The Netherlands Supreme Court has ruled in recent proceedings that the country’s business succession rules, provided for in the inheritance and gift tax law, are not contrary to the principle of equality.
Under Dutch business succession regulations, corporate assets are largely exempt from inheritance and gift tax, provided that heirs continue the business for a period of at least five years. The regulations are intended to ensure the continuity of businesses in the Netherlands. In the absence of this exemption there would be a danger that a part or the whole of a family business might have to be sold to cover the tax burden.
