Category: Pension
Liquidation reserve
A way to set aside company profit now at a small upfront cost, to pay it out later at a much lower tax rate.
Instead of distributing profit as an ordinary dividend, a small company can book it into a liquidation reserve and pay a modest levy immediately. After a required waiting period, that money can be distributed at a reduced additional withholding — far below the standard dividend rate — or released tax-free if the company is ever liquidated. It rewards leaving money in the company for the medium term.
Calculate it
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This article is general information for a one-person company (BV/SRL), not tax advice. Rules and figures change — confirm your situation with your accountant before acting.