It's of topic but this is about my last post and that one from wannes My side buesiness At first you need to pay "province tax" this is a fixed amount for east flanders 120 / year Then the income tax, in my case this is 50% because I am in "schijf 4" Then you have the Municipal surcharges this is 7% (50%+7% of 50% is 53,5% from net profit Then I need to pay social contribution, this is 20,5 % So in total its about 74% taxes if I would invest my money. And because of this reason I make costs on purpose so they can't tax me because I almost have 0 net profit. Example : My side business makes 30k.. When you do the math I would have 7.8k to invest and pay 22.2k to the government (BIG NONO!) If I make 30k and spend it on for example a car and stuff,.. And my profit is small like 1500 euro or something then I only have to pay like (760 income tax, 120 province tax, free social contributions because my net profit is below 1500 euro) So in this case I make 30k spend 28,5k to a car lease and other stuff, keep 620 net profit and pay only 880 to taxes But as I said I would prefer to invest it for later but that's not possible unless you don't mind to pay 73% taxes. If I charge an. Hourly rate of 50 euro (excl. 21%Vat' so customer pays 60,5 per hour) and choose this option then I need to pay 36,5 (50*0.73)taxes for this hour and keep 13,5 euro net profit... But On the other side our guvernment sometimes have leaks as well for example if you bought a house before 2020 (which I did) you get every year about 1k free at income tax and from year 11 untill 30 600 free euro a year so - > 22k net free money And now yesterday that did prove a law that only in 2021 you get 1.5k free if you place a sunroof With other words my sunroof will cost me 5k but you can use a free green loan from the government as well so after this is done in 2020 I didn't invest anything, get to keep 1.5k free taxes plus just need to pay my almost interest free green loan instead of paying my electricity bill.. And after my free loan (3-5 year) I get free electricity for the next 15 years or something and the government makes the investment for you because of the green loan plus they give you 1.5k to do it.. So our government also gives things.. The problem is that you need to make use of those things immediately because like now the 22k free over 30 years law is already gone but because I did it last year then can't take it away anymore and they need to pay me for the next 29 years.. Plus like this law from yesterday about sunroofs it's only possible in 2021 for the 1.5k free taxes and in 2022 its 75% anymore, 2023 25% 2024 you get nothing anymore.. Example in 2021 I get 1k free money because I bought a house in 2019 plus get 1.5k free money because I will place a sunroof on cost of the government =2.5k net free untaxed money. So in my opinion you need to pay a ton of taxes unless you play it tax smart in my plan 2 for a side business and every year you need to check if the guvernment did fiscal changes where you can profit on like the 2 things mentioned in the last part of the post.
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