The tax administration expects sole proprietors to pay advances on the final taxes due for the current financial year. By paying in advance, you can spread your tax burden over the year and receive a so-called bonus (tax reduction). If you do not do that or if you do not contribute enough, a tax increase will be charged.
For the 2025 tax year (2024 revenue year), sufficient and timely advance payments are all the more important, given the tax increase of as much as 9%. Before 2024, the rate for sole proprietors was 4.5% of the final tax due. However, spurred by increased interest rates at the European Central Bank, this has doubled.
In other words, advance payments are a must to avoid an increase in taxes. You must do this four times throughout the year, but be aware that your right to reduce the tax increase depends on at what time you pay in advance:
- Before 10 April 2024: 12% reduction
- Before 10 July 2024: 10% reduction
- Before 10 October 2024: 8% reduction
- Before 20 December 2024: 6% reduction
What if you did not start as self-employed in your main occupation until 2022, 2023 or 2024? Then no increase in tax will apply for the 2025 tax year.
You can choose the amount you pay in advance, but you should base your payment on an estimate of your final taxes due. Given that the tax reduction decreases the later you pay during the year, we’d like to give you a plan of action:
| Payment deadline | One-off prepayment | |
| Prepayment 1 | 10 April 2024 | 75% |
| Prepayment 2 | 10 July 2024 | 90% |
| Prepayment 3 | 10 October 2024 | 112.50% |
| Prepayment 4 | 20 December 2024 | 150% |
Our PKF BOFIDI experts will be pleased to give you further advice
Do you need advice on your optimal prepayment strategy? Don’t hesitate to contact Claudia Cuyvers at PKF BOFIDI. She’ll be happy to help you.
This article was written by Claudia Cuyvers.