Participation

The concept of participation is defined differently for tax purposes than for civil law.

For tax law, it refers to the financial and controlling interest that a natural person or legal entity has in another legal entity. For an interest of 5% or more, the participation exemption applies.

For civil law purposes, a participation exists if a company or legal entity provides capital to a legal entity, partly with a view to its own business, in order to be permanently associated with that legal entity. A participation is presumed to be present if a company or legal entity has more than 20% participation in a legal entity.

For more information on setting up a participation, please contact us. We will be happy to advise you.