Taxes in Belgium
Belgium is one of the most heavily taxed countries in Europe.
Taxation in Belgium is quite complex.
On this page, I present a very schematic summary so that you can better understand taxation.
These are the main points with rounded figures to simplify understanding.
Your company is making sales.
Your company makes purchases.
Sales minus purchases represent your
PROFIT .
CASE 1:
You do not receive any remuneration.
Your company will be taxed at:
- CORPORATE TAX at 25% of PROFIT.
(+6.75% if not paid within the year or not a starter)
Example :
The company has a profit of 100,000 euros.
The corporate tax will be 25,000 euros.
Attention :
Your company's money is not your personal money.
If you do not take a salary, you have no private money.
However, you will have to pay INASTI contributions or apply for an exemption.
CASE 1:
You did not receive any remuneration.
INASTI contributions are a minimum of approximately 860 euros per quarter in 2023.
You will therefore have to pay approximately 3,500 euros in 2023. (unless an exemption is requested)
Attention :
INASTI contributions must be paid from the private account (not the company account).
CASE 1:
You did not receive any remuneration.
You will not have to pay PERSONAL INCOME TAX.
CASE 2:
You receive a salary.
Compensation is a purchase for the company and will reduce profit.
Your company will be taxed at:
- CORPORATE TAX at 20% or 25% of PROFIT.
(+6.75% if not paid within the year or not a starter)
Example :
The company has a profit (before remuneration) of 100,000 euros. You receive a salary of 40,000 euros.
The company's profit will be 60,000 euros.
The corporate tax will be 15,000 euros.
Attention :
Your company's money is not your personal money.
The compensation you receive is your private money.
You received a gross salary from your company.
This remuneration will be subject to INASTI contributions and personal income tax.
CASE 2:
You receive a salary.
INASTI contributions are 20.5%* .
Example :
You receive a salary of 40,000 euros.
The regularized INASTI contributions will be
8200 euros to be paid in 2023.
Attention :
INASTI contributions must be paid from the private account (not the company account).
*If remuneration exceeds the thresholds, there are other rates.
CAS 2 :
Vous prenez une rémunération.
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La base imposable de l'IMPOT DES PERSONNES PHYSIQUES est la rémunération moins les FRAIS FORFAITAIRES moins les cotisations INASTI.
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L'IMPÔT DES PERSONNES PHYSIQUES A UN BAREME PROGRESSIF TAXE DE 25% A 50%.
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Exemple :
Vous prenez 40.000 euros de rémunération.
Les cotisations INASTI sont de 8200 euros.
Les frais forfaitaires seront de 1000 euros.
La base imposable sera de : 30800 euros.
L’IMPÔT DES PERSONNES PHYSIQUES sera de 10.000 euros.
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Une partie de l'IMPÔT DES PERSONNES PHYSIQUES est exonérée par une QUOTITE EXEMPTEE calculé sur un barème progressif.
Cette QUOTITE EXEMPTEE prend compte de votre situation privée si vous avez des enfants, isolé, handicap, etc.
Chaque contribuable a au moins un % de 10.000 euros de QUOTITE EXEMPTEE.
Le contribuable qui prend 10.000 euros de rémunération n'aura pas d'IMPÔT DES PERSONNES PHYSIQUES à payer.
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Exemple :
La base imposable était de : 30800 euros.
L’IMPÔT DES PERSONNES PHYSIQUES était de 10.000 euros.
QUOTITE EXEMPTEE : 25% x 10.000 = 2.500 euros.
L’IMPÔT DES PERSONNES PHYSIQUES sera de 7.500 euros.
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Remarque :
Lorsque vous voyez le terme "PRECOMPTE PROFESSIONNEL", cela représente une avance, un prépaiement, de l'IMPOT DES PERSONNES PHYSIQUES.
Il y a d'autres frais comme frais garderie enfants, emprunts hypothécaires, pensions alimentaires versées etc qui viennent réduire l'IMPOT DES PERSONNES PHYSIQUES.
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CASE 2:
You receive a salary.
The tax is split between the Federal and the Region.
In addition to personal income tax, there is also the MUNICIPAL TAX approximately 7% .
If you have not paid enough withholding tax or advance payment, you will have a surcharge. approximately 2.3% .
You can avoid this surcharge by paying withholding tax or making advance payments.
Example :
PERSONAL INCOME TAX of 7,500 euros.
MUNICIPAL TAX: 525 euros
SURCHARGE: 185 euros
In case 1, the company has a profit of 100,000 euros, and you have not taken any remuneration:
Corporate tax: 25,000 euros
INASTI contributions: 3,500 euros*
Your company's funds: 75,000 euros
Private funds: -€3,500*
*0 euros if exemption granted
=> It is preferable to take a minimum salary of 10,000/15,000 euros
In case 2, the company has a profit of 100,000 (60,000) euros, and you took 40,000 euros in remuneration:
Corporate tax: 15,000 euros
INASTI contributions: 8,200 euros
Personal income tax: 8,210 euros
Your company's funds: 45,000 euros
Private funds: 23,590 euros (taxed at 41% rate*)
=> *Plan to set aside at least 40 to 60% to pay taxes.
CAS 3 : Les dividendes
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Au delà de 40.000 euros de rémunération, il peut être plus intéressant de prendre des dividendes pour le surplus.
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Exemple :
La société a un bénéfice de 100.000 euros.
L'impôt des sociétés sera de 25.000 euros.
Il reste 75.000 euros de bénéfice à reporter ou à distribuer.
Si la société entre dans les conditions pour distribuer: le PRECOMPTE MOBILIER sur les dividende sera entre 15% et 30%.
Le précompte est réduit à 15 % pour les dividendes alloués ou attribués lors de la répartition bénéficiaire du troisième exercice comptable et suivants après celui de l'apport.
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Exemple :
Il reste 75.000 euros de bénéfice à reporter ou à distribuer.
Choix de distribuer après 3 ans 30.000 euros :
PRECOMPTE MOBILIER : 4.500 euros
DIVIDENDES RECUS : 25.500 euros
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Contrairement à la rémunération, c'est à la société de payer le précompte mobilier.
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COTISATIONS INASTI SUR DIVIDENDES : 0 euros
IMPOT DES PERSONNES PHYSIQUES SUR DIVIDENDES : 0 euros
In case 3, the company has a profit of 100,000 euros, and you have taken 25,500 euros in dividends:
Corporate tax: 25,000 euros
Withholding tax on movable property: 4,500 euros
Your company's funds: 45,000 euros
Private funds: 25,500 euros
Other examples of taxes in Belgium
VAT: You pay VAT on your sales, and you recover VAT on your purchases.
Company contribution: All companies must pay 347.50 euros per year (except for starter companies).
ONSS: You pay ONSS contributions when you have salaried workers.
Withholding tax: The company must pay withholding tax for its employees.
Property tax: You pay property tax on real estate when you are the owner, or when you are a tenant if the lease stipulates it.
Provincial, municipal, and regional taxes may be added.
Customs: When you import merchandise or goods.
Excise duties: When you buy drinks, etc., outside of Belgium.
Registration fee: When publishing the documents of your company or when purchasing a building.
Inheritance taxes: In private matters, when you receive an inheritance
AFSCA contribution, vehicle taxes, gambling taxes, etc.