Glossary

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Tax

Cessation profit

Cessation profit (stakingswinst) is the taxable gain that arises when you end your business or a part of it. The difference between the market value of assets at the time of cessation and their book value constitutes the cessation profit. You pay income tax on cessation profit in box 1. Certain reliefs are available, such as converting the profit into an annuity or applying the cessation allowance.

Associated article(s):
Sole trader to BV: tax-free transfer, asset deal or wind down
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