Building wealth via the company becomes even easier thanks to new Branch 6 legislation

For whom is this article intended?

This article is intended for companies that invest their reserves in a Branch 6 investment product. A Branch 6 is an investment product for companies. It allows the company's funds to be invested in a collection of equity funds, trackers and/or bond funds. And this within a legally and now also fiscally safe framework.

The legislator has definitively regulated the tax treatment of Branch 6. Previously this treatment was based on rulings, but now there is therefore legal certainty. This means that what already applied before is now also officially included in the law. Concretely it concerns the new art. 362bis §2 of the Income Tax Code.

What is the advantage of a Branch 6 investment?

A Branch 6 is a particularly interesting alternative to the DBI Bevek, for example. This is due to a number of tax advantages, including:

- No premium tax on the deposit - (Almost) no exit cost - No tax on stock exchange transactions - No annual tax on securities accounts - No risk of losing the reduced corporate tax rate - Treatment of value fluctuations: - Capital losses in a bad stock market year deductible - Capital gains in a good stock market year taxed in corporate income tax - The last two advantages are only settled on surrender of the contract.

What about the transfer to private assets?

It is nowadays possible to let the surrender of a Branch 6 policy flow seamlessly into a similar Branch 23 policy in a private name. In that sense Branch 6 is an indispensable instrument for building wealth in the private sphere via the company.

Less work for the accountant.

Investing via the company often has an unpleasant side effect for your accountant: the number of accounting transactions increases enormously. This is not the case with Branch 6. Where until recently he/she had to book every change in every line of the investment portfolio, he/she now only has to process the capital loss or gain once a year.

Life Experts is not only there for building your pension during your career via IPT (an individual pension commitment funded by your company), VAPZ (the free supplementary pension for the self-employed), third pillar. We are also there for your lifelong wealth building and preservation of your standard of living after your active career. In this approach a Branch 6 capitalisation contract can play a very important role.