COMPLEX TAX: FISCAL AUTHONOMY OF REGIONS (Belgium, flandels,

Differents rules in the regions, for buying a house.

10% in flanders, 12% in BRUSSELS.
Excentions for starters.
Personal income tax: (pit) rogressive rate, rate of income rate
increase the amount of marginal rate increase.
+ municipal surcharge: not for every city the same. In brussel and
surranding is :7-8-9%, and will increase to 10% due to . Many people
domiciliate outsite. People work 9 months in order to pay taxes.
CORPORTANTE INCOME TAX:
33,99% in Brussels
Copmanies appy for reduces rates. First limit per year not more
profit than 322.500Net profit of taxable. 25.000 euro for PIT is more than for the
company
Why from 90.000-322500 you have effective tax of
33,99 is the highest income tax rate.
Super gross salary 135
Employer pay social security( 35)
Gross salary 100
Social security employee (13)
35+13=48% go to social security
Taxable income 87
PIT 50%(43)
Net income: 44, 1/3 of 135. Belgium works for the government until
30th of September.
CIT: OWN MANAGEMENT COMPANY, SEND INVOICE TO CLIENT
SET UP A COMPANY, BECAUSE you get a pension fee, an extra legal
pension. Tax deductible, pros from working with a company of your
own.
CIT
34

XCOMPANY
100
66 distribute? Reinvest? Set up
reserves?
How can you distribute the
reserves?
WAY OF DISTRIBUTING PROFITS:
DIVIDENTS: pay to shareholders
(25% rate on dividens)
RENT

SALARY
INTEREST PAYMENT
When you reserve income you also pay taxes. Taxes at the reduced
fee can be.
When you distribute profits, you go for PIT. The money you take out,
the savings in a bank account are less than 1%. At liquidation, you
pay 25% on build reserves.The CEO of XCompany, but is a lower PIT.
You can also go for extra pension,
The house is used as from the company: The company is paying
from the gross income the house, and the expenses, as well as the
depretiation.
At what price you can get out for the own house out of the
company? At real market value.
Original price 100.000
Depreciation (40000) Reduction on taxable income
Real value 150,000
You have a taxation on 90,000 is a Capital Gain. If that house is in
Belgium, you pay 12% on market value price 150,000.
Real estate in your company, your company is within the company
and company gets banckrupt, you lose your house.
That building out of your company, rent charge.
Exam question:!!!!!
As a owner of own company 50,000 you put it as share capital, and
recive back dividend or you are going to lend that 50,000 to the
company and recive back interest.
For the company the interest is tax deductible, but dividents are not
tax deductible. Giving a loan can be due to income tax purcpuse can
be more interesting because the interest the company pays to you
is tax deductible, and you as a person, recive a interest, and pay
25% on interest. you have 75 intead of the dividend.
Net dividend you pay 50%, similar as a salary, you dont have social
security.
CONCLUSION:
Make use of the advantages the PIT gives us. + advantages of CIT
gives us. And with that combination, we have the lowest effective
tax rate.