There are several aspects to consider when setting up a company. In addition to drawing up a financial plan, drawing up articles of association and a visit to the notary, tax planning is necessary for a start-up company. Usually, start-ups often face high start-up costs and investments. To finance these costs, numerous support measures have been set up by the government to encourage private individuals to invest in these start-ups.
As a parent, do you want to give your son or daughter a helping hand to help make his or her dream come true? Or do you believe in a start-up company? Our advisors like to think along with you about tax optimisations from the start of a company.
Support measures
- Tax shelter for 'starting' companies
If you invest as a natural person in a start-up company following an incorporation or a capital increase within four years after incorporation, you enjoy a tax reduction of 30% or 45% on the invested amount. In exchange, you get shares instead. There are many conditions attached to the tax reduction and our advisor will be happy to help you so that you can still see the trees through the woods!
- Exemption from withholding tax on interest on loans
When it is opted to issue a loan to finance a crowdfunding project of a start-up company, and this via a recognized crowdfunding platform, you as a natural person can benefit from a (partial) exemption from withholding tax on the interests of the loan concerned ( with a minimum term of four years).
The interest received annually under this loan is exempt from withholding tax. However, this exemption only applies to the first tranche of EUR 15,830 (assessment year 2021 to 2024).
- Win-Win Loan
The win-win loan concerns a subordinated loan that can be provided by a natural person to an SME. In exchange for the subordinated loan, you as a lender receive an annual tax advantage of 2.5% on the outstanding amount of the loan in addition to an interest. This is a tax credit, so even those who do not have to pay taxes can benefit from it.
And what if the company cannot repay your loan? Then as a natural person you enjoy a one-off tax credit of 30% on the outstanding capital. This 30% was temporarily increased to 40% in the context of COVID-19 for loans taken out from March 16, 2021 and until December 31, 2021.
- Friends share
In February 2021, the friends share was created. On the basis of this, as a natural person who invests in SMEs (cf. the European SME definition and both located in the Flemish Region), you can enjoy a tax credit. This tax credit amounts to 2.5% of the invested amount, and you are entitled to it for five years.
- Withholding tax exemption for start-ups
In addition to the aforementioned measures that provide a tax advantage to persons who invest in companies, there are also some favorable measures for these companies themselves. For example, if you as an entrepreneur start to hire employees, the legislator provides for a support measure granting an exemption of 10% (20% for micro-companies) from the withholding tax on the remuneration of the employees. This exemption can be applied for 48 months, from the first day of the month following the first registration in the CBE.
- Exemption from employer's contributions for the first employee
As an entrepreneur, you can also appeal to the target group reduction for the recruitment of the first employee. On the basis of this favorable measure, you as a new employer can enjoy a (complete) exemption from the employer's contribution for the first employer. A reduction is also allowed for the following five employers, but not a full exemption. During the first 13 quarters of the employment period of these employees, a reduction of between EUR 450 and EUR 1,550 can be enjoyed
HOW OUR ADVISORS CAN HELP YOU
The above measures can give your company a boost and help you achieve your dreams. In addition, these support measures also spread your risk as an investor. Our advisers are therefore happy to look at the possibilities and possible tax optimisations together.
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