Eternity Law International Ready-made company in Belgium for sale

Ready-made company in Belgium for sale

Published:
April 15, 2020

What is included:

  • Ready-made company in Belgium,
  • Local bank account,
  • Legal address

Cost: on request.

A company is considered local (resident) if its headquarters or registered office is in Belgium. These are companies run from Belgium.

Local companies pay taxes on income generated domestically and abroad. The income of foreign companies is taxed as foreigner’s income. Local representative offices of foreign companies are taxed according to the taxation rules of subsidiaries.

Companies can deduct all business expenses when calculating taxable income. To do this, you must follow the general rules. These rules apply to the taxable period, the availability of necessary documentation, the legality of expenses, etc.

Starting in 2020, the standard corporate income tax rate is 25%. Previously to 2020 the rate was 29%.

Small and medium-sized enterprises are taxed at a rate of 20% from the first 100,000 euros of income. However, such a privilege is possible only subject to certain rules.

Among the main ones are:

  • compliance with the legislative definition of a small / medium-sized enterprise;
  • legal entities do not have more than half of the shares of this company;
  • the company pays at least one manager at least 45,000 euros per year, except when there are several managers and their salary exceeds the company’s profit.

It is worth noting that the corporate tax rate applies to both subsidiaries and branches.

Until 2020, there was a surplus income tax in Belgium.

This tax is not typical for many countries, and in simple words, is an addition to corporate income tax. The tax with a rate of 2% was levied on the amount of payment for the company’s profit tax, but not on all profit.

As a result, the actual income tax rate was 29.58%.

Since such a tax not only added a hassle to the reporting, but also did not carry a strong semantic meaning, it was canceled from the tax year 2020-2021, and entrepreneurs since there only pay income tax at rate of 25% or 20%.

Most goods and services are subject to Value Added Tax. VAT applies to digital goods and services, but does not apply to export activities.

The standard VAT rate is 21%. However, there are also reduced rates, namely 12%, 6% and even 0%.

Imports of consumer goods in Belgium are subject to the same VAT rates as domestic goods.

The accounting department of the company must compile quarterly, annual financial reports and provide declarations to the tax service. Contact us for more information.

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