Tax Pre-Payment Plan
- Avoid high fines and potentially benefit from a tax reduction
- Keep your cash flow intact – spread repayments at a fixed rate of interest
- Apply without any origination fees or administrative hassle
Set up your tax pre-payment plan before 8 April
Want to avoid a tax increase by paying your taxes upfront this quarter? If so, apply for your tax pre-payment plan before 8 April. Choose how much you want to pay in advance and we’ll transfer it to the tax authorities on 10 April. You can then spread the repayments over 12 months.
What are tax pre-payments?
Paying taxes in advance is essential for business owners wanting to avoid being hit by a fine from the tax authorities (while benefiting from a tax reduction). It is a compulsory advance payment on your final tax bill: you need to estimate your income in advance and pay tax on it.
The earlier you pay, the greater your tax benefit. The only thing is, where do you get the funds to pay taxes for a full year when you’ve yet to earn that money? That’s when a tax pre-payment plan really proves its worth. Tip: Did you know you can deduct the costs involved from your taxes?
Who can make tax pre-payments?
By making a pre-payment, you not only avoid paying more tax (fine), you also get a tidy discount on your taxes (tax abatement). That is, as long as you pre-pay enough tax on time.
If you pre-pay enough tax on time, you avoid having to pay a penalty on your final tax bill. Unfortunately, unlike sole-trader businesses, you are not entitled to a tax reduction.
If you’re a start-up business, you’re basically exempt from tax pre-payments for three years – the tax authorities won’t fine you if you don’t make these payments. Should you nevertheless decide to pay your taxes upfront, you’ll get a tax reduction (tax abatement) for your sole-trader business. So even as a business starter, it’s definitely worthwhile starting to make pre-payments from the outset. Otherwise, you’ll miss out on a tidy tax break.
More information about the KBC Brussels Tax Pre-Payment Plan
- You don't have to worry about pre-paying your tax on time. We do it for you. That ensures you avoid the possibility of being hit with a tax surcharge by the tax authorities. You may even be able to claim a tax abatement or tax relief as well, if you’re self-employed or a liberal professional.
- You repay the financing in instalments over a period of 12 months.
- You keep your own funds free for other purposes and your cash resources intact.
- The interest you pay for the financing is tax deductible.
- You avoid a tax surcharge from the tax authorities.
- Your pre-payments are made more feasible.
People regularly forget to pay their tax in advance. However, correct and timely payment brings many financial benefits.
With the KBC Brussels Tax Pre-Payment Plan for Business Purposes, you can pay your taxes upfront without upsetting your financial equilibrium. Plus, you don't have to worry about pre-paying your tax on time. We do it for you.
If you’re self-employed or a member of the liberal professions and pay 106% of the taxes you owe in advance, you’ll receive a tax abatement or tax relief from the tax authorities. In other words, a reduction in the taxes you owe.
Exception: newly (full-time) self-employed persons, liberal professionals and small companies (under specific conditions) are exempt from a tax surcharge in the first three years after being established. They can, however, receive a tax abatement even if they don’t make payments in advance.
Companies are never entitled to a tax abatement if they’ve paid too much upfront.
For financial years that coincide with calendar years, pre-payments will have the following benefits:
It can be done in three ways:
- Paying it yourself via MyMinfin.be
- Paying it yourself by credit transfer
- Having it done by a third party (e.g., through the KBC Brussels Tax Pre-Payment Plan)
You can find more information on the FPS Finance website.
It is always difficult to determine how much you should pay in advance. Determine and calculate the amount you want to pre-pay this year based on an estimate of your expected income.
Last year's results might be a good place to start. Using that amount, you should be able to estimate your income for this year and calculate the taxes that you will have to pay.
If it's the first time you've set up a sole-trader company as a full-time self-employed person or liberal professional, the good news is that you're exempt from making pre-payments for three years, during which time the tax authorities won't impose any tax surcharges.
If you've set up a new company that meets the definition of a small business under company law, you qualify for this same tax break.
When you’re self-employed, a liberal professional or run a company, you receive a letter from the tax authorities in the early months of the year, offering you the opportunity to pay your taxes upfront. In principle, you are under no obligation to do so, but if you don’t pay enough or anything in advance, you risk being hit with a penalty in the form of a tax surcharge on the final tax bill.
Apply for your tax pre-payment plan in KBC Brussels Touch, KBC Brussels Mobile or the KBC Brussels Business Dashboard. You can also ask Kate, your digital assistant in KBC Brussels Mobile, to arrange a new credit facility or tax pre-payment plan for your business.
* Decisions on business credit facilities of up to 150 000 euros should be available within 24 hours of applying online or by appointment, provided your application is complete.
The rates and how the tax relief or tax surcharge is calculated can be found on the FPS Finance website.
Percentages and method of calculating tax relief:
- For the self-employed and liberal professionals
- Companies are not entitled to this type of tax relief
Rates and the way tax surcharges are calculated:
Got a question or require more information?
Find the answers to all your questions on the FPS Finance website: