Income optimization

Have you set up a company? Then your operating profit is liable to corporation tax, and your salary as the person running the business or a manager is liable to income tax.

Optimizing your pay means in the first instance that you will pay less in tax and social security contributions - a statutory right but which, nevertheless, is subject to certain restrictions.

Direct income

Do you pay yourself a salary, a bonus or dividends as a self-employed person running a business? Then you have to pay income tax: a deduction from your pay in the form of a prepayment against the final tax bill for your professional income. How to avoid headaches? Outsource the management of your income tax to Partena Pay'n People!

Be careful: the tax treatment of the salary of people running a business is slightly different from that for employees. 

Order our Tax Guide for a clear answer to all your questions.

Indirect income

Business expenses

As a self-employed person, you pay personal income tax on your net professional income. That is your gross income minus all your business expenses.

Which expenses are considered as business expenses?

• Expenses directly related to your professional activity (mixed business/private expenses are only eligible for a proportional tax deduction).
• Expenses whose authenticity and amount are clearly substantiated.

which were incurred in the year in which you are claiming them or which have the character of a definite and established debt, which are posted at the end of the year.

Some business expenses are fully deductible. Just think of rent or mortgage interest on your office, stationery, social security contributions, supplementary pension premiums, etc.  Other costs such as travel to and from work, business gifts and restaurant expenses are only partly tax-deductible.

Other indirect income

As a self-employed director, you have other ways to optimize your pay. Just think of your guaranteed income insurance. This provides a replacement income as from the first day of incapacity for work. Since the premiums are tax-deductible, you also reduce your income. The result? Less tax and lower social security contributions. Under certain conditions, meal vouchers are considered as tax-exempt benefits. 

Income carried forward

A supplementary pension  and a personal pension commitment  are attractive supplementary insurance policies that are particularly advantageous from the tax viewpoint for the self-employed. Because you can deduct the premiums from tax, at the same time as reducing your net professional income.

You will notice: there are all sorts of ways of optimizing your income if you are running a business. Don't be deterred by the complexity of the subject. With the experts from Partena Professional you will make the right choice for your situation!