Converting zzp into bv - preferable way

[NNabil]

Hi All,

 

Sorry for writing in english! I copied a translation after this text :)

 

I just started as a freelancer working as a zzp, I already did some work with one customer and sent the first invoices... Now I realize that it will be more advantageous for me to convert into a bv, especially if I can send the next invoices to my same customer as a bv and not as a zzp (paying corporate tax instead of income tax in box 1)

 

I have 4 questions:

 

1- Will I be allowed to file the next invoices (for the same project and the same customer) under the tax return of the new BV?

2- If 1 is possible, will it matter if I convert my zzp into a bv or create a complete new bv?

3- If converting is necessary, will I pay any tax on this conversion considering that I am providing only service and I have no other assets except the bank balance from one paid invoice?

4- I understand there is a way of converting zzp to bv that applies retroactively. Does it mean it will allow me to file the invoices already paid to the zzp under the corporate tax and not under my personal income tax?

 

Thanks a lot!

 

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Dag Allemaal,

Sorry voor het schrijven in het Engels! Ik heb een vertaling naar deze tekst gekopieerd :)

Ik ben net begonnen als freelancer als zzp, heb al wat werk gedaan bij één klant en de eerste facturen gestuurd ... Nu realiseer ik me dat het voor mij voordeliger is om om te bouwen tot bv, zeker als ik de volgende factureert aan dezelfde klant als bv en niet als zzp.

Ik heb 4 vragen:

1- Mag ik de volgende facturen (voor hetzelfde project en dezelfde klant) indienen onder de nieuwe BV-belastingaangifte?

2- Als 1 mogelijk is, maakt het dan uit of ik mijn zzp omzet in een bv of een compleet nieuwe bv maak?

3- Als omrekening nodig is, moet ik dan enige belasting betalen over deze omzetting, aangezien ik alleen service verleen en geen ander actief heb dan het banksaldo van één betaalde factuur?

4- Ik begrijp dat er een manier is om te converteren die met terugwerkende kracht van toepassing is. Betekent dit dat ik de facturen die al betaald zijn onder de vennootschapsbelasting en niet mijn personenbelasting kan indienen?

Hartelijk bedankt!

 

[prinsrachid]

Are you aware of all the other consequences? You may want to avoid paying income tax, but with a BV you are required to pay yourself a wage of at least 47.000 euro (if not more). As your own employer you will have to file monthly wage taxes. So you still pay income tax on this. Only the remainder will be taxed lower... But only temporarily. 

 

When you make a profit in your BV (that means: after paying yourself at least 47.000 euro each year), you may pay the lower corporate tax rate. However, when you actually want to take out that profit in, you will have to take out dividends. The BV had to file dividend tax returns. So you still pay income tax on it.

 

Finally, by not being a zzp-er you lose all fiscal entrepreneurial benefits, such as the 14% profit deduction, and the standard zzp reduction of at least several thousand euros. Those benefits do not apply to employees of a BV.

 

I would seriously doubt that you would actually pay less in overall taxes in a BV than as a zzp-er. It's important to look at the effective tax rate, rather than the one dimensional marginal tax rate. They literally don't tell you anything, and you should definitely not decide to change your business structure over, especially considering there are also some considerable legal consequences (also for your clients).

[NNabil]

Thanks a lot prinsrachid for you advice, much appreciated! but I am already convinced the bv will be profitable because of my situation + plans (already having an employee salary and any extra income in box 1 will be on the 49.5% bracket...)

 

Also, you said "Only the remainder will be taxed lower... But only temporarily. "

I am not sure what you mean exactly by temporarily?

 

Anyways, I still did not find an answer to my initial 4 questions! Can someone help?

 

[prinsrachid]

5 uur geleden, NNabil zei:

Thanks a lot prinsrachid for you advice, much appreciated! but I am already convinced the bv will be profitable because of my situation + plans (already having an employee salary and any extra income in box 1 will be on the 49.5% bracket...)

 

If you start a BV, you are fiscally mandated to give yourself an employee salary of at least 47.000 euro. So, if you already have an employee salary, that 47.000 euro salary from your own BV will come on top of that anyway.

 

5 uur geleden, NNabil zei:

Also, you said "Only the remainder will be taxed lower... But only temporarily. "

I am not sure what you mean exactly by temporarily?

 

If your BV makes a profit (after paying you 47.000 euro salary), that profit will be taxed at a lower rate of about 15%. However, that after tax profit will stay in your BV. It is not yours yet. If you want to take it out of your company, it has to be taken out as dividends. You pay an additional 27% tax on that. You only pay the lower (15%) rate temporarily, because the 27% will be added later, when you actually want to spend it personally.

 

Op 25-2-2021 om 00:07, NNabil zei:

1- Will I be allowed to file the next invoices (for the same project and the same customer) under the tax return of the new BV?

2- If 1 is possible, will it matter if I convert my zzp into a bv or create a complete new bv?

3- If converting is necessary, will I pay any tax on this conversion considering that I am providing only service and I have no other assets except the bank balance from one paid invoice?

4- I understand there is a way of converting zzp to bv that applies retroactively. Does it mean it will allow me to file the invoices already paid to the zzp under the corporate tax and not under my personal income tax?

 

I think your questions only relate to fiscal reality, not to legal consequences. I think it might all be fiscally allowed (the tax office doesn't care who pays the tax, as long as someone pays it), but legally you will have to get permission from each and every client, before you can transfer your contracts. If they don't agree, you cannot send them an invoice from the new BV.