Practical guide: Starting out as a freelancer brings with it many questions, including how best to manage corporate tax.
1. What is corporate tax?
Corporation tax is the tax you pay on your company's profits. As a start-up freelancer, you need to understand well how starting freelancers can benefit from the standard rate of 25%. In Belgium, a standard rate of 25 %. But a reduced rate of 20 % on the first €100,000 profit. And yes, at Bookies, we make sure your company meets these conditions so that you benefit from this as a starting freelancer.
2. The reduced rate - when does it apply, and why is it relevant?
The reduced rate (20 %) almost always applies to management companies, provided they meet these criteria:
- You are a small company (defined ceilings around turnover, employees or balance sheet).
- At least one company director will receive a certain minimum wage - until 2025 it is €45,000, rising to €50,000 gross per year from 2026. However, there is an exception for start-up companies in the first four years; the wage condition does not have to be strictly adhered to then.
- Your company is not a financial company (no large investments of >50 % of equity).
- More than 50 % of the shares are held by natural persons.
At Bookies, we proactively check whether you meet these conditions and keep you informed of the thresholds. That way, you enjoy the full benefit of the reduced rate, up to €5,000 in savings per year. Almost all starting freelancers enjoy the reduced rate of corporation tax.
3. Prepayments - what do you need to know?
Advance payments are advances on your corporation tax. They are mandatory if your company is older than three years-you risk a tax increase otherwise.
But good news for starting freelancers:
The first three financial years are you not obliged to make advance payments, and you won't get tax increment either.
At Bookies, we look together at when it is best for you to pay in advance (or just barely). That way, we minimise unexpected or unnecessary costs.
4. Specifically: deductions, professional expenses and disallowed expenses
Professional fees (deductible):
- Your workspace (partial office rent or depreciation).
- Computers, software, tools or licences you use for business.
- Training or coaching related to your work.
- Telephone or internet costs (business part).
- Travel and transport costs (train, bicycle allowance, mileage allowance).
Rejected expenses (not deductible or only partially deductible):
- Car expenses: you can usually only deduct part of them, depending on CO₂ emissions or private use.
- Business lunches or dinners: maximum 69 % of the cost is deductible.
- Business gifts: 50% deductible, 50% rejected
Disallowed expenses: the part that is not deductible is added to your profit and you pay corporate tax on it. Every company has a part disallowed expenses in corporate tax. So too you as a starting freelancer!
5. Pension savings & other tax benefits - explained in concrete terms
- IPT (individual pension commitment through insurance): company pays contributions, for the benefit of your future. Your company can book this as a professional expense; you build up a net pension.
- Liquidation reserve / VVPR bis: if you want to distribute profits via a dividend, it will be at a reduced withholding tax rate (15 % instead of 30 %).
Bookies is happy to guide you through these choices: what suits your ambitions and which tools will benefit your future?
6. Brief overview
| Theme | Concrete info | How does Bookies help you move forward? |
|---|---|---|
| Rates | 25 % standard, 20 % up to €100,000 for SMEs | We check conditions & make sure you fall in |
| Minimum wage | €45k (until 2025), €50k from 2026; starters exempt | We plan your remuneration optimally for tax purposes |
| Prepayments | Not mandatory first 3 years, but mandatory later; prevent infomercials (6-9 %) | Together we determine right timing & amounts |
| Professional fees | Concrete deductions: office, software, training, mobile, travel | We book everything correctly in your file |
| Disallowed charges | 50% on gifts, 31 % on restaurant charges,... | We guide your limits and report correctly |
| Pension tools & dividends | IPT, VVPR bis give tax advantage | We advise & implement for your future |
Finally, your peace of mind with Bookies
You don't have to be blinded by "tax breaks that can". At Bookies, we take a concrete, realistic and client-oriented approach. We attend annual refresher courses, stay abreast of all legislative changes and apply them proactively-always with your tax and financial benefits in mind. Starting your own business also means being well prepared for all tax reports and obligations, including corporate tax for the starting freelancer.
With Bookies by your side, you as a freelancer will start off with peace of mind, efficiency and a secure tax base.
Planning to start? Let's talk!
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