Here are five practical tips:
Declare Your Professional Expenses
As a self-employed person, you are subject to personal income tax on your net professional income (that is to say: your gross income minus your professional expenses). The critical question to ask is: what expenses can be considered professional expenses?
Many professional expenses are fully tax-deductible. This is the case, for example, with rent or mortgage interest on your desk, office equipment, social contributions, and premiums for the free supplementary pension.
Pay Attention To “Mixed Spending.”
Other charges such as travel costs to and from your place of work, business gifts, or restaurant costs are only partially deductible.
“Mixed expenses” (such as water, electricity, and internet) are only prorated deductible. Please note: you must be able to justify these expenses.
Subscribe To Professional Insurance
The premiums you pay for your guaranteed income insurance are tax-deductible. Concretely, they reduce your net professional income and, consequently, lower your taxes and social contributions.
In addition, this same tax advantage also applies to the premiums for the free supplementary pension and the individual pension commitment.
Opt For Meal Vouchers
Under certain conditions, meal vouchers are considered social benefits with tax exemption.
So there are different ways to optimize your income, and you have to know them.
Ensure Optimal Management Of Your Professional Withholding Tax
If you are reimbursed with a bonus or dividends, you pay a withholding tax on these sums as an independent business manager.