A Dutch B.V. or N.V. (private limited company or public limited company; hereinafter: the company) regularly forms part of a larger group whereby it is not the top holding company but does have one or more participation interests. The company acts as an intermediate holding company, e.g. for the purpose of structuring certain activities or for tax reasons.
In many cases the company is obliged as an intermediate holding company to prepare consolidated annual accounts concerning its own activities and those of its participation interests and to file these with the Handelsregister (Trade Register). One exception to this is the application of the intermediate holding regime under Civil Code Book 2 section 408 (hereinafter: the intermediate holding regime).
This leaflet discusses the significance of this regime. It also considers the conditions for the application and the termination of the intermediate holding regime, for both the company’s consolidated annual accounts and the company’s individual annual accounts.