Glossary · 2026
27+ Belgian financial terms, explained simply
PLCI/VAPZ, IPC, POZ/CPTI, NISSE, NSSO, IPP/PB, corporate income tax, BIK, 80% rule, VVPRbis, liquidation reserve… Every acronym a self-employed person in Belgium comes across, defined with official sources and links to our guides.
Updated on
By the Finances Indépendants editorial team
- 27
terms defined
Finances Indépendants glossary · 2026-05-03
- 13
letters covered
Alphabetical index · 2026-05-03
- 27
official sources cited
NISSE · FPS Finance · FSMA · 2026-05-03
Areas covered
Each term is filed under an area to make cross-reading easier (status → tax → company → pension → insurance).
- Pension: 6 terms
- Tax: 6 terms
- Status & contributions: 7 terms
- Company: 6 terms
- Insurance: 2 terms
All terms
Search by acronym (PLCI, BIK, IPP) or by word ("car", "contribution", "80% rule"). Click a term to copy its direct link and share it.
27 terms in the glossary
8
- 80% ruleTax
The 80% rule states that the statutory pension and supplementary pensions combined (capitalised, expressed as an annuity) may not exceed 80% of the last normal professional income. Exceeding this threshold makes the excess premiums non-deductible. The calculation takes account of career length and back-service.
See also: EIP guide for company directors
A
- Assisting spouseStatus & contributions
The assisting spouse must join the social insurance fund of the self-employed person they help. The maxi-status (compulsory since 1 July 2005 for spouses born after 1955) gives full rights (pension, incapacity for work, healthcare) and allows them to take out their own PLCI. The mini-status, reserved for spouses born before 1956, only covers incapacity for work, invalidity and maternity.
- ATNAvantage de Toute Nature (benefit in kind, BIK, VAA in Dutch)Tax
The ATN is added to the director's taxable income and is subject to personal income tax (IPP). The calculation depends on the type of benefit (an official formula for company cars based on list price × CO2, and so on). If not anticipated, it can come as a surprise at tax return time.
See also: Company car
B
- Business expensesTax
A self-employed person can deduct business expenses from their income: equipment, travel, training, premises, PLCI contributions, and so on. Either as actual expenses (supported by evidence and kept for 7 years), or through the statutory flat-rate allowance, depending on status.
Source: FPS Finance (new tab)
C
- CapitalisationInsurance
In Belgian life insurance, capitalising means letting interest build up inside the contract without annual withholding tax on movable income. When the contract pays out, the capital is taxed once, under the contract's regime (pension, branch 21, branch 23).
Source: FSMA (new tab)
- Company carTax
The company car is one of the most common benefits in kind. The ATN is calculated using an official formula (list price × CO2 coefficient × 6/7 × age percentage). Since 2026, combustion-engine vehicles have been gradually losing their tax deductibility.
See also: ATN
- Company directorCompany
A company director (manager of an SRL/BV, director of an SA/NV) is automatically subject to self-employed status, even if the mandate is unpaid (an irrebuttable presumption, save for duly supported evidence to the contrary). This status governs access to an EIP and the application of the SME rate of corporate income tax (ISoc).
Source: NISSE (new tab)
- CPTIConvention de Pension pour Travailleurs Indépendants (pension agreement for the self-employed, POZ in Dutch)Pension
The CPTI allows the self-employed working as a natural person (without a company) to build up a supplementary pension on top of the PLCI. Premiums are deductible from personal income tax (IPP), provided the 80% rule is respected, and social security contributions remain due on professional income.
See also: Pension pillar
D
- DividendsCompany
Dividends are paid out of net profit after corporate income tax (ISoc). The final withholding tax on movable income is 30% as a rule, but can be reduced to 18% under the VVPRbis regime for new SME shares, subject to strict conditions.
See also: VVPRbis
Source: FPS Finance (new tab)
E
- EIPEngagement Individuel de Pension (individual pension commitment, IPC, IPT in Dutch)Pension
The EIP is a pension insurance contract funded by the company for its director. Premiums are deductible from corporate income tax (ISoc), provided the 80% rule is respected. For a director of an SRL/BV or SA/NV, it is often the most powerful pillar.
See also: EIP guide for company directors · 80% rule
F
- Framework agreementPension
The framework agreement sets the rules of the pension plan (benefit formula, funding conditions, beneficiaries). It is required for an EIP to be recognised for tax purposes. Any change (back-service, a change in premium) must be recorded in an amendment.
I
- INAMI contributionPension
When a PLCI, EIP or CPTI is paid out, INAMI (the NIHDI) deducts a contribution of 3.55%, along with a solidarity contribution of 0% to 2%. These deductions come on top of final taxation (typically 10%) and must be factored into the contract's net return.
Source: NIHDI (new tab)
- INASTIInstitut National d'Assurances Sociales pour Travailleurs Indépendants (National Institute for the Social Security of the Self-employed, NISSE)Status & contributions
INASTI sets the scales for social security contributions, calculates the statutory pension (first pillar) and coordinates the social insurance funds (Acerta, Liantis, Partena, Securex, Xerius). Every self-employed person in Belgium comes under it from the moment they register with the Crossroads Bank for Enterprises (CBE).
See also: Social security contributions · Adjustment of contributions · Social insurance fund
Source: NISSE (new tab)
- Internal capital gainTax
Historically exempt as “normal management of private assets”, the internal capital gain is now closely watched by the tax authorities and can be requalified as miscellaneous income (33%) or taxed under the applicable regime. Any such transaction should be backed by an advance tax ruling.
- IPPImpôt des Personnes Physiques (personal income tax, PB in Dutch)Tax
The IPP is the main tax on the business income of a self-employed person working as a natural person, and on the remuneration of a company director. The 2026 scale runs from 25% (up to about €16,320) to 50% (above about €49,840), with municipal surcharges on top.
- ISocImpôt des Sociétés (corporate income tax, VenB in Dutch)Company
ISoc applies to the net taxable profit of Belgian companies. The SME rate (20%) depends on several conditions being met, in particular paying the director a remuneration at least equal to the legal threshold, or to the taxable profit if that is lower.
L
- Liquidation reserveCompany
The liquidation reserve is a powerful wealth-planning tool for SMEs. The company pays 10% when the reserve is set up, after which the director can take the funds out with reduced withholding tax on movable income (5% after 5 years, 0% on actual liquidation).
Source: FPS Finance (new tab)
N
O
- ONSSOffice National de Sécurité Sociale (National Social Security Office, NSSO)Status & contributions
The ONSS manages social security for employees. For a director of an SRL/BV paid as a self-employed person, INASTI applies, not the ONSS: a common source of confusion when moving to a company.
Source: NSSO (new tab)
P
- Pension bonusPension
The pension bonus rewards working beyond the statutory age (66 in 2025, 67 from 2030). It is added to the statutory pension calculated by INASTI (self-employed) or the Federal Pension Service (employees). The amount depends on the number of days worked beyond the threshold.
- PLCIPension Libre Complémentaire pour Indépendants (free supplementary pension for the self-employed, VAPZ in Dutch)Pension
The PLCI is the most accessible second-pillar pension for the self-employed in Belgium. Contributions are deductible both for social security contributions and for personal income tax (IPP). There are two variants: the ordinary PLCI and the social PLCI (with solidarity cover for incapacity for work and death).
See also: PLCI guide 2026 · Pension pillar · Unpaid social security contributions
Source: NISSE, PLCI (new tab)
- Provisional exemption (social security contributions)Status & contributions
A self-employed person who cannot pay their social security contributions can apply to their social insurance fund for a provisional exemption. Be careful: the exempted period gives no entitlement to a statutory pension and cannot be regularised afterwards.
See also: Adjustment of contributions
Source: NISSE (new tab)
S
- Self-employed as a secondary occupationStatus & contributions
A self-employed person with a side activity pays no INASTI contributions as long as their annual net income stays below the exemption threshold, and builds up no extra social rights (since they are already covered by their main job). Once the threshold is reached, they pay contributions at the main-occupation rates on their whole income. If they lose their main job, the status switches to main occupation, possibly with a retroactive back-payment.
Source: NISSE (new tab)
U
- Ultimate beneficial ownerCompany
Every Belgian company must declare its ultimate beneficial owners (UBOs) in the register kept by FPS Finance. It must be updated within a month of any change (transfer of shares, new director). Penalty: administrative fines of up to €50,000.
Source: FPS Finance, UBO (new tab)
V
- VVPRbisCompany
The VVPRbis regime requires the shares to have been issued in return for a cash contribution made after 1 July 2013, fully paid up, in an SME (in the tax sense). The rate falls to 20% in the second year and then 18% from the third, raised from 15% to 18% by the programme law of 30 May 2026.
Source: FPS Finance (new tab)
Sources
- NISSE (INASTI), National Institute for the Social Security of the Self-employed. View (new tab)(Official source, accessed on 2026-05-03)
- FPS Finance, Federal Public Service Finance, Belgian taxation. View (new tab)(Official source, accessed on 2026-05-03)
- FSMA, Financial Services and Markets Authority. View (new tab)(Official source, accessed on 2026-05-03)
- NSSO (ONSS), National Social Security Office. View (new tab)(Official source, accessed on 2026-05-03)
- NIHDI (INAMI), National Institute for Health and Disability Insurance. View (new tab)(Official source, accessed on 2026-05-03)
Frequently asked questions
About the glossary
For any self-employed person in Belgium (sole proprietor or company), SRL/BV director, assisting spouse, company director, or anyone simply curious who is faced with the jargon of business finance in Belgium. The definitions avoid copy-and-paste officialese and focus on practical use.
Use the search bar at the top of the list: it filters live on the term, its full form, the definitions and synonyms (accents are ignored). You can also click a letter in the sticky alphabetical index.
When a term deserves more than a definition (PLCI/VAPZ, IPC, NISSE contributions…), we link to the matching guide or pillar page. The glossary remains the first point of entry; the pillar pages go deeper into tax, ceilings and comparisons.
Yes. The definitions follow regulatory changes (Belgian Official Gazette, NISSE, FSMA, FPS Finance), and the date shown at the top of the page indicates the last update. For a precise figure, check the official source cited on the term's page.
Of course. Write to us via the Contact page, mentioning the term to add and the context (status, type of contract, tax situation). Relevant suggestions are added in a future update.
During the year, the self-employed person pays provisional contributions calculated on an older income or on a minimum base. When the tax authorities pass the final income on to the social insurance fund, usually two to three years later, the fund calculates the final contributions and claims the difference or refunds the excess.
Read the full entry
See also: INASTI · First year: contributions and adjustment · Contributions simulator · Unpaid social security contributions · Social insurance fund
Source: NISSE, How much in social security contributions do I have to pay?↗ (new tab)