As a self-employed entrepreneur in Belgium, it is important to understand which insurances you can deduct from your taxes. In other words, which insurances provide deductible professional expenses.
In this article, we dive into the depths of tax-deductible insurance, from guaranteed income to hospitalisation insurance. So grab your notepad and let’s get started! 📝
What are tax-deductible insurance policies?
Tax-deductible insurances are those insurances whose premiums can be deducted from a self-employed person’s taxable income. Let’s take a look at some of these insurances. 🔎
List of insurances
| ✅ Tax deductible | ❌ Not tax deductible |
| Social FSPS* and PAS** | Accident insurance |
| Guaranteed income | Hospitalisation insurance |
| Turnover insurance | |
| Bankruptcy insurance | |
| Fire insurance | |
| Civil liability insurance |
✅ Tax-deductible insurance
Want to know more about the meaning of the above tax-deductible insurances? Then be sure to view our blog article on dwelling on the right insurance as a self-employed person in main occupation!
Please note that many of the insurances we mention above may need to be limited according to professional use. Fire insurance for the home in which you also carry out your self-employed activities? Then only part(s) of that fire insurance will count as professional expenses.
Still a nice, extra professional cost for your accounts, of course! Because you pay that fire insurance anyway, whether you are self-employed or not.
❌ Non-tax deductible insurances
Hospitalisation insurance
Although hospitalisation insurance is important to cover the cost of medical treatment, unfortunately the premiums for this insurance are not tax deductible. They are automatically too private for the tax authorities.
Accident insurance
Like hospitalisation insurance, accident insurance premiums are not tax deductible. This insurance provides benefits in case of disability due to an accident, and can also cover hospital bills.
Here you do have as a counterpart the guaranteed income insurance. This is deductible as a professional expense and you also take out a form of disability cover.
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Conclusion
As an entrepreneur, it is important to understand which insurances are tax deductible. By taking advantage of these deductions, you can reduce your taxable income and thus pay less taxes. Make sure you keep up to date with the latest changes in tax legislation to make the most of these opportunities. Good luck! 🍀
