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Five legal changes in 2020

Entrepreneurs | 09 January 2020 | Written by Burçin Alim

2020 is the Chinese year of the Rat. If we’re to believe Chinese astrology, the year of the Rat is characterised by innovation. So, let’s see what innovations await you and your company in 2020.

Five legal changes in 2020
Company law reform: introduction of second phaseThe new Code entered into force on 1 May 2019. This also meant the start date of the first phase. From this date onwards, companies can only be incorporated in the new form.

The starting shot for the second phase concerns existing companies. Since 1 January 2020, existing companies have been obliged to amend their articles of association in the event of an amendment of these or they must convert if it turns out that the company form they have created no longer exists.

As from 1 January 2024, existing companies that have not yet taken action will automatically be converted to the closest form.
  • Would you like to know more about the impact of the company law amendment?
    Be sure to read the blog 5 things to know about company law reform

  • 2. Since 1 January 2020, legal increases are no longer tax-deductibleSince 1 January 2020, the legal increases (a kind of surcharge if you fail to pay your social security contributions on time) are no longer tax-deductible as a professional expense. This will not change for ordinary social security contributions. Increases paid before 31 December 2019 are still tax deductible; increases paid from 2020 onwards are no longer tax deductible. 

    3. Reform of the Brussels child benefit schemeOn 1 January 2020, Brussels also started working on a new child benefit scheme. This is analogous with Flanders and Wallonia, which previously took over the management and payment of child benefits from the federal level.
    Specifically, as an employer, you no longer need to be affiliated with a child benefit fund as from 1 January 2020. From now on, each employee chooses their own child benefit fund instead of the employer.
  • For more information please contact us at Infino Child Benefit Fund

  • 4. Important change regarding the career cheque as of 1 January 2020From 2020 onwards, the Flemish government will continue to invest in career guidance but will make some changes in order to save money. What does this mean for you specifically
    • You can only apply for a career cheque as from 7 years or 84 months of work experience.
    • A first career cheque entitles you to four hours of coaching. A second career cheque for each citizen is limited to three hours instead of the four hours previously allowed.
    You can always apply for your career cheques via VDAB and Securex can take on your guidance.

    The price for one career cheque remains 40 euros, regardless of whether you use a cheque for a three- or four-hour course.

    5. Transitional scheme for redeeming academic years expires on 1 December 2020Self-employed people can regularise (equate or ‘buy off’) their years of study to aim for a higher retirement. A more advantageous regularisation system for the self-employed came into effect on 1 December 2017. This transitional period will end on 1 December 2020.

    Buying-off becomes considerably cheaper for those who graduated 10 years ago or longer at that time. The closer you are to retirement, the higher your contribution will be.

    As long it has not yet been 10 years since you graduated, you can still regularise this after the transition period at 1,529.96 euros per academic year. This amount is indexed every year.

    Do you have any questions about this?

      Contact us