Starting in 2023, your private limited company (BV) will pay significantly more corporate tax. The tax burden will also increase for you as a managing director. Will a BV still be (tax-wise) attractive in 2023, and what are the main factors that will influence this?
Choice.
If you consistently generate a high profit, you'll sooner or later be faced with the question of whether you should incorporate your practice into a private limited company (BV). Whether this applies to you depends on the circumstances. Starting in 2023, several tax changes will make a BV less attractive in many cases, especially for professionals. What should you consider?
Corporate tax
Adjustments.
Corporate income tax (Vpb) will increase in the first bracket from €15 to €19%, while the rate in the second bracket will remain at €25.8%. But that's not all: the first bracket will also be reduced from €395,000 to €200,000. As a result, the profit between
€200,000 and €395,000 taxed at 25.8% instead of 15%.
Usual wage.
The customary salary for you as a managing director will also change. From 2023 onwards, you must receive a salary at least equal to that of the most comparable employment contract. In 2022, you may still be 25% below this (this is the so-called "efficiency margin"), but this margin will expire in 2023. In short: if you can earn €200,000 as a medical specialist in a hospital, the customary salary will increase from €150,000 to €150,000.
€ 200.000.
Joint tax burden
Substantial interest levy.
If you withdraw dividends, you pay tax on them in Box 2, the so-called "substantial interest tax." This rate will remain the same in 2023, at €26.9%. The combined rate, namely the corporate income tax on the BV's profit and the Box 2 tax on the substantial interest profit, will increase from €37.87TP3T to €40.79% in 2023. This applies to the first €200,000 of profit; above that, the combined tax burden is €45.76%.
IB entrepreneurs also pay more
But even if you run your practice as a sole proprietorship or partnership, you will pay more income tax starting in 2023, primarily due to the lower self-employed deduction. This will increase from €6,310 to €5,030 in 2023, ultimately reaching €900 in 2027. Moreover, the deduction can only be offset against a maximum of 36,93%, instead of 40% in 2022. Furthermore, the old-age reserve and the averaging scheme will be abolished. What this means for you in practice depends, of course, on your situation.
What does this mean for you?
IB entrepreneur.
With a profit of €200,000, a sole proprietor pays €77,880 in income tax in 2023, compared to €77,001 in 2022.
Practice BV.
If you have a private limited company (BV), the difference is greater. With the same profit, a typical salary of €48,000, and all profits distributed, you and your BV will pay a combined €73,788 in tax in 2023, compared to €70,443 in 2022. In this example, the BV will still be attractive next year, but with a higher typical salary, this could quickly change.
lie. NB. This outcome is largely determined by the very low usual wage.
Not just good at arithmetic.
With a profit of more than €200,000, the joint tax burden is even higher than for the IB entrepreneur. Tip. If you have a private limited company (BV), you can control the timing of tax payments on the excess profit. Whether or not you should incorporate your practice into a BV requires some calculation, which you can use our calculation tool for.
to use. NB. Pay sufficient attention to non-fiscal arguments.
Due to higher corporate tax rates starting in 2023, a private limited company (BV) will soon become less attractive. Also, keep in mind that you will have to take into account a higher amount of customary wages.
