Traditionally, it’s time again for:
The 2022 year-end tips (click for download)
This blog lists the main tips as well as to-do’s. In addition, we look at the main changes for 2023 and beyond. Don’t feel like reading through a blog or 35 pages of tax tips? Then call Ben for a customized consultation.
Take advantage of the WKR (for DGAs with a B.V.)
As an employer, you have a free allowance of 1.7% of gross salary (2022) to provide untaxed to staff employed by you. If you are a DGA of your own B.V. and have not yet used the free space, you may be able to make an untaxed distribution of up to €2,400.
Pay a co-payment to your partner
Does your partner also work in the business and has not yet received adequate compensation? In many situations, it is wise to still pay out a reward of at least €5,000. This is because of tariff benefits and cashing in tax credits.
The small business deduction (KIA).
Annually, an entrepreneur can claim an additional deduction of 28% on the investment value. This applies to investments > 450 euros and a total value of investments of €2,401.
From a total investment of €59,940, this deduction no longer increases. Above €110,998, this deduction decreases. Some investments such as passenger cars are excluded from the KIA.
NOTE1: Random depreciation of 50% is available for investments made in 2023.
NB2: Are you undertaking a major investment that will be completed in 2023 and exceeds ~ €60,000? If so, it may pay off to make an advance payment as early as 2022.
NOTE3: Are you a starter and have a sole proprietorship? Then random depreciation is already possible.
TO DO BEFORE THE END OF 2023
Preliminary tax assessments in order?
To avoid tax interest on taxes 2022, apply for an accurate 2022 preliminary assessment before May 1, 2023.
Payments to third parties (non-entrepreneurs/staff)
It has been around for a while but as of 2022, employers are really required to send a so-called IB 47 statement on people who have received a payment from them but are not business owners or employees.
Not doing an IB 47 statement can, in the worst case scenario, cause you to have to pay the amount paid out to the Internal Revenue Service because they will then claim that you should have deducted payroll taxes.
Private addition VAT
Do you file your own sales tax return? Do not forget the private addition for VAT in the month of December or the 4th quarter.
Do you have excess money or assets and children or other loved ones? Then you can still get rid of this untaxed, without the recipient paying tax on it. Your own children may receive an amount of €5,677 untaxed. Other individuals have an exemption of €2,274.
The so-called “jubelton” (a gift exemption of €106,671 for a private home) will be abolished. In 2023, the exemption will still be €28,947 and in 2024 it will be completely abolished. By the way, it is not necessary for the beneficiary to be a child of yours; non-owned children can also benefit from this exemption.
THE MAIN CHANGES IN 2023
Corporate income tax (VPB) in 2023 and dividend in 2024
Where B.V.’s in 2022 may still enjoy a VPB rate of 15% up to the € 395,000 profit, this changes radically in 2023. The rate goes to 19% and the first profit threshold drops to €200,000. Above this profit threshold, the VPB will be 25.8%.
The tax rate in Box 2 (dividends) remains at 26.9% in 2023. In 2024, a bracket system will be introduced and the tax on a dividend distribution of < €67,000 will be 24.5%. For benefits above that, the AB levy is 31%.
MRB increase and BPM exemption abolished in 2025
Although 2025 is still far in the future, you could take considerations now in the context of your fleet. Indeed, starting in 2025, the BPM exemption for entrepreneurs will disappear and the MRB will also increase. Therefore, the purchase price of a new van will be able to be significantly higher starting in 2025.
Transfer tax to the 10.4% mark
Currently, the transfer tax is still 8% unless you own your own home (2%) or you are a starter buying a home (0%). Starting in 2023, the standard rate of 10.4% increases. As the date of levy, the date of transfer is leading.
KM allowance of 19 ct. to 21 ct. (2023) and 22 ct. (2024)
After years of complaining, the government is generously accommodating commuters. This by increasing the KM fee by 2 to 3 ct. per KM to increase.
There is no obligation to fully utilize the untaxed compensation, but it is obvious that these employees do expect their compensation to increase to the new amounts.
Income tax in 2023
Within income tax, there is some shuffling with percentages, brackets and tax credits. Taxable incomes above ~ €70,000 will “lose out slightly.” In 2022, the mortgage interest deduction will still be limited “only” to 40%; in 2023, the deduction will be limited to 36.93%.
If you have questions about this, or anything else entirely, don’t hesitate to call 06 121 39 865. Happy to be of service then.