Easiness to justifyFrequency1x per month
The company director’s remuneration is fully deductible.
When your company, a BV, SRL, NV, SA, or any other form of legal entity, pays its director (you), it is a deductible expense.
This remuneration will be 100% deductible.
Withholding tax and social security contributions
The director’s compensation will be subject to withholding tax, which will generally be declared (on FinProf) and paid by the company (full details here on the SPF/FOD website). The amount of the withholding tax depends on your personal situation (status, dependent children, etc.).
As a director, you therefore generally receive a ‘net’ remuneration: you will no longer have to pay tax on this remuneration.
As a director again, like all independents, you are also required to pay social contributions, which are calculated on the basis of your remuneration as an executive.
Directors’ compensation should be the subject of a 281.20 form, which must be submitted to Belcotax-on-web by 1 March of the following year at the latest.
What if you are a natural person?
If you are a self-employed natural person (eenmanszaak / personne physique) and you transfer yourself money (by bank transfer, for example), this does not count as a business expense: you are not dealing with two separate entities. It is merely a transfer of funds.
As a natural person, you cannot “pay yourself a salary”, at least from an accounting point of view. It makes no sense.
That said, you can of course transfer funds to another bank account, without the slightest worry 😉.