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ADVANCE CORPORATE TAX PAYMENTS 2021

ADVANCE CORPORATE TAX PAYMENTS 2021

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:

DateVARate% of tax due
12/04/2021VA19%75%
12/07/2021VA27,50%90%
11/10/2021VA36%112,50%
20/12/2021VA44,50%150%

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.

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ALTERNATIVE COMPENSATION 2: EMPLOYER-SPECIFIC COSTS

ALTERNATIVE COMPENSATION 2: EMPLOYER-SPECIFIC COSTS

Alternative compensation 2: employer-specific expenses

In the event that the employee has to face professional expenses that are not reimbursed by expense notes, the employer may pay a monthly lump sum to his employee in order to cover such expenses.

The lump sum is not subject to the tax withholding or social security contributions for the employee, and the employer can deduct this amount either entirely or partially if it is a fee whose deduction is limited by the code (e.g. car fees, representation fees).

Ideally, the recipient should keep evidence of these business expenses (e.g. invoices, tickets, proof of payment) for the first 3 or 4 months in order to demonstrate the reality of these expenses during a possible tax check.

The employer-specific expenses paid to the employee must be mentioned on the monthly pay sheet, indicating whether these are serious standards (i.e. the amount cannot exceed that allocated by the State to its officials) or not.

The ONSS has defined amounts not to exceed in order to benefit from the exemption:

Has. Reimbursement of 0.3653€ per km for commuting from home to work or for business trips

B. Reimbursement of 0.24€ per km for cycling trips from home to work or for business trips

C. Cost of stay in Belgium covering meals and accommodation: 35€ euros per day

D. Home office expenses covering electricity, gas, office equipment: 126.94€ per month

E. Parking fee if the employee has to pay regular parking fees: 15€/month

F. Garage fees: 50€/month

G. Car-wash fee: 15€/month

h. Meal expenses for employees who are on the road for at least 6 hours: 17.06€/day, but limited to 16 days per month and 40 days per calendar year (consecutive or not) in the same place. In the latter case, the IRS considers it to be a fixed place of work and the employee cannot collect a daily allowance for the days spent in that business relationship.

On the other hand, there is no fixed package for representation fees that an employer would pay to its employee. This package generally covers the costs incurred to attract customers, keep them satisfied, and build a professional network. These can be business gifts, drinks, flowers, etc. Since it is not always possible to obtain proof for such fees, they can be paid monthly in the form of a package. Of course, this must remain realistic in relation to the function performed.

Representation fees are deductible up to 50% for the employer.

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DÉDUCTION FISCALE DE VOTRE VOITURE DE SOCIÉTÉ EN 2020

DÉDUCTION FISCALE DE VOTRE VOITURE DE SOCIÉTÉ EN 2020

A partir du 1er janvier 2020, la déduction fiscale d’un véhicule de société ne se fait plus sur base d’un taux par tranche de CO2, mais sur base d’une nouvelle formule bien moins avantageuse.

Tout d’abord, le taux de déduction de 120% pour les voitures électriques passe à 100%.  Seuls les véhicules électriques, hybrides ou roulant au gaz naturel pourront encore bénéficier des taux de déduction les plus avantageux.

La nouvelle formule est établie comme suit :

Déduction forfaitaire = 120% – (0,5% * coefficient selon le type de carburant * nombre de grammes de CO2)

Coefficient diesel = 1

Coefficient essence = 0,95

Coefficient électricité = 0,95

Coefficient CNG = 0,90

Le taux de déduction minimal est fixé à 50%, sauf pour les véhicules émettant plus de 200g de CO2, qui voient leur taux de déduction limité à 40%.

Cette formule s’applique non seulement sur les voitures neuves, mais également sur les véhicules acquis avant le 1er janvier 2020.

Exemple : Vous achetez en 2020 une BMW 320i (essence) émettant 124g de CO2.  Votre déduction sera de : 120% – (0,5% * 0,95 * 124) = 61,1%

En 2019, pour le même véhicule, le taux de déduction était encore de 80%.

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ALTERNATIVE REMUNERATION 1: MEAL VOUCHERS, ECOCHEQUES, GIFT VOUCHERS

ALTERNATIVE REMUNERATION 1: MEAL VOUCHERS, ECOCHEQUES, GIFT VOUCHERS

In Belgium, workers’ wages are heavily taxed. The tax rate is already rising to 40% from an annual income of 12,990€ and quickly rises to 50% afterwards. This is why many employers are looking for lower-taxed alternatives for both their company and their employees.

We begin this series of articles on alternative remunerations by cheques: meal vouchers, eco-cheques and gift vouchers.

1. Meal vouchers

Companies can offer their employees meal vouchers worth up to 8 euros per day of work and are exempt from tax withholding and social security if they meet certain conditions:

· The employer’s intervention is maximum 6.91€ per cheque

· Theemployee’s intervention is at least 1.09€ per cheque

· Can’t replace another form of compensation

· Obligation to make a collective or individual agreement

· Must be mentioned on the pay slip and be nominative

· 1 meal check per actual work day

Checks can be in paper or electronic format and must be issued by an approved organization (e.g. Edenred or restaurant tickets).

The employer can deduct 2€ per cheque. The surplus is a rejected expense. Management fees are fully deductible.

2. Ecocheques

Ecocheques must be used for the purchase of eco-friendly products or services (e.g. bicycle, plants, economic shower).

They are also exempt from tax withholding and social security if they meet the following conditions:

· Maximum250€ per year per employee

· 24-month validity

· Can’t replace another form of compensation

· Checks cannot be exchanged in cash

· Obligation to make a collective or individual agreement

· They must be nominative

Like meal vouchers, ecocheques are issued by an approved organization.

The reference period for calculating the number of ecocheques to be awarded ranges from 01/06 of year N to 31/05 of year N + 1. If the worker has not worked during the entire reference period, a pro rata is calculated. If the worker is part-time, he receives 100 euros for less than a half-time, 150 euros from a half-time, 200 euros from a 3/5th and 250 euros from a 4/5th time.

Ecocheques are not deductible for the employer.

3. Gift vouchers

The employer may award gift vouchers exempt from tax and social security contributions at certain events (e.g. marriage, birth, retirement at the pension).

Maximum amount:

· €40 for Christmas, New Year’ holidays, St. Nicholas + €40 per dependent child

· Retirement : 40 euros per year of service with a minimum of 120 euros and a maximum of 1,000 euros

· Wedding bonus: max. €245

· Honor: max. 120€/year

· Seniority bonus: max. 1 * gross monthly salary for 25-year and up to 2 * gross monthly salary for 35-year

Conditions:

· All employees must have the same benefit

· Delivered by an approved body

· 1-year validity

· Can’t be exchanged in cash

If all of the above conditions are met, gift vouchers are fully deductible from the employer’s income (except the seniority bonus).

The employer can also award culture or sports cheques for an amount of 100 euros per year per employee in a tax-free way. However, these are non-accepted expenses for the company.

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THE UTILITY VEHICLE AND THE IRS

THE UTILITY VEHICLE AND THE IRS

The utility vehicle has many tax advantages over other vehicles. We take inventory of it in this article.

First of all, it is important to know what the criteria are for the IRS to accept your vehicle’s utility qualification.

The vehicle must meet the following conditions:

  • It must be intended for the transport of goods
  • Its mass cannot exceed 3,500 kg
  • The cargo space is at least 50% of the length of the wheelbase
  • The cargo space is equipped, on its entire surface, with a fixed horizontal floor free of any attachment points for additional seats, seats or seat belts;

Be careful that the IRS only takes into consideration the findings of the technical control. Some vehicles described as utilitarian by the DIV are not used for technical control.

The tax benefits are:

  • No circulation tax to be paid
  • Lower traffic tax
  • Right to the business investment deduction
  • Business expenses deductible at 100% while limited for other vehicles
  • VAT deductible at 100% while VAT is only deductible at 50% for other vehicles
  • Advantage of any kind (ATN) based on actual private use (while the ATN is flat for other vehicles).

How do I calculate the ATN on a utility vehicle?

Unlike other vehicles, the ATN must be estimated at its true value for the private use of the beneficiary. Of course, the commercial vehicle may not be used at all for the private sector, so there is no benefit to declare.

To calculate the ATN, several methods may apply. For example, an overall percentage of private use can be taken and applied to vehicle expenses that were recorded during the fiscal year.

It can also be based on the mileage price mentioned on the “moniteur de l’automobile” website. We then multiply the private mileage by this cost price. Please note that travel from home to work is private travel in the eyes of the TAX authorities.

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THE MANAGER’S CURRENT ACCOUNT

THE MANAGER’S CURRENT ACCOUNT

A current account is receivable when you owe money to your company, for example when you withdraw money from your business account or when your company pays private expenses.

A current account is a creditor when your company owes you money. The most common case is the payment of professional expenses with private money. But you may also have brought your business fund into your company for an activity you previously did as an independent. Your company does not have the funds directly to pay you back and it creates a debt to you.

Below we analyze the consequences of such accounts receivable and corporate creditors.

  1. Current account receivable

If you owe money to your company, you benefit from an advantage of any kind that is fixed flat at an extremely disadvantageous interest rate of 8.94 per year (for the 2019 tax year). You can also pay an equivalent interest on your company’s account. Interest is calculated on the average monthly receivable balance, but if the current account has changed very little during the year, it can be calculated on the annual average. This benefit must be mentioned on a 281.20 record for 28/02 at the latest. If you have passed this date, you will need to make an adjustment sheet.

As you have understood, it is better to avoid owing money to your company. If you are not able to pay back immediately, your company can also pay you upfront rent for several years if you rent out part of your home. You can spread out these rental income over the entire term covered on your personal income tax returns. However, your company will not be able to deduct these prepaid rents at once.

  1. Credit current account

We are here in the event that your company owes you money. You can therefore collect an interest that will be taxed at 30 at the furniture deposit. This interest is deductible for your company if you meet the following two limits:

  • The receivable may not exceed the sum of the reserves taxed at the beginning of the taxable period and the capital released at the end of that period
  • The interest rate charged must be in line with the market rate, referring for example to offers from banks

If you exceed one of these limits, your interest will be requalified as dividends, which are also taxed at 30 at the personal allowance, but not deductible in the head of your company. From 2020, the reference rate will have to correspond to the official rate published by the National Bank of Belgium, plus 2.5.

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LE NOUVEAU CODE DES SOCIÉTÉS

LE NOUVEAU CODE DES SOCIÉTÉS

Le nouveau code des sociétés est effectif depuis le 1er mai 2019.  Toutes les sociétés qui seront créées après cette date seront automatiquement régies par ce nouveau code.  Quelles sont les principales modifications par rapport au code des sociétés précédent et quel impact cela aura-t-il pour vous?

1. Les nouvelles formes de société

Il ne subsiste plus que 4 types de société:

  • La SRL (société à responsabilité limitée) remplace la SPRL.
  • La SA (société anonyme) englobe également l’ancienne SCA (société en commandite par actions)
  • La SC (société coopérative), mais uniquement avec responsabilité limitée
  • La société simple qui regroupe les SCS (sociétés en commandite simple) et les SNC (société en nom collectif)

2. Représentants permanents

  • Tout représentant permanent doit être une personne physique, c’est-à-dire qu’il n’est plus possible qu’une société soit représentée par une autre société.  Elle doit obligatoirement être représentée par une personne physique.
  • Il n’est plus possible de siéger en plusieurs qualités au sein d’une même société

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PAY LESS TAXES ON YOUR DIVIDENDS

PAY LESS TAXES ON YOUR DIVIDENDS

If your company makes a profit, its general meeting may decide to pay a dividend to its shareholders. The normal tax rate for dividends in Belgium is 30% (with the exception of a small exempt amount, see below), one of the highest rates in the European Union, but it is possible to reduce this tax to 20% and even to 15% if you respect certain Criteria.

First of all, it is worth recalling that since 2018, there is no longer the limit of 13% of the equity to be respected in order to benefit from the reduced rates on corporate tax. This limit was repealed at the last tax shift. Your company is therefore free to distribute the whole of its profit after tax without any tax consequences other than the rate of the withholding taxes payable.

  1. Exempt dividends

For the 2018 year of income, it is permissible to distribute up to €640 of tax-exempt dividends. It is necessary to make a Declaration and pay 30% of tax withholding, but this can be recovered via the Declaration of natural persons. For the 2019 income year, this exempt maximum amount is increased to €800.

2. Dividends taxed at 15% or 20%

If you have created your company since 01.07.2013 by a cash contribution, you can distribute a dividend at a rate of 20% after a waiting period of 2 years or at a rate of 15% after 3 years. If you have created your company before 01.07.2013, but you have made a capital increase in cash after that date, the reduced rate will be prorated on the portion of the newly brought capital. Attention: the capital must be fully paid at the time of distribution of the dividend.

You can also create a liquidation reserve. In this case, you will pay a prepayment of 10% together with the corporate tax of the year concerned, and after a period of 5 years, you will be able to distribute a dividend by paying the remaining 5%. Here, the date of incorporation of your company does not matter. If you decide to leave this money in reserve until the liquidation of your company, you will no longer pay any additional tax. Please note: If your company is at a loss, it will not be able to claim the reimbursement of the initial fee of 10%.

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INDÉPENDANT OU SOCIÉTÉ ?

INDÉPENDANT OU SOCIÉTÉ ?

De nombreuses personnes souhaitant lancer leur activité se posent très souvent la question de savoir s’il est plus avantageux de choisir un statut d’indépendant ou de directement créer une société. Il n’y a évidemment pas de réponse toute faite à cette question.  Les deux options présentent des avantages et des inconvénients et votre décision dépendra de la responsabilité financière que vous êtes prêt à prendre, du niveau de vos revenus, ou de la liberté que vous désirez avoir. Vous trouverez ci-dessous un petit comparatif entre les deux statuts:    

  • Indépendant

Lancement simple et bon marché

Responsabilité illimitée

Possibilité de tenir une comptabilité simplifiée

Société

Obligation d’établir un plan financier

Acte authentique devant notaire

Responsabilité limitée à ses apports

Obligation de tenir une comptabilité en partie double

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CALCULER VOTRE ATN AUTO EN 2019

CALCULER VOTRE ATN AUTO EN 2019

Comme vous le savez, l’utilisation privée de votre voiture de société vous oblige à déclarer un ATN (avantage de toute nature) qui sera ajouté à votre rémunération brute tous les mois pour le calcul de votre précompte professionnel.

Cet ATN varie selon le prix catalogue du véhicule, son émission de CO2, son type de carburant (diesel/essence/électrique) et son âge.

Le prix catalogue s’entend hors remises et réductions, et TVA et options incluses.  Si vous ne connaissez pas l’émission de CO2, un forfait de 205g/km est appliqué sur les véhicules à essence, et de 195g/km pour les véhicules diesel.

On applique une correction de vétusté de 6% par an sur la valeur catalogue à partir du 13eme mois depuis la date d’acquisition pendant 5 ans, de telle sorte qu’on multiplie la valeur catalogue par 70% au minimum (100% – (6% * 5)).

Formule à utiliser:

  1. Véhicules essence (et LPG): valeur catalogue x % de correction de vétusté x [5,5 + ((taux émission CO2 – 107) x 0,1)] % x 6/7
  2. Véhicules diesel: valeur catalogue x % de correction de vétusté x [5,5 + ((taux émission CO2 – 88) x 0,1)] % x 6/7
  3. Véhicules électriques: valeur catalogue x % de correction de vétusté x 4 % x 6/7

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