To pay less taxes next year, it is best to take action this week. There are many interesting options to take advantage of tax benefits at the last minute. We give you ten useful tips.
Dimitri Thijskens27 december 2023, 18:46
1. Start saving for retirement
Are you between 18 and 64 years old and have you not yet saved for your pension this year? Then consider making the necessary deposits. You can enjoy a tax reduction of 30 percent if you have saved a maximum of 990 euros. This translates into a maximum benefit of 297 euros. You can also make additional contributions up to 1,270 euros, but then the tax reduction will decrease to 25 percent. Good for a maximum benefit of 317.5 euros.
2. Donate to charity
If you would like to support a good cause, this will also be rewarded by the tax authorities. And not even a little bit. Donations to a recognized charity give you a tax reduction of 45 percent. For example, if you donate 100 euros to Doctors Without Borders, the tax deduction is a maximum of 45 euros, depending on your salary. There are some conditions: it must be at least 40 euros per charity in a full year and the total amount of donations may not exceed 10 percent of your total taxable income.
3. Get life insurance
Do you want to be sure of a nest egg when you stop working and you now have enough money? Then consider life insurance. Here too, a substantial tax reduction of 30 percent applies to new and current contracts up to a maximum amount of 2,350 euros. In the best case it can give you a benefit of 705 euros. There are some catches. If you have had a mortgage loan for some time that entitles you to tax deductions, life insurance will not provide you with any additional benefits.
4. Pay the childcare bills
Anyone who uses childcare benefits from a tax reduction of 45 percent up to a maximum of 15.70 euros per day and per child. In the best case, this gives you a net benefit of 7.06 euros per day and per child. For a single parent with a low income, this reduction can amount to a maximum of 11.77 euros per day per child. It is important to pay the invoices this week. For the 2024 tax return, only payments that have been made this year are taken into account.
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5. Replenish your stock of service vouchers
Service checks are very cheap (9 euros for the first 400) and they provide a tax benefit of 20 percent. This applies up to a ceiling of 1,720 euros per person, which corresponds to 191 service vouchers. If you haven’t got this yet, it’s worth replenishing your stock this week. Since this is a benefit that is calculated per person, you can also purchase another 191 service vouchers in the name of your partner. Interestingly, low income earners can also enjoy this benefit to the fullest.
6. Consider legal expenses insurance
This may be the last time that you can take out tax-friendly legal expenses insurance – this involves a tax reduction of 40 percent up to a maximum premium of 310 euros. This can give your family a maximum benefit of 124 euros. This benefit has only existed for a few years, but there are already plans to abolish it from 2024. Please note: this only applies to specific individual legal expenses insurance policies and not to the legal expenses insurance under your car insurance.
7. Order a charging station and pay a deposit
Installing a regular charging station in 2023 would give you a tax reduction of 30 percent up to an investment amount of up to 1,750 euros, with bi-directional charging stations (which not only charge, but can also ‘discharge’ energy from the battery), it is even more than 8,000 euros. . From 2024, this advantage will be halved. To benefit from a maximum benefit of 525 euros, you can consider paying an advance. But then you have to be very, very quick.
8. Buy an electric tricycle
Another tax benefit that could be overhauled in 2024 is that for the purchase of an electric motorcycle or an electric tricycle with a maximum speed of more than 45 kilometers per hour that can transport two or more people. This now applies up to a maximum amount of 3,140 euros, for a similar four-wheeler the maximum amount is 5,150 euros. Another tax benefit has only recently been created at Flemish level for passenger cars.
9. Invest in microcredits for developing countries
Would you like to contribute to a better world? Then you can buy shares of recognized development funds, which provide microcredits to local entrepreneurs in developing countries. From an investment of 390 euros, you enjoy a tax benefit of 5 percent on the purchase of shares of four recognized development funds: Alterfin, Oikocredit, BRS Microfinance and Incofin.
10. Put your money into a start-up business
Now that the stock market climate is still unfavorable, it is interesting to provide financial support to start-up companies or growth companies. The government encourages this with a tax benefit of 25 to 45 percent for amounts up to 100,000 euros. You can provide capital directly through a recognized crowdfunding platform or a start-up fund. In Flanders, there is a win-win loan for SMEs: in addition to interest compensation, the borrower receives an annual tax discount of 2.5 percent on the outstanding capital.
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2023-12-27 17:46:19
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