The compensation of losses from a substantial shareholding

If the income from a substantial shareholding is negative, the negative amount qualifies as a loss from substantial shareholding. The income assessed based on a provisional assessment (in Dutch: "conserverende aanslag") should be disregarded when determining the amount of losses from a substantial shareholding.

Losses from substantial shareholding can in essence be offset against positive income from substantial shareholding in the preceding year (carry back) and the six following years (carry forward).

The existence of a loss from substantial shareholding must be confirmed by a Decree from the tax office, as well as the carry back or carry forward of such losses.

If the taxpayer and his fiscal partner have no substantial shareholding in the current year or the preceding year, they can file a request for the conversion of the remaining loss from substantial shareholding into a tax deduction. Special rules apply in the event of decease of a fiscal partner. The amount of the tax deduction equals 26.9% of the loss from substantial shareholding (2023). The amount of the tax deduction must be certified by a Decree from the tax office.

The amount of the tax deduction can within certain parameters be offset against the tax due over the Box 1 income. A limited carry back and carry forward term applies.

Special rules apply in case of the decease of the taxpayer or his/her fiscal partner.