12. Income from self-employment activities

Income from the practice of a liberal profession corresponds to the net income generated independently from certain intellectual, scientific, artistic, or technical activities.

This includes in particular:

• Doctors, lawyers, notaries, architects, accountants, etc.
• Artistic or scientific professions exercised personally
• Functions as a director or auditor in a company, provided it is not a salaried activity

This type of income is distinct from employment income, pensions, income from movable capital, or rental income.

Who is concerned?

Taxpayers who practice an activity independently, without a subordinate relationship, are concerned.

This can include:

• Professionals operating under their own name
• Members of a liberal profession registered with a professional body or chamber
• Individuals carrying out intellectual or artistic activities independently, even on a secondary basis

Calculation of net income

The taxable net profit is determined by deducting professional expenses from the income received.

Net income = Income – Operating expenses

The income to be considered must be supported by invoices issued to clients. Similarly, operating expenses must be supported by supplier invoices. Invoices must be expressed including all taxes (TTC), including VAT, whether or not you are subject to VAT.

It is therefore essential to account for:

• All income invoices (TTC) issued to your clients
• All expense invoices (TTC) for your professional purchases and costs

Alternative with accounting balance sheet

If you work with an accountant and have an annual balance sheet with a profit and loss statement, this document can serve as the single supporting document. In this case, it is not necessary to attach all invoices individually, provided that the balance sheet correctly reflects the accounted elements.

Deduction of professional expenses

To determine the taxable net profit, professional expenses can be deducted using several methods:

• Actual expenses supported by invoices
  You can deduct all expenses incurred for your activity, provided you have the corresponding invoices. This includes purchases, travel expenses, supplies, and any other costs necessary for the activity.

• Annual accounting balance sheet:
  If you work with an accountant and have a balance sheet with a profit and loss account, this document can serve as the sole supporting evidence. In this case, it is not necessary to attach all invoices individually, as long as the balance sheet correctly reflects income and expenses.

• Flat-rate operating expense allowance:
  If you do not wish or cannot justify your actual expenses, a flat-rate allowance based on your annual income can be applied. This allowance is calculated according to the scale indicated in the table below and simplifies the calculation of taxable net income.

These three methods are alternatives: you can choose the one that is most advantageous or simplest according to your situation.

The table below shows the flat-rate operating expense allowance based on annual income:

Annual income (€)	Flat-rate operating expenses (€)
Up to 2.000€	30% of income
2.000 to 6.000€	600€ + 25% × (income – 2.000€)
6.000 to 15.000€	1.600€ + 20% × (income – 6.000€)
Above 15.000€	3.400€

Attendance fees (Jetons de présence)

Attendance fees represent remuneration paid to persons participating in certain official or representative functions, generally on an ancillary basis.

Attendance fees are allocated:

• To delegates of professional chambers and federations, health insurance funds, social security funds, or the Economic and Social Council
• To members of municipal councils or municipal commissions
• To members of administrative commissions of the national brand

A flat-rate deduction of 15€ per session, not exceeding 45€ per month or 540€ per year, can be deducted as expenses. The deduction can never exceed the income.

Example

A taxpayer receives attendance fees as a member:

• Of the municipal council: 6 sessions
• Of the building commission: 4 sessions

Total income: 500€
Flat-rate deduction for expenses: 15€ × 10 sessions = 150€
Net income: 500€ – 150€ = 350€

This income must be declared as income from the practice of a liberal profession in the tax declaration.

Director’s fees (Revenus de tantièmes)

Remuneration paid to directors, auditors, or members of a supervisory board may be considered as income from the practice of a liberal profession.

Operating expenses generally include:

• Travel expenses
• Other costs incurred

If you cannot justify actual expenses, you can apply a flat-rate operating expense allowance based on your annual income, as indicated in the table above.

Voluntary activities

Tax-exempt voluntary income

Income from voluntary activities is exempt from income tax up to 5.000€ per tax year, provided that these activities are:

• Performed on a secondary basis, in addition to a main activity
• Carried out independently, i.e., without subordination
• Generally conducted in a non-profit institution (ASBL, NGO, etc.)

For income exceeding 5.000€, a flat-rate allowance of 5.000€ for expenses can be applied. Expense reimbursements must be included in the gross income.

Activities eligible for the allowance

Cultural sector

• Music or choir directors for a music society (harmonie, fanfare), choir, or orchestra
• Church organists
• Musicians and singers
• Amateur actors in theatre or cabaret
• Animators

Sports sector

• Sports coaches
• Collective sports activities (team sports)
• Individual sports activities
• Referees

Social sector

• Allowances for volunteer agents of rescue units (firefighters, paramedics, etc.)
• Allowances for individuals engaged in other volunteer activities
• Delegates of mutual aid societies

Activities carried out by volunteer agents of rescue units for the State or a municipality are generally considered dependent, but for fiscal fairness, the flat-rate allowance is also applicable.

Non-profit associations (ASBL)

• Allowances received by the president
• Allowances received by the secretary
• Allowances received by the editor of the association’s periodical
• Other volunteer activities within an ASBL

Activities not eligible for the allowance

• Delegates of professional chambers and federations
• Delegates of health insurance funds, social security, or the Economic and Social Council
• Delegates of trade unions
• Members of administrative commissions of the national brand
• Members of social offices
• Members of municipal administrative boards
• Sports coaches in commercial fitness centers
• Sports coaches employed by a municipality

However, affected taxpayers can request a deduction of actual expenses.