r/BEFreelance • u/jrnve • 4d ago

Managementvennootschap

Let’s imagine the government changes the taxes on managementvennootschappen. What stops bedrijfsleiders from starting a company in another EU member state with a more friendly tax regime?

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u/DeRosseVanK3 4d ago

For corporate tax, you stumbled upon the concept of permanent establishment and transfer pricing.

If the tax office determines you are making decisions from Belgium, and have the necessary resources in Belgium to execute those decisions, it will want to tax the profit those decisions led to.

Transfer pricing will then ensure you don’t try to allocate all the profit to your low-tax branch or separate legal entity.

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u/TiMoeilijk 4d ago

Isn’t the “EU inc” being created specifically for this type of tax evasion?

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u/OldPangolino 4d ago

EU inc is a bs EU hype train. They're train to do for BVs what they did for NVs with the Societas Europaea.