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.
- 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.
- 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.
April 5, 2021
December 4, 2019
December 2, 2019