The use of holding companies for tax and investment purpose for small investors
Uronen, Olli (2019)
2019
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Julkaisun pysyvä osoite on
http://urn.fi/URN:NBN:fi:amk-2019052311495
http://urn.fi/URN:NBN:fi:amk-2019052311495
Tiivistelmä
This thesis researches the use of a holding company in tax planning and investing for a small investor. There is not much information available specifically about this topic and this research aims to bring some knowledge to the reader.
An interview was conducted with one entrepreneur who is currently utilizing a holding com-pany for asset management and tax planning purposes. The interviewee stated that it is very wise to consider using a holding company. Much of the study was conducted as a desktop study by reading quality books and online sources like Tax Administrations web pages. Example cases present the effects of taxation in different cases.
The goal of this thesis is to research a few different aspects of tax planning and investing in stocks and provide some recommendations for small investors and for especially those who are planning to use a holding company to gain lighter tax burden while increasing the total value of assets.
The main result of this study is that a holding company provides significant benefits when there is no need to withdraw huge amounts of assets quickly and when those assets are instead used to grow businesses or they are invested to grow asset value. Postponed tax burden when withdrawing money from a holding company is so heavy that for most cases the use of a holding company is not recommendable
An interview was conducted with one entrepreneur who is currently utilizing a holding com-pany for asset management and tax planning purposes. The interviewee stated that it is very wise to consider using a holding company. Much of the study was conducted as a desktop study by reading quality books and online sources like Tax Administrations web pages. Example cases present the effects of taxation in different cases.
The goal of this thesis is to research a few different aspects of tax planning and investing in stocks and provide some recommendations for small investors and for especially those who are planning to use a holding company to gain lighter tax burden while increasing the total value of assets.
The main result of this study is that a holding company provides significant benefits when there is no need to withdraw huge amounts of assets quickly and when those assets are instead used to grow businesses or they are invested to grow asset value. Postponed tax burden when withdrawing money from a holding company is so heavy that for most cases the use of a holding company is not recommendable