The Netherlands Antilles offers different types of tools for customers to choose who can best meet your needs.
1. Commanditaire Venootschap (C.V.)
These are used for the deferral of taxes generated by Latin American investments abroad, or as a tool to receive earnings from abroad. Choosing a C.V. is trying to avoid the consequences that occur when we turn to a court considered a “tax haven” or “low-tax country” by the tax authorities of investor’s country.
In principle, and depending on the country concerned, the Latin-American tax may be extended, if the proceeds are collected and are not distributed, while the impact of inheritance taxes in the United States can be minimized if the holder is a legal person and not an individual. This can be achieved by structuring the investment through a CV, which investments or assets are in the account of the beneficiary in Latin America. This provides an extra protection to the investments, especially regarding the confidentiality of beneficiary’s identity.
For the constitution of the VC, it requires the signature of a partnership agreement between two or more members. The contract is usually signed before a Netherland notary to give authenticity to the act and exact date of its celebration. Besides this notarial act, there will no other record of the formation of the CV.
In principle, the C.V. can invest in all kinds of financial assets, either through investment or bank accounts. With a scope, it can also invest in real estate located in countries other than Netherlands. Naturally, certain types of investments abroad may generate the application of local taxes. Typically, this is a result because of the investment type and not the use of CV so that the recipient is generally not placed in a more burdensome for using this tool.
Structured correctly and without acting in the Netherlands, the CV rule should not pay taxes in that country (it is considered fiscally transparent), nor is forced to register with any agency or entity. It is not required to submit financial statements. All this contributes to its confidential nature and its simplicity of operation and maintenance.
2. Stiching Particular Fonds (SPF)
The fundamental difference between this new figure, the “Stichting Particulier Fonds” (hereafter SPF), and a trustee or an ordinary foundation ( “Stichting Administratiekantoor”) is that, SPF can make distributions to beneficiaries, without being necessary to satisfy the requirement that such a distribution should have the purpose of beneficence’s acts. Another distinctive feature is the ability to make distributions of profits among the founders of it.
As regards the taxation of this entity in the Netherlands Antilles, the contribution of assets to a SPF is only taxed as donation, with a tax rate of 25%, when the founder is resident in that territory, while the contributions made by non-residents are exempt from that duty. An SPF is not subject to taxation by the tax benefits, unless such benefit comes from company activities or business. The administration of the property (except for third parties) and acting as “holding foundation of participations” are not considered as commercial or business activities.
Using a SPF
You can obtain the following benefits having a SPF:
• An SPF may act as administrator for multiple security holders whose securities are secured by mortgage, pledge or any other value. By holding the authority to act on behalf of the group, can be avoided by various legal and administrative procedures.
• An SPF can act on behalf of a group of investors who have transmitted shares in various properties such as copyrights, or any other rights to the intellectual or industrial property to the SPF. This exercise such rights on behalf of interested parties, receiving royalties (royalties), or defending the rights previously mentioned, inside and outside the courts.
• An SPF may, in its capacity as trustee, to act as a shareholder, and exercise all rights and powers added to such actions, on behalf of securities’ holders.