1. Starting your Own Business Local Knowledge 23 April 2013
Christopher Thubron Steven Degraef
Moore Stephens, Brussels

2. Your contacts Christopher Thubron - Partner Steven Degraef
Tel 02 –
Steven Degraef
Tel 02 –
Moore Stephens FS
Blue Tower
Avenue Louise 326 – Box 30
1050 Brussels

3. The financial part – The FIRST decision
Running your business
The financial part – The FIRST decision
Company or individual
Similar approach
You need an accountant

4. Why do you need an Accountant ?
Comply with the laws
Bookkeeping
VAT
Tax return
Social security
Cheaper than DIY ???

5. Choosing an accountant
Interview 2 or 3
Working for you
Difference between accountant and auditor
Tax adviser

6. Questions to ask before appointing an accountant 1/3
Status
Member of an Institute in Belgium
Experience in general and internationally
Communication – understanding as well as language
Build a relationship
Insurance to cover for advice given
Quality control reviews
Fees – if fixed – how is extra work charged

7. Questions to ask before appointing an accountant 2/3
Staff
Language ability
Communication – languages may be OK but understanding may not be
US and UK « separated by the same language » GB Shaw
Accountant should confirm instructions (Calls, Meetings,etc) by
Make sure you understand the replies to your questions
Help you to understand what and why
Be sceptical of promises
Identify staff working on file – replacement for holidays, etc

8. Questions to ask before appointing an accountant 3/3
The one or two persons firm is finished
Subject too wide
New laws and rules almost weekly
IEC discourage loneliness, encourage mergers
May be cheaper but may not be complete

9. Fees – rates – fixed quote – how is additional / extra work handled
Terms – Fees
Fees – rates – fixed quote – how is additional / extra work handled
Engagement letter – what is included – what is extra – must be clear

10. Time is money but make sure there is time for you Don’t waste time
Be efficient – prepare list of questions before meeting / call

11. How will you work together ?
Accountant collects documents or
You take documents to accountant or
Input by accountant at your place or
You do input from your office / home via link to accountant’s programme
Deadlines – fines if missed

12. Filing organised – accountant must show how to do – no shoeboxes
What do you have to do ?
Filing organised – accountant must show how to do – no shoeboxes
Attach written explanations to documents where not clear from document
Provide spreadsheet if possible
Be ready on time – agree deadlines

13. Separate bank accounts Schizophrenic Clarity
Manage your cash
VERY IMPORTANT
Separate bank accounts
Schizophrenic
Clarity

14. Layout – what do you need to know ? Frequency Currency
Financial reports
Layout – what do you need to know ?
Frequency
Currency

15. Exchange of information
Tax returns
Belgian
Elsewhere in the world
Exchange of information

16. Rights and duties of tax payer and adviser Data mining
Controls
Tax
VAT
Social Security
Preparation
Rights and duties of tax payer and adviser
Data mining

17. UK or other foreign companies
Handle with care
Permanent establishment
Economic centre of activity

18. - Tax, VAT, Social Security and other important matters
Steven Degraef
- Tax, VAT, Social Security and other important matters

19. Two systems exist in Belgium
Deductions
Two systems exist in Belgium
A lump sum (a variable percentage of income)
Actual charges (unlimited if substantiated)

20. The lump sum system : Deductions Income after social security Lump Sum
Allowance per tranche
Total Allowance ……
28.7 %
10 %
5 %
3 %
0 %
0,00
1.621,55
2.178,55
2.551,05
3.900,00
3.900,00 (MAX)

21. The actual charges require accounting of all expense invoices
Deductions
The actual charges require accounting of all expense invoices
Conditions
Related to professional activity
proven by supporting documents
Payment proven – possibility for forfait
Made to earn or to maintain taxable income

22. Social Security Calculation of professional income: Gross income Less
Social security (amount actually paid !)
Including Pension Libre complémentaire
Income after social security
Actual expenses
Or lump sum allowance
Taxable income before allowances

23. Limited to 75% of the amount
Car
Car costs:
Petrol
Parking
Maintenance
Taxi
Limited to 75% of the amount

24. Depreciation on assets IT equipment PC = 3 years Car = 5 years
Other assets
Depreciation on assets
IT equipment
PC = 3 years
Car = 5 years
Furniture

25. Heating, utilities (professional part) Telephone, mobile phone, post

26. If allowed in rent contract
Deductible for tax
If allowed in rent contract

27. Examples of other actual expenses
Training, seminars
Professional travel office suppliers, IT supplies documentation
Professional insurances
Restaurant : deductible for 69%
Representation costs : deductible for 50%
Professional clothing: can only be worn at the work place
Bank charges
Local taxes

28. Examples of non deductible expenses
Taxes
Fines (other than parking fines)
Non professional clothing : which can also be worn outside of the work place
Non professional expenses

29. Questions?

30. Your contacts Christopher Thubron - Partner Steven Degraef
Tel 02 –
Steven Degraef
Tel 02 –
Moore Stephens FS
Blue Tower
Avenue Louise 326 – Box 30
1050 Brussels
Disclaimer
These slides are for information to support
the presentation on 23 April 2013 and do not
constitute advice. Appropriate specific advice must be taken before taking any action.