When doing business in Belgium it is important to do the necessary research and cover all the aspects of the business plan. Keeping abreast of the new laws and regulations, carrying out feasibility studies, and finding a suitable location can be a tedious task. So if you are planning to enter into the Belgian market or have already established your business in Belgium, you still need to be up to date with the latest laws and regulations.
What do you need to know about the advance tax payments in Belgium?
Belgium published a Decree on Advance Tax Payments by Self Employed persons and companies in March 2012 that defines - when the advance tax payments are due and the tax surcharge rates will increase incase insufficient payments are made.
As per the Decree
Companies and self-employed person must make sufficient advance tax payments on April 12, July 12, October 11 and December 20 of a calendar year.
If the advance tax payments are insufficient, the tax due will, be increased by 2.25% for tax year 2012 (assessment year 2013).
Surcharge for companies is calculated on 103% and for self-employed on 106% of the amount of tax due, deducting immovable withholding tax prepayments, withholding taxes, domestic tax credits and foreign tax credits.
If the amount of the surcharge is below 1% of the tax on which it is calculated or it does not exceed EUR 40, no surcharge is due.
There is a bonus to be enjoyed for the advance payments. The Decree states that credit will be provided for advance payments. For the first advance payment, there is a bonus of three percent of the amount paid, for the second advance payment, a bonus of 2.5% of the amount paid. The third and fourth advance payments have a bonus of 2% and 1.5% respectively. These credits are set off against the amount of tax surcharge due.
Expert assistance can make it easier
As Belgium is known for having an open economy welcoming foreign investors, there can be a number of difficulties when doing business overseas. With the help of a business consultant your business can get the necessary guidance on the overall operational, administrational and executive aspects of your business, like International financial accounting, SAS compliance, regulatory filings, payroll etc. A successful, experienced services provider will have the necessary expertise to minimize the risks involved in your overseas expansion plan, making the world a borderless marketplace.