Belgian tax law offers a fair treatment of the incomes and costs or losses resulting from several activities:

Costs exposed as self-employed are deducted from my salaries as an employee.

Business losses of a self-employed are deducted from the salaries the same person receives as an employee. Those costs or losses from a self-employed activity are also deducted from the severance pay received by a former employee.

Indeed, the severance pay is considered as a compensation within the meaning of article 23 of the Belgian Income Tax code. So that, pursuant to paragraph 2 of the same article the business losses of any activity are deducted from the income resulting from other professional activities.

We assist in determining whether such losses are tax allowed and how to structure those professional activities in a tax and social security optimized way.

The allocation of losses on the remuneration of an employee will thus result in reducing the tax burden of the tax payer.