Tax for self-employed persons

If a business is operated in an individual’s own name rather than as a company, the entrepreneur’s profits will be subject to personal income tax.

A company’s taxable profits are determined in almost the same way as the taxable profits of a self-employed person’s business, but the rates are different. In the case of personal income tax, the tax rate may be as high as 50% whereas the maximum tax rate for corporation tax is 33.9%. In certain cases, the rate may be even lower. In many cases, where substantial profits are involved, it is best to establish a company.

More information about personal income taxExternal link(French-Dutch)

More information about corporation taxExternal link(French-Dutch)

This tax is calculated once a year following submission of the tax declaration, which includes all taxable income (from real estate, movables, professional activities, etc.).