Are you a self-employed person or a company? Then advance payments are not mandatory. You choose whether to make them or not. However, it can be fiscally interesting better not to wait until the end of the year (or the year after) to pay everything in one go.
In this article, we explain exactly:
It is in fact a kind of down payment on taxes you expect to pay on your income for the current year. You estimate the exact amount of each advance payment based on the profits you expect to make in the current year. An accurate estimate is therefore very important:
It is therefore useful to get the advice of an accountant or tax advisor.
You can pay this down payment 4 times a year.
You benefit from the most favourable rate if you pay the highest possible advance in the first quarter.
However, if you have recently started a self-employed activity as your main activity, or you have a small company that has just been set up, the conditions are different. You do not have to make any prepayments for the first 3 financial years. This is because you do not run the risk of a tax penalty.
Nevertheless, many newly self-employed make these payments to benefit from a bonus (not available to companies). You will find more information on this below.
"}},{"componentType":"paragraph","title":"Possible changes (not yet voted)","richBody":{"value":"The government has the intention to remove tax increases for the self-employed (not corporations) where no or insufficient prepayments have been made. It also has the plan to introduce a fifth prepayment period as of tax year 2027 (income 2026). There is a bill in the Chamber, but it has not yet been voted on and the measure is not yet in effect.
"}},{"componentType":"sectionTitle","title":"Tax increase and benefits of upfront payments"},{"componentType":"paragraph","richBody":{"value":"As a business owner, you can still claim a bonus later, but you risk a tax penalty if you pay too little or nothing in advance.
The tax increase rate amounts to 6.75% (for companies) and 4.50% (for independants and liberal professions) for the assessment year 2027 (income 2026).
The tax authorities do this in steps:
For the assessment year 2027 (income 2026), the amount of these benefits for companies is equal to the sum of the following calculations:
The average of these percentages is 6.75%.
For the assessment year 2027 (income 2026), the amount of these benefits for independants and liberal professions is equal to the sum of the following calculations:
The average of these percentages is 4.50%.
Thus, if you have made sufficient advance payments at the right time, the resulting benefits should cancel out the tax increase.
Do you pay more than the necessary (and can’t get all of it offset)? Then the excess is repaid through your taxes.
"}},{"componentType":"sectionTitle","title":"Tax advance payments: some practical tips"},{"componentType":"paragraph","richBody":{"value":"For the 2027 tax year (2026 income), here are the deadlines for businesses whose financial year coincides with the calendar year:
These are the deadlines by which the payment has to be received by the FPS Finance. Since it sometimes takes several working days for the payment order to appear on the correct account, it is preferable not to wait until the last day to do it.
"}},{"componentType":"paragraph","title":"Paying via MyMinfin","richBody":{"value":"By making advance payments online with MyMinfin (link in Dutch), you automatically pay the right account number with the right structured communication.
"}},{"componentType":"paragraph","title":"Paying via bank transfer","richBody":{"value":"Do you prefer to pay by bank transfer? In that case, use:
A third party (such asa bank in the case of a financing agreement), can also make the payment on your behalf with the appropriate structured communication.
Finally, consulting a chartered accountant or tax advisor is the best way to ensure that your tax burden is spread in the most effective way over each quarter and that unpleasant surprises are avoided.
"}},{"componentType":"highlight","title":"Don't have the funds yet to make your prepayment?","richBody":{"value":"No problem. With ING's financing agreement for advance payments, we take care of everything for you. In principle, you can deduct the interest on your loan as a business expense.
"}}]},"legalZone":{"flexComponents":[{"componentType":"paragraph","title":"Disclaimer","richBody":{"value":"This article is for informative purposes only and the information set out herein may change with time. We therefore recommend that you always reference specific regulations and requirements with the competent authorities for the latest information. Additionally, we advise that you seek professional advice on a case-by-case basis before making any decisions. Please note that ING Belgium SA/NV cannot be held liable for any decision taken on the basis of the information provided.
"}}]}}}