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Have you as a director of a company received a bridging benefit? Avoid double taxation

Friday 25/09/2020
Overbruggingsrecht ontvangen als bedrijfsleider

Many directors received the bridging benefit during the Corona crisis. Perhaps you did too?

Avoid having this benefit taxed twice, though. If it was paid into a bank account of your company, it is best to correct this as soon as possible.

What is the bridging benefit right?

The bridging benefit right is a support measure of the government to cope with the Corona crisis. Self-employed directors who were obliged to close their company, or had to interrupt their activities for at least 7 consecutive calendar days are entitled to this financial benefit.

The bridging benefit is a personal benefit. In the case of a company, the benefit is intended for the company director, and not for the company itself. It is taxed as a replacement income in the personal income tax. As a company director, you will receive tax form 281.18 in your own name, even if the benefit was paid into the company account.

Into which account was the bridging benefit paid?

Check which account the benefit was paid into. In some cases, it is possible that the social insurance fund did not have your private account number, either because you have not provided them with your private account number, or because your company pays the social contributions. Whatever the reason, if the bridging benefit was paid into your company account, it will be taxed twice: once as personal income tax and once as corporate income tax.

How can you avoid double taxation of the bridging benefit?

In order to avoid double taxation, it is best to book the amount against a credit, or to transfer it to your personal account. Indicate clearly that this is a transfer of the bridging benefit. If an audit takes place, you can in this way easily demonstrate that this does not relate to an (additional) salary. In this case, your company will not have to pay withholding tax on it, and no tax form 281.20 will be drawn up.

Do you still have questions about the bridging benefit, or do you need assistance or advice? Don’t hesitate to contact our specialists. Feel free to contact them.


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Bert Lutin
Bert Lutin
Partner Tax & Legal Services
Tanja De Naeyer
Tanja De Naeyer
Senior Manager Tax & Legal Services