Starting out as a collaborating partner or spouse? This you need to know
May 2023 – Your spouse or partner wants to cooperate in your business? Co-operating partner or spouse status offers some interesting (tax) advantages.
Who qualifies for the cooperating partner or spouse status?
Those who are married or legally cohabiting with a self-employed person are eligible for the status if they
Cooperates effectively (regularly or at least 90 days a year) in the business of the self-employed partner or spouse(s).
Has a personal income from self-employment that does not exceed €3,000 per year.
Has no personal income (or replacement income) from an activity as an employee or civil servant.
The tax status of the assisting spouse or partner
If your partner or spouse fulfils the above conditions, he/she will be granted full tax and social security status. In this case, the professional income is split for tax purposes. The collaborating partner or spouse acquires a separate income with its own cost deduction and separate social contributions. In short, the collaborating partner enjoys the same rights as any other self-employed person.
Become a collaborating partner or spouse? You must do so
1. Register as a collaborating partner or spouse with the spouse's or partner's social insurance fund.
2. Pay quarterly social contributions (calculated on annual net income).
The income of the collaborating partner or spouse
A self-employed person may choose to allocate part of his/her income to the assisting spouse. That income should correspond to the income he/she actually generated in the activity. This option may provide a tax advantage.
Still have questions about the status of the collaborating partner or spouse? Ask your accountant for advice.
