BELGIUM START-UP PACK TAX CHECKLIST

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1 BELGIUM START-UP PACK TAX CHECKLIST NEW COMPANIES Activate your company Register with the Register of Legal Entities, at a centralized company docket (guichet-entreprises/ ondernemingsloket) and obtain a company number After the filing of the deed of incorporation, the clerk s office will automatically register the company with the Register of Legal Entities, which is part of the Crossroads Bank for Enterprises. The company will be given a single identification number, the enterprise number (numéro d entreprise, or ondernemingsnummer), which can be activated only by using a recognized one-stop shop (guichets d entreprises or ondernemingsloketten). The fee for registering a company is EUR 82.5 for the main business entity and EUR 82.5 for every additional business unit to be registered with the Crossroads Bank for Enterprises Belgium Start-Up Pack Tax Checklist

2 File Company Tax Returns annually A taxpayer subject to corporate income tax, is required to submit an income tax return on an annual basis in the form and within the deadlines provided by the law. The Belgian income tax system is to a large extent based on an administrativeassessment approach. In such a system, the taxpayer must spontaneously submit a tax return in which he declares his income and claims tax deductions. The Belgian tax authorities will then use the figures provided in the tax return to compute the amount of tax due and send the initial tax assessment notice to the taxpayer which he should then pay. For residents, their filings are due within one month after receipt of the tax form from the tax authorities and, in principle, at the latest on 30 June of the year following the income year. Resident taxpayers must file their return electronically ( biztax ). Failure to comply with this requirement gives rise to a fine and/or penalty and could also result in taxation on an estimated basis. The amount of corporation tax that a company must pay is normally payable within two months after receipt of the notice of tax assessment (which is issued no later than 30 June of the second year following the income year. If a company opts to pay advance payments in the course of the income year a tax bonification is granted Belgium Start-Up Pack Tax Checklist

3 Professional Income Withholding tax As a general rule, professional income withholding tax must be paid within a 15-day period following the month in which the wages were paid or attributed. Belgian tax law, however, includes several exceptions to this rule. As from January 1, 2009, the withholding tax on professional income needs to be declared electronically through the online system Finprof. The difference between the final tax liability and the withholding is payable or refundable within two months after receipt of the tax assessment. The tax assessment is, in principle, issued before 30 June two years following the income year. Register your company with the social insurance fund for self-employed persons The company must register with the social insurance fund for self-employed persons ( caisse d assurances sociales pour travailleurs indépendants / sociale verzekeringskas voor zelfstandigen ) at the latest on the day of the start of the activities, and no longer within 3 months of incorporation. It must pay into this fund an annual contribution of EUR 347,50 or EUR 868 depending on the size of the company. In addition, if the company has employees in Belgium, it must register with the Belgian social security administration for salaried workers (ONSS/RSZ) and comply with all applicable Belgian employment regulations Belgium Start-Up Pack Tax Checklist

4 Register your company for VAT and paying VAT The company may request the VAT registration number either directly from the local VAT administration or through the centralized company docket, which can apply for the VAT registration number electronically (but in both cases, the VAT registration number will be granted by the VAT administration). The VAT registration and social security registration are done through a single enterprise number. The company therefore only needs to request the activation of the enterprise number as VAT registration number, if necessary for its activities. This activation can be done by the one-stop shop or directly by the VAT administration. VAT registration is (a) free of charge if done directly through the local VAT office and (b) EUR 55 (VAT excluded) if done through a one-stop shop (company docket). If a business makes taxable supplies or provides services within the scope of VAT in Belgium (other than VAT exempt supplies without the right to deduct input VAT) it will be required to register and in principle account for Belgian VAT. No VAT registration threshold exists in Belgium. Small businesses with an annual turnover of less than EUR 15,000 can opt for the special system for small businesses and treat their supplies as VAT inclusive. These small businesses waive their right to deduct VAT. Taxable persons other than those who are not entitled to deduct input VAT and small businesses, must file monthly or quarterly VAT returns through which they report all taxable transactions and events in respect of which VAT has become chargeable in that period. If they are not otherwise required to file periodic VAT returns, recipients of services that are taxable under the reverse charge mechanism or persons making intra-community acquisitions of goods must file a quarterly tax return. From accounting year 2014, quarterly VAT returns may be filed by taxable persons whose annual turnover in Belgium does not exceed EUR 2.5 million, or EUR 250,000 for companies trading in mineral oils, mobile telephones and computers and their peripherals, accessories and components, as well as land vehicles. In that case monthly advance payments must be made. Two monthly instalments are due on the 20th day of the second and third month of each quarter. These instalments amount to one third of the VAT due for the preceding quarter. A monthly VAT return is obligatory if the annual turnover exceeds the above amounts. Also, where the intra-community supplies of goods exceed EUR 400,000 on a yearly basis, a monthly VAT return is obligatory. Periodic VAT returns must be filed by the 20th day of the end of the tax period and must be accompanied by payment of the tax due Belgium Start-Up Pack Tax Checklist

5 INDIVIDUALS Self-Assessment A taxpayer subject to individual income tax, is required to submit an income tax return on an annual basis in the form and within the deadlines provided by the law. The Belgian income tax system is to a large extent based on an administrativeassessment approach. In such a system, the taxpayer must spontaneously submit a tax return in which he declares his income and claims tax deductions. The Belgian tax authorities will then use the figures provided in the tax return to compute the amount of tax due and send the initial tax assessment notice to the taxpayer which he should then pay. For residents, their filings are due within one month after receipt of the tax form from the tax authorities and, in principle, at the latest on 30 June of the year following the income year. Resident taxpayers must obtain the necessary forms from the Ministry of Finance if they have not received them by 1 June. Resident taxpayers can opt to file their return electronically ( tax-on-web ). Failure to comply with this requirement gives rise to a fine and/or penalty and could also result in taxation on an estimated basis. taxes_for_self_employed_people/ Belgium Start-Up Pack Tax Checklist

6 Registration requirement for directors and the managing director Directors are legally presumed to be self-employed persons. This legal presumption is rebuttable if the directors do not receive a remuneration for the performance of their duties as directors of the company. If the director is considered a self-employed person in accordance with the legal presumption, the director must register with a social insurance fund for self-employed persons. They must register at the latest at the date of commencement of their activity as self-employed person (i.e. at the latest at the date on which they are appointed as director). In absence of such registration in time, an administrative fine of EUR 500 up to EUR 2,000 may be imposed. This registration requirement applies to any director or managing director working as a self-employed person. However, it is possible to exercise the function of managing director (CEO) as an employee. The amount of the contribution due by these persons depends on the level of their remuneration (with a minimum amount to be paid even if they receive no remuneration). In some exceptional cases, no contribution will be due (e.g. if these persons are foreign citizens who benefit from a treaty between Belgium and their home country). The company can be held liable for the payment of the social security contributions of its directors and representatives, including the interests on arrears of social security contributions and penalties. business_structure/social_security_status_self-employed_workers/ taxes_for_self_employed_people/ DLA Piper is a global law firm operating through various separate and distinct legal entities. Further details of these entities can be found at Copyright 2015 DLA Piper. All rights reserved. FEB