How do I determine a company's tax return?

What is a company's tax return?

The income from the activity of a company is the income that is subject to tax:

• If this is capital business, it is subject to business tax
• If it is a individual business, it is subject to income tax

The tax result is used to determine the tax base.

Determination of tax result

A business or individual business imposed under BIC: titleContent shall determine its tax result on the printed No 2058 A.

A individual business imposed under BNC: titleContent shall, for its part, determine its tax result on the printed No 2035 A.

How do I calculate a company's tax return?

During the year, transactions are recorded using accounting rules, without taking into account tax rules.

Only at year-end, when the accounting result is released, the taxable result is determined.

The calculation of the tax result is done in 3 steps:

1. Resume accounting result
2. Deduct non-taxable or preferential income or the spread of taxation over time from the return
3. Add tax-indeductible or settlement-year expenses that have been recognised

This gives the following formula: Fiscal result = accounting result + extra-accounting reintegrations - extra-accounting deductions

The tax due over the tax period is calculated by multiplying the company's tax return by the tax rate.

What are extra-accounting reinstatement?

Non-accounting reintegrations are transactions that aim to neutralise an expenditure that in accounting represents an expense, but is not considered as such by the tax administration.

The main effect is to ensure that certain expenses that should have been deducted from the accounting result are not deducted or are deducted at a later date.

The following non-deductible expenses must therefore be reinstated in the tax result:

• Compensation of the operator in a individual business
• Excess depreciation for a passenger vehicle
• Business Passenger Vehicle Tax (SST) due from businesses subject to business tax
• Business tax
• Fine and penalties

What are extra-accounting deductions?

Non-accounting deductions are income that is recorded in the accounts, but is not taxable or has been taxed previously (a reinstated allowance in a previous year).

They have the main effect of delaying the taxation of a product, preventing its taxation or imposing it at a rate different from the normal rate.

Examples:

• Share loss of a person's business
• Deferral back of tax claim
• Capital gains on securities which are taxed at a rate different from the normal rate
• Depreciation of trade funds when acquired between 1^to January 2022 and December 31, 2025