Why do you need a current account agreement?
The current account agreement may be used in a variety of situations. However, it is most often used between a personal holding and a subsidiary. The personal holding will regularly advance small amounts for the subsidiary. The subsidiary will regularly do the same for the personal holding. The current account agreement functions as a written confirmation that all monetary claims and debts established between the personal holding and the subsidiary will be settled automatically. This is relevant for the Dutch tax authority. No (business) interest is charged if the current account balance does not exceed the amount of € 17.500,--. A (business) interest must be charged if the current account balance does exceed the amount of € 17.500,--. The interest rate is confirmed in an agreement. Please note that the current account agreement is meant for advances of relatively low amounts, not long-term loans. In case you have set up a holding structure, you will also need a separate current account agreement between you as director and main shareholder (DGA) and the personal holding. You can tailor this document to your needs and subsequently download it from hier.
What does a current account agreement exactly entail?
The current account agreement contains conditions such as:
- the duration of the agreement
- the maximum balance of the current account
- the rate of interest
- exigibility of claim/debts
Do you need help with your legal questions?
The workflow starts after clicking the 'Generate your contract' button. Follow the steps in the workflow to generate the current account agreement. Please do not hesitate to contact us via the chat button on the bottom right hand of your screen. Our team of legal experts will assist you.
In need of extra advice regarding the current account agreement?
Any questions you might have about your current account agreement will be answered by our lawyers. The Ligo-membership also adds free advice via the telephone. We retain specialists in every legal field. Possible questions regarding the current account agreement could be:
- What are the possible consequences if the Dutch tax authority defines the current account debt as a loan, salary or dividend?
- What is the duration of the current account debt?
- At what point do I have to pay interest over the current account agreement?
Is your current account agreement in need of a check-up?
A check-up of your current account agreement is arranged quick and easy via your Ligo dashboard. Ligo members can request quotations with our experts at no charge. You will receive several quotations from our lawyers and tax lawyers within 1 working day after uploading your agreement. Our experts work with fixed fees to prevent unexpected charges afterwards. There is absolutely no need to spend hours looking for a suitable lawyer. Compare fee, experience and expertise and pick the right lawyer.
If the current account agreement between two companies is not the document you were looking for, please try one of the following documents: