A tax-efficient alternative remuneration for Belgian independent business owners
A stock option is a right — without obligation — to purchase shares in a company at a pre-agreed price (the exercise price), for a defined period.
Granted to business owners and self-employed individuals, these options benefit in Belgium from a preferential tax regime established by the law of 26 March 1999: taxation occurs only at the time of grant, on a reduced basis (the benefit in kind — BIK). The gain realised when exercising the option is completely tax-exempt.
Result: for an equivalent amount, a stock option generates significantly more net income than a classic dividend or ordinary remuneration.
Three key steps, a major tax benefit for the business owner
The company grants the stock options to the business owner. The exercise price and duration are set contractually. The business owner has 60 days to accept or refuse the written offer.
A benefit in kind (BIK) is taxed once only, at the time of grant. This BIK — calculated according to specific tax rules — forms the taxable basis for personal income tax and social contributions. No further taxation will apply.
The business owner exercises their options at the time of their choice (within the agreed period). The realised capital gain — the difference between the value of the shares at exercise and the exercise price — is completely exempt from personal income tax.
Only the BIK (benefit in kind) is taxed at grant. The capital gain at exercise completely escapes personal income tax and social contributions.
100 % Belgian product, governed by the law of 26 March 1999. The plan is structured and validated by a leading tax law firm, guaranteeing full compliance with applicable Belgian legislation.
Compared with a VVPR-bis dividend (34.4% total tax burden), stock options systematically offer a higher net income.
The executive freely chooses their subscription frequency: monthly to optimise income on a regular basis throughout the year, or on a one-off basis during fiscally favourable years. No minimum commitment, no calendar constraints.
Compare stock options with distribution alternatives for business owners
Comparison base: subscription amount = —
Indicative simulation based on the law of 26 March 1999 on stock options. Results depend on your individual situation, the type of plan and the financial capacity of your company. Consult an adviser for a personalised analysis.
experlife guides you in structuring and optimising your remuneration as a business owner or self-employed individual.
Get in touch