Welcome to the KPMG Private Enterprise Global family business tax monitor for 2020.
For family businesses planning to transfer their business from one generation to the next, by inheritance or lifetime gift, the tax implications can vary widely depending on where the business is located and can create significant costs.
In the 2020 edition, we surveyed 54 countries, regions, and jurisdictions, including Ireland, and explore key factors that impact family business transfers, through two case studies analysed by KPMG Private Enterprise member firms. The theme of this edition is “Charting a path for the future”, a task that has been made more challenging than ever due to the continuing impact of the Covid-19 virus.
A key finding from the report is that tax burdens vary widely by jurisdiction. In Europe, for example, the largest economies don’t necessarily have the highest taxes for transfer of a family business. Findings show that Ireland, France, the UK, Netherlands and Spain are shown to have the highest tax for transfer on death before exemptions. In Ireland there are a number of tax reliefs to encourage the transfer of businesses and these can bring down the tax costs significantly. However, it is important to consider these well in advance to ensure that all conditions are met and the reliefs remain accessible.
The Global family business tax monitor report gives an in-depth perspective on the varied and changing tax environment for family businesses around the world, along with insight on how families can best prepare for transitioning their business to the next generation.