Often concerns late payments

Miscellaneous financial expenses mainly include late payment interest 🕰️. For example, in the event of late payment of withholding tax or VAT. This interest is 100% deductible.

What's the difference between interest on arrears and a fine? Interest on arrears should not be confused with fines, which are not deductible. If, for example, you don't pay your VAT on time, you risk interest (deductible) but also fines (non-deductible).

Among the various financial expenses, you will also find (rare) discounts granted to your customers for prompt payment, negative exchange differences (you pay with an exchange rate less advantageous than that of the day of the invoice) and negative payment differences.

When do I have to deal with a negative exchange difference? You encode an invoice for $100 on September 20. The exchange rate on that day is €101. At the time of payment, the exchange rate has changed to €103. There is therefore a negative exchange difference of €2.

💡 Please note that late payment of social security contributions will result in a surcharge (of 3% over the whole quarter), which is considered a non-deductible fine.