For each proposed investment, you look at the expected return, the risk and possibly also the sustainability of that investment. This is no different when investing in a crowdfunding project. It makes sense to map out the tax aspects of your investment in advance. The tax treatment of your investment partly determines your net return and the possibility of taking a loss or not if the investment unexpectedly turns out badly. The treatment for taxation depends on the form of crowdfunding and the way in which you make the investment. In this blog we will only discuss the private investment in a crowd-financed BV.
There are roughly four forms of crowdfunding:
- Shares (equity based), loan (loan based), reward (presale and reward based) and gifts.
Shares (equity based)
You effectively become a co-owner of the company. You get all the rights that shareholders have, such as control (voting rights) in the general meeting of shareholders, including the right to be formally convened and to speak, access to annual accounts of the company, as well as financial rights such as the right to dividend. In addition, the shares entitle the holder to a proportional part of the reserves present in the company. You can opt for track my tax refund there also.
It is conceivable that special shares (class shares) or certificates will be created for this purpose, so that you have less control, but only a financial interest in (part of) the company. With those shares, it is all about investing in a company with dividend and an increase in the value of the share as compensation. For the value of your share it is good to look at the free tradability of that share. If there is an obligation to offer (blocking scheme) that includes a prescribed valuation, this can significantly depress the value. The tax treatment depends on the way in which you invest or invest.
In this blog we will only discuss the private investment in a crowd-financed BV Investment from private:
If the private shares represent 5% or more of the issued capital, you have a so-called substantial interest. As a result, the dividends and capital gains will in principle be taxed with 25% income tax (substantial interest tax). Such a substantial interest also exists if you acquire at least 5% of the issued capital of a type of share.
For example, there may soon be a type of share in the aforementioned special shares. A loss on the investment is, under certain conditions and sometimes only in the long term, deductible at 25%. With an interest of 5% or more that represents a larger financial interest (for example, substantial price gains are expected) it may be useful to set up a personal holding company.
