When a company makes a profit, there are several ways of allocating it:
Classic dividend
Whatever happens, it's always a good idea to pay out a tax-free dividend of €800.
When this dividend is allocated, you will have to pay the withholding tax (15% or 30% depending on whether or not the conditions for the VVPRBis dividend are met).
However, this withholding tax, which will have been declared and paid by the company on these €800 dividends, can be recovered via the IPP declaration of the person who received the dividend (codes 1437/2437).
If the dividend relating to the 2021 balance sheet is allocated in June 2022, for example, the withholding tax will be recovered in the IPP declaration relating to 2022 income (financial year 2023) --> one year later.
NB: please note that in order to distribute dividends, the company must satisfy liquidity and solvency tests.
Profit carry-forward
It is possible to simply carry forward profits. We generally choose this option for a new company, which is in its first 2 financial years, but which will meet the conditions for VVPRBis from the 3rd financial year onwards.
Occasionally, we may also simply carry forward the profit, if liquidity and solvency tests do not allow the dividend to be paid out.
This is the preferred solution for companies that are entitled to it, and wish to generate cash fairly quickly.
In general, from the company's 3rd financial year onwards (as soon as it is entitled to the 15% dividend), we offer the client the option of paying out the entire amount in VVPRBis dividends.
If he doesn't need the money right away, we can simply carry the profit forward, and anything carried forward can be paid out as a VVPRbis dividend in subsequent years.
From the company's 3rd financial year onwards, the profit can be paid out directly as a dividend, taxed at 15% (unlike the liquidation reserve, for which you have to wait 5 years each time to pay out the year's profit that has been allocated to this reserve).
Unlike the liquidation reserve, it is possible to allocate not only the year's profit to the VVPRBis dividend, but also profit carried forward from previous years.
NB: please note that to be able to distribute dividends, the company must satisfy liquidity and solvency tests.
This solution is generally used for companies that are not entitled to a VVPRBis dividend. In this case, the liquidation reserve is the best optimization option.
It may even be more advantageous than the VVPRBis dividend in cases where the person is close to retirement and intends to liquidate the company in the coming years (and doesn't need to take any money out in the meantime). Indeed, in this case, taxation is only 10% on top of ISOC (instead of 15%);
Disadvantages :
the 10% separate contribution must be paid directly (whereas the dividend can only be paid out 5 years later)
you have to wait 5 years each time between the time of allocation to the liquidation reserve and the time of dividend payment.
unlike VVPRBis dividends, only the profit for the year (and not profit carried forward from previous years) can be allocated to the liquidation reserve.
note that if the company sets up a liquidation reserve, and subsequently makes a loss and is never able to withdraw the liquidation reserve, the 10% special contribution will have been paid for nothing.
NB: in 5 years' time, when the company wants to release the liquidation reserve, it will have to satisfy the liquidity and solvency tests.
The tantième is mainly used in cases where the director's remuneration during the financial year was not sufficient to qualify for the reduced ISOC rate.
It is still possible to rectify this situation at the time of appropriation of profit, since the tantième is treated as director's remuneration.
In general, a dividend is only paid out if there is not enough remuneration for the company to qualify for the reduced rate (the social security contributions and IPP paid on the tantième are offset by the ISOC gain).
NB: please note that in order to distribute a tantième, the company must satisfy liquidity and solvency tests.
Legal and other reserves
As the legal reserve is no longer compulsory, we no longer use this allocation, which is of no interest.
Table summarizing the different ways of taking money out of the company at the time of profit appropriation:
