NeveneffectOPOost-Vlaanderen•

"Tax on movable property” (roerende voorheffing, précompte mobilier) increased from 25% to 30% on January 1st 2017.

Corporate tax for small companies is lowered from 25% to 20% for gains under €100 000 but as mentioned, if you take that money out of your company, you need to pay an extra 5% tax on movable property.

But, to enjoy the lower tariff of 20% you need to give yourself as CEO a minimal wage. That minimal wage was raised from €36 000 to €45 000. This €9000 extra falls in the highest tax bracket of 50%. Which means the tax cut for small companies and entrepreneurs is compensated twice.

Next to all this, the tax on transactions of stocks and bonds is raised from 0,27% to 0,35% on your property per transaction (an increase of 30%), which the author states seems small, but counts up really fast if you trade a lot.

9
-RickSean-Wallonia•

Looks like I'll pay 4500EUR more taxes, this shit is ridiculous.

5
Jathrek•

Just a small something about the CEO's minimal wage. It must be either above €36000 (or your new number) OR above the company's profit (and it's quite easy to get one of the two, unless you might indeed be trying a bit too hard to get a low tax rate). Unless that has changed as well?

Also, another one of the big change made by Di Rupo is the increase of the tax when the company is closed down, which went from 10% to 25%. I know one or two persons who decided to close down their companies just before the change was applied.

But at the same time, they also put in place VVPR bis, which can reduce the tax rate for dividend starting the 2nd exercice.

3
-RickSean-Wallonia•

So it's now more financially interesting to liquidate the company than take dividends ? Isn't that completely stupid ?

1
Jathrek•

Well, no, at that time, it was both interesting to take some dividends while the company was alive and to take the benefits when the company was closed down.

When they increase the taxes for both of these operations, a lot of people who had money in the company (with the idea of taking it back when the company was closed) decided it was better to close down the company, if needed by creating a new one afterwards to continue working.

In the current situation, if you've access to VVPR bis, it's nearly as good as getting the money when closing down the money. There's not enough differences between the two to start playing closing/creating new companies once in a while.

1
-RickSean-Wallonia•

Ok thanks for the explanation !

1
Freegeeks•

when I say all the time that our current govt is just another tax and spend govt i get downvoted by the lefties because the NVA is only there for the rich. Taxation in Belgium is ridiculous for basically everyone. The problem is the govt expenditure

6
SnokhengstWorld•

You think you get downvoted by "the lefties" because you're bashing on NV-A?

8
Freegeeks•

not bashing, just stating that NVA is not the liberal party they pretend to be. When you say this, some people (lets call them the lefties) get offended because the NVA can and only will be a neo-liberal party. I guess they feel offended that in reality NVA (and OVLD for that matter) are not different then all the other major parties. People should recognize NVA and OVLD for what they are, big govt tax-to-death-and-spend what we not have parties.

4
SnokhengstWorld•

Sorry for derailing the topic like this, but I'm feeling especially discussionlike today.

When you say this, some people (lets call them the lefties) get offended because the NVA can and only will be a neo-liberal party.

How do you know that's what's happening, instead of NV-A supporters who think the government/NV-A is doing a good job, and disagree with you? (either way, people shouldn't downvote because they disagree)

10
Freegeeks•

because the people in these kind of discussion clearly have a leftish slant.

-1†
Jathrek•

I've started, for one or two years now, to believe that the economical situation is now such that it does not really matter anymore (or at least, much less than before) if the government is left or right-wing.

There will be less and less money available in the future and cuts will be more and more unavoidable, as it was the case for the past years.

And we're barely at the beginning of a huge increase of the pension costs, so it's just go worse and worse, faster and faster.

5
Freegeeks•

the problem is that there are zero structural reforms to do something about govt expenditure. All they are doing is some marginall stuff (de kaasschaafmethode).

4
BlinwarAntwerpen•

The media will attack you when you cut costs, it will praise you when add costs. What do?

4
crikke007Flanders•

There is plenty of money avaible, just not for the goverment. I don't know who said it but "Belgium is a poor club with rich members". Only with the hard cash on the bank accounts alone we could erase all debts in a second and still have our homes, cars, stocks, bonds ... . Belgians like to spend money on everything except government.

0†
Freegeeks•

really? the amount of taxes we all pay prove you wrong on all accounts. We all pay a shitload of taxes and our govt never has enough. With taxes well over 50%, its frigging incredible that the govt still ends up with a deficit. The shitty public services for all those taxes are just an added bonus

8
crikke007Flanders•

The amount of taxes is pure historical and come from A. Massive spending in the past e.g. Wafelijzer politiek and B. The governmentbonds in the past to pay these spendings. Those bonds are mostly in Belgian hands so per default we have debts towards ourselves. A zero operation.

And the taxnumber is saying nothing. The problem is our massive black economy ingrained in our culture.

We have an economy of around 400 billion. And a black economy around 290 billion. If overnight the black economy all turned white we could lower our taxes to 35% hooray ! But the amount of collected money would still be the same. The percentage alone is just a stupid number. You always have set it off towards the real monetary incomes.

4
Jathrek•

Not really, no...
Some people really wishes for this to be the case, but most of the time that's just based on wild guesses.

The fact that the public budget of Belgium was at more than 53% of the GDP of the country in 2016 should be enough to wake up.

2
CXiiiv•

With the increasing number of people living in poverty I find that hard to believe.

1
State_of_EmergencyWest-Vlaanderen•

Well there is something strange going on. By some measures we are even the wealthiest europeans in private wealth

Our wealth is also more equally devided than Switzerland or Denmark

So this means that the average Belgian family should be very wealthy compared to their peers in other European countries.

Which would partially explain why we have high consumer prices

But the Belgian state has a way higher debt than most European countries.

1
groovesheep•

Isn't there a mistake in the numbers ?

The tax rate doesn't go from 25% to 20%. On 100K (due to the multiple tax levels : 24.25%, 31%, 34.5%), it goes from paying 29.66K€ to paying 20K€ in taxes. If you make more than 100K€, the actual rate is even higher.

If indeed you have to pay yourself 9K€ extra (so 4.5K€ more in taxes + social security) and as mentioned the RV/PM went from 25% to 30%, so you end up paying about the same (slightly less probably). But not more.

I'm not sure what would happen if you make more than 100K€. Is it 20% on the first 100K and then 29% on the rest ?

5
MaoZijnBong•

When even the capitalist complains about the current right retardation, you know they fucked up real good!

But it's all the fault of socialists right?

3†
Jathrek•

I'm not even as right as a capitalist, but I'm still satisfied with the decisions (I'll just need some time to really calculate the impact of the latest ones).

3
KjarDolBelgium•

No, of course not. It's the fault of the "socialists" AND of the brown people and of the unions.

(/s)

-5
HLNplebs•

It's simple: start a company? Move to another country.

2