Operating your own company in Belgium (BV/SRL) provides flexibility and tax benefits, but it's essential to grasp how your income structure works. As the sole shareholder and employee, you have several income options, each with specific rules and implications.
Your Company is a Separate Legal Entity
Even as a one-person company, your BV/SRL is a distinct legal entity from you as an individual. This means it has its own assets, liabilities, and legal responsibilities.
Salary Structure and Payslips are Mandatory
You are considered an employee of your own company and must establish a formal salary structure. This includes:
Monthly Payslips: Your company must issue you regular payslips detailing your gross salary, taxes withheld, social security contributions, and net salary.
Social Security (ONSS) Contributions: Both you and your company are responsible for paying social security contributions, which fund benefits like pensions, healthcare, and unemployment.
Professional Payroll Provider: It's highly recommended to use a payroll provider or social secretariat to ensure compliance with Belgian labor and tax laws. Your accountant can assist in setting this up.
Setting Up Your Salary Structure
Consult Your Accountant: Your accountant will help you determine the amount of salary, and the full setup to optimize as best as possible
Determine Your Gross Salary: Factor in your living expenses, tax rates, and desired net income to calculate an appropriate gross salary (your accountant will run computations for you and recommend the best options)
Choose a Payroll Provider: Research and select a reliable payroll provider that can handle your monthly payslips and social security contributions.
How to encode your payslip in Accountable?
The following link will take you to an article that explains step by step how to enter your payslips correctly in Accountable.
Additional Income Options Beyond Salary:
Dividends: After paying yourself a salary, your company's profits can be distributed as dividends. Dividends are subject to separate taxes.
Pension Plan: You can set up a private pension plan through your company, allowing for tax-deductible contributions to save for retirement.
Other Benefits: Your company can offer additional benefits like a company car, meal vouchers, or group insurance, which may have tax implications.