Bare Ownership Constructions Bill

KPMG Meijburg & Co, the Netherlands comments on bare ownership constructions bill.

This is contribution number 22 by KPMG Meijburg & Co regarding bare ownership constructions bill.

The Lower House recently adopted a bill concerning taxation of "temporary" usufruct of movable and immovable assets. The date on which the bill is intended to take effect is January 1, 1996. The economic benefit received on vesting the usufruct will be fully taxable. In certain cases this also applies to subsequent transfers of the usufruct.

The bill comprises a new definition of the concept "temporary". At the core of the new provisions is the notion that each beneficial right is temporary, unless
- the beneficial right is perpetual, or