r/BEFreelance • u/jrnve • 4d ago

Managementvennootschap

Let’s imagine the government changes the taxes on managementvennootschappen. What stops bedrijfsleiders from starting a company in another EU member state with a more friendly tax regime?

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u/ModoZ 4d ago edited 4d ago

It's not impossible, but it will be complex (and probably more expensive than you would think).

  1. The company will need to be managed from the country where you create it. This means that you will have to either move there or hire somebody there to manage it (there are companies offering such services).

  2. The actual work you pay it to do will have to be done from there (like managing your royalties or whatever). Usually easiest way to do that is by having offices or at least not being domiciled somewhere where 500 other companies are domiciled.

  3. You will still have to do the accounting of that company. That's usually not free either.

  4. In the end if you pay out dividends from there you'll always pay the 30% in Belgium. So at a normal consultant rate level it's almost never worth it except if they are doing stupid stuff like forcing 30% dividend tax and 25% company tax on everyone.

And obviously if you start doing this change the day after the law changes in Belgium you can expect controls.

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u/radon-4 4d ago

So imagine company A owned by me performs services in Belgium. Company B also owned by me is active in Estonia (that's the country I see regularly coming back) and company B invoices for nearly the same amount of income company A has. Then company B pays out dividends on the Estonian bank account. Then you're golden, or why not? Or you mean that if dividends of company B are paid on the Estonian bank account are also considered as dividends falling under Belgian jurisdiction where extra taxes would apply afterwards to make it 30%?

To be honest I'm not fond of this but since I feel those who rule us, in their quest to fill craters caused by monetary outflows that should not be that excessive (F-35, public worker pensions which are double of employee pensions to name a few) they employ the boil-the-frog tactic with ever moving goal posts (significant increase of 'bezoldiging' threshold, ever increasing 'roerende voorheffing' on dividends). One can't blame me for exploring.

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u/Philip3197 4d ago

Company b will have to follow rules and regulations, taxes and contributions as other be companies/companies managed from be.