corona impact op vspss & social contributions
As a result of the coronavirus, our government has already issued some measures.
One of these measures is to help the self-employed when they experience payment difficulties as a result of this crisis. As a self-employed person, you can request a payment deferral for the first two quarters of 2020 from your social insurance fund regarding your quarterly contributions to be paid.
Your application for this 1st and 2nd quarter deferral must be submitted to your social security fund before June 15, 2020. If your application is approved, you will receive a 12-month payment extension for these two quarters. For the first quarter 2020 to March 31, 2021 and the second quarter to June 30, 2021.
Applications for payment deferral are also possible for regularisations of prior periods that expire on 31 March 2020.
If you have already paid your quarterly contribution, applying for this postponement is no longer possible.
deductibility of premiums
How does this payment delay affect the deductibility of your VSPSS (Voluntary Supplementary Pension Scheme for Self-Employed) premiums?
In order to benefit from this personal income tax deduction, you must be self-employed by 31 December 2020 and you must have paid your social security contributions by the end of the year.
Therefore, anyone who has obtained a deferment of payment for his social contributions cannot fiscally deduct these VSPSS premiums in 2020, if the contributions are paid after december 31, 2020!
Social contributions are also deductible in the year of payment. Delaying payment of your social security contributions until after 2020 therefore has a direct (negative) impact on your personal income taxes. So, apply only for any deferment when this is really necessary and if you have obtained any deferment, it is important to pay your contributions before the end of the year.
have you fully optimized you contract?
The maximum amount that can be deducted from your professional income as a VSPSS premium is 8.17%, without the premium being higher than EUR 3,291.30 (income 2020, tax year 2021).
To find out whether your premium is fully deductible as a business expense and you make maximum use of the fiscal scope that you have, you can provide us with your reference income. If you cannot find this reference income on your statement of your social security contributions, you can also provide us with the amount of your new quarterly contribution and the name of your social security account.
We check and inform you whether your contract optimally meets the tax scope you have.
further follow-up
We monitor this very closely of course. If there are deviating or important additional points of view compared to the current vision, we will not fail to communicate about it.
For additional practical information on this topic or regarding further insurance needs, you can always contact us via your usual confidential adviser or via insurance@mawyc.be.We remain available, both by telephone and via our e-mail addresses.
disclaimer & copyright
Copyright © 2020. All rights reserved.
The material contained in this publication is designed to provide general information only.
Whilst every effort has been made to ensure that the information provided is accurate, this information is provided without any representation or warranty of any kind about its accuracy.
Mawyc Insurance cannot be held responsible for any mistakes.
