Management companies under pressure: what does this mean for your SME?
November 2025 - More and more entrepreneurs are opting for a management company to structure their activities. This has not gone unnoticed by the federal government, which is looking for additional tax revenue.
What was once a structure for doctors, solicitors and consultants is now also popular with self-employed entrepreneurs, freelancers and small SME managers who want to manage their income more flexibly. According to figures from Statbel, there are more than 55,000 management companies operating in Belgium, accounting for over 57 billion euros in accumulated profits. This has not gone unnoticed by the federal government, which is looking for additional tax revenue.
How does it work exactly?
A management company acts as an intermediary between you and your customers or clients. Invoices are issued by the company, which pays you a salary as a director. The remaining profit can be reserved within the company or paid out later as a dividend.
The appeal of this structure lies in the tax difference: whereas an employee often pays more than half of their income in tax, the tax burden in a company is around 20 to 25 per cent. Start-ups even enjoy a rate of 20 per cent for four years. In addition, there are favourable schemes such as VVPR-bis and the liquidation reserve to pay out profits more advantageously at a later date.
Why entrepreneurs choose it
For many SME directors, a management company is a way to work more tax-efficiently. On average, you pay around 35 per cent tax, compared to 50 per cent for a sole trader or 60 per cent for employees (including employer contributions). On top of that, there are deductible professional expenses, the possibility of using part of your home as an office and the tax benefits associated with company cars.
Freedom also plays a role: you decide how much you invoice, how you remunerate yourself and which assignments you accept. For those with a monthly turnover of more than 10,000 euros, the formula is usually financially attractive.
The other side of the coin
The popularity of management companies also means that the government is losing out on income from personal income tax. In addition, social protection is more limited: company directors accrue fewer pension rights, are not entitled to unemployment benefits and incur additional costs due to accounting obligations. There is also the risk of bogus self-employment.
The government is watching
From 2026, every company director must award themselves a salary of at least €50,000 in order to continue to benefit from the reduced rate of 20 per cent (currently €45,000). In addition, a maximum of 20 per cent of the gross salary may consist of benefits in kind.
Possible next steps? A further increase in the minimum amount, stricter rules on dividends, the phasing out of favourable regimes such as VVPR-bis or liquidation reserves, or even the abolition of the reduced rate of corporation tax. In the longer term, the government also wants to review labour taxation in order to level the playing field between companies and employees.
What does this mean for your SME?
The message is clear: management companies remain useful, but the tax advantages are under pressure. As an entrepreneur, it is important to look ahead, evaluate which structure is still the most interesting together with your accountant, and be prepared for possible legislative changes.
