If you expect to make a profit in 2021, it is strongly recommended that you make one or more advance tax payments in order to avoid a 6.75% increase in this tax.
This recommendation is only valid for companies that are more than 3 years old. Indeed, there is no increase for start-up companies, namely for the first 3 years.
Like every year, there are 4 deadlines for making your advance payments (VA1, VA2, VA3 and VA4), knowing that you will save faster by paying more money to VA1 than to subsequent VAs.
Below is a table with the different 2021 due dates, the percentage savings for each due date, and the percentage of the amount of tax you would have to pay in order to avoid the markup:
|Date||VA||Rate||% of tax due|
Example: if you estimate that your tax payable on your 2021 income will amount to € 10,000, you will only have to pay € 7,500 to VA1 to avoid the 6.75% increase. Whereas if you wait for VA4, you will have to pay an advance payment of € 15,000 in order to completely avoid the mark-up (with of course a refund or deferment of € 5,000 of overpaid tax).
What is the rule for companies that do not close on 31/12?
The same durations are applied starting from the start date of the exercise.
Example for a company which closes its accounts on 31/03:
VA1 = 12/07/2021
VA2 = 11/10/2021
VA3 = 01/10/2022
VA4 = 21/03/2022 If you do not have a taxable result or if you have a loss, there is of course no point in making an advance tax withdrawal.Read more