Category: Tax
Taxable profit
What is left of revenue after business expenses and your salary are deducted — the amount corporate tax is calculated on.
Taxable profit is the base the company pays corporate tax on: revenue, minus business expenses, minus the salary and pension contributions the company pays you. Lowering this figure with genuine deductions lowers the corporate tax bill; the profit that remains after tax can then be paid out as dividend or kept in the company.
In the worked example
On the worked example for a freelancer in Belgium with €115,500 of revenue, this line comes to €69,651.
Articles on this
Related terms
This article is general information for a one-person company (BV/SRL), not tax advice. Rules and figures change — confirm your situation with your accountant before acting.