Company
Director's current account
By the Finances Indépendants editorial teamUpdated on 4 min readAlso known as: Current account in debit, Current account in credit, Director's loan account, Compte courant
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Contents
What is a director's current account?
It is an account in the company's books, opened in the name of the manager or director, that tracks the money moving between them. Its balance shows who owes what to whom. It is not a bank account: it is a claim or a debt, depending on which way the balance tips.
The account moves whenever money does not follow its usual path. The director pays a company invoice with a personal card: the company owes them that amount. They pay a private expense from the company account: now they owe that amount to the company. The [company director](/fr/glossaire#mandataire-societe) of a small SRL/BV often feeds this account without thinking about it.
Current account in debit: a benefit in kind
A current account in debit amounts to a loan from the company to its director. Interest-free, or at too low a rate, this loan gives the director a [benefit in kind](/fr/glossaire#atn), taxed as director's remuneration.
The taxable benefit equals the difference between a reference interest rate, which depends on the type of loan, and the rate the director actually pays. Reference rates are published in the Belgian Official Gazette (Moniteur belge). If the director pays at least the reference rate, there is no benefit.
For a loan with no fixed term, which is what a current account in debit is in practice, the reference rate is the one for the year in which the director had the money, and the benefit is deemed received at the end of each calendar month. The company reports it on the director's 281.20 tax form.
Current account in credit: when the director lends to the company
A current account in credit means the company owes money to its director: cash put in at the start, expenses paid on its behalf, sums due to the director that have not yet been drawn. The director can be repaid or, if the company pays interest, earn an income from it.
That interest is capped, however. When the interest-bearing advances exceed the sum of the taxed reserves at the start of the taxable period and the paid-up capital at its end, the interest is treated as a [dividend](/fr/glossaire#dividendes) to the extent of the excess. Only the excess part is recharacterised.
Leaving remuneration in the company: take care
Remuneration that has been decided but is left in the company increases what the company owes the director. It does not disappear from the tax radar: professional withholding tax applies to remuneration that the company pays or allocates to its directors, not only to what it transfers.
Before leaving remuneration on the account, have your accountant check when it becomes taxable and when the withholding tax is due. The order in which you take money out of a company, remuneration, dividend or repayment, is best worked out as a whole: see [how to take money out of an SRL/BV](/fr/blog/sortir-argent-srl-ordre-optimal).
Keeping a current account under control
A debit balance that keeps growing stands out at first glance in the annual accounts. A few habits stop it from becoming an issue.
- Pay private expenses from your personal account, even when the company's is better stocked.
- Have the current account balance reviewed every quarter, not only at year end.
- If a debit balance is going to last, set in writing an interest rate at least equal to the year's reference rate.
- Keep the supporting documents for every advance you make to the company: they prove the claim.
Not to be confused with
The terms close to Director's current account and what sets them apart.
- Director's current account and the company's bank account
- The bank account holds the company's money. The director's current account is a bookkeeping entry that measures what the company and the director owe each other; it can be in debit while the bank shows a comfortable balance.
- Director's current account and a dividend
- A dividend distributes profit to shareholders, after a decision of the general meeting. The current account records debts and claims, which are repaid; only certain excessive interest paid on an account in credit is treated as a dividend.
Further reading
Director's current account: frequently asked questions
It is a current account whose balance shows that the director owes money to the company, usually because it paid private expenses or because the director drew more than the company owed them. For tax purposes, it is treated as a loan from the company to the director.
The balance itself is not income, but the absence of interest, or too little interest, is. The difference between the reference rate published in the Belgian Official Gazette and the rate paid is a benefit in kind, taxed under personal income tax (IPP) as director's remuneration and reported on the 281.20 form.
No. For a loan with no fixed term, the benefit is deemed received at the end of each calendar month in which the director had the money. A repayment in December stops the benefit from then on, but the months spent in debit remain taxable.
The reference rate for the year in which the director had the money, published in the Belgian Official Gazette. If the director pays the company at least that rate, there is no benefit in kind. The rate changes from year to year: check it every year with your accountant.
Yes, the company can pay interest on the money you advance to it. But when the advances exceed the sum of the taxed reserves at the start of the taxable period and the paid-up capital at its end, the interest is treated as a dividend, up to the amount of the excess.
A temporary debit balance is not a mistake, but it has a tax cost for as long as it lasts. The simplest course is to keep private and business expenses apart. This information is provided for guidance only and does not constitute personalised advice. Consult a licensed professional before making any decision.
Official source
- FPS Finance, interest-free or reduced-rate loans. View (new tab)(Official source, accessed on 2026-10-23)