STAK Foundations

Within a continuously changing global environment ultra high net worth individuals become increasingly exposed to business and private risks. They seek to protect their (international) investments and to realize efficient estate transfers to the next generation.

Fidelitas has a proven track record of advising tax efficient, pragmatic and business driven cross border solutions that enable the ultra high net worth individuals to realize their objectives. The STAK Foundation is one solution, based in a  first class onshore jurisdiction with a solid reputation.

The Dutch “Stichting Administratiekantoor” (“STAK”) is a Foundation with legal personality under Dutch law.

The STAK does not have Shareholders or Partners, but merely a Board of Directors that are responsible for the management of the STAK.
The objects of the STAK are to acquire and administer assets, such as shares in other entities, under the title of administration.

In exchange for the assets contributed, the STAK will issue Depository Receipts to the contributors.

The STAK, being a legal entity, has full legal title to the assets that its administers. The full economic ownership of the assets remains however with the contributors / Depository Receipt Holders.

On the basis of the Trust Conditions, the STAK must pass on all proceeds from the assets that it administers to the Depository Receipt Holders.
The contributors / Depository Receipt Holders can maintain full control over the assets administered by the STAK by becoming members of the Board of Directors of the STAK.

By virtue of its particular features, the STAK may offer the following
opportunities for non-Dutch resident investors:
- Tax Deferral
- Confidentiality
- Asset Protection
Of course, the advantages offered by the STAK also depend on the legal
and tax treatment of the STAK in the state of residence of the Depository Receipt Holders as well as in the country of the assets held by the STAK.A STAK is (like all Dutch Foundations) only subject to Dutch corporate income tax if it is engaged in a trade or business. The mere holding of assets under the title of administration is generally not considered as a trade or business.

For this reason, the STAK should not be subject to Dutch corporate income tax.

Moreover, the STAK does not realize profits, as a consequence of its obligation to pass on the proceeds from the assets that it administers to the Depository Receipt Holders.

No Dutch Dividend Withholding Tax is due upon the on payment of investment proceeds by the STAK to the Depository Receipt Holders.