Inheritance tax threshold up for companies that use BOR

What changes?

Does a donation or inheritance make you the owner of a business? If you make use of the Business Succession Scheme BOR (Bedrijfsopvolgingsregeling, in Dutch) you will not have to pay inheritance tax if the value of the company does not exceed €1.5 million. The threshold is currently €1,205,871.

Does the value of the company exceed €1.5 million? The exemption you can claim over the exceeding amount is reduced from 83% to 70%.

This means that if you inherit or are gifted a company with a value of €2 million, you have to pay succession tax on €150,000. Because:

• You pay nothing over the first €1.5 million
• You are exempt for 70% over the remaining €0.5 million, that is €350,000
• You pay over the remaining 30% of €0.5 million, that is €150,000

For whom?

Entrepreneurs who:

• continue a business they were gifted or inherited
• meet the conditions for using the BOR

When?

The change in law enters into effect on 1 January 2025.