1 hour ago · Politics · hide · 0 comments

The existence of such an opt-out mechanism seems absurd but is an unfortunately reality in Belgium due to existence of management companies. Let us imagine you are a single independent consultant who expects to realize an annual turnover of EUR 120.000, resulting in a profit of EUR 110.500 (low cost structure). What are your options? I wish to pay my fair share of taxes.You perform your activities as an independent without management company. You will pay EUR 58.822 to the Belgian government (income tax + social contributions), resulting in an effective tax rate of 53,2%. This tax rate would also apply on any additional profit you realize, regardless of the amount. For the underlying calculations, click here. I do not wish to pay my fair share of taxes.You perform your activities through a management company which you fully own. The company's sole function is to act as an intermediary between you and your clients in order to optimize your tax bill. You will pay EUR 42.543 to the…

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