts, assets, finance, insurance, vehicles and payroll. Some clients or lenders may require changes.
A BV may ring-fence some risks and make a new shareholder easier to add, but personal guarantees and director liability remain relevant. Obtain advice before the transfer.
Official sources
Rules were checked in Dutch Tax Administration publications. The official pages are in Dutch.