Have you, as a director, ever paid for a software subscription, a laptop or a train ticket to visit a client with your private bank card? Then your company most likely has a credit balance on the current account standing in your name. Small amount or substantial total, the tax logic is the same. The rate changed in 2026, but not the logic or the mechanics: the statutory maximum dropped to 6%, considerably lower than in 2024 or 2025.

At a glance

A credit balance on the current account arises when you, as a director, have advanced money to your company.
For 2026, the statutory maximum is 6% interest that may be charged on a shareholder credit balance on the current account, a drop of 1.08 percentage points compared with 2025.
On the interest you pay 30% withholding tax on movable income, the Belgian rate. Often more tax-efficient than a pay rise, where social contributions and personal income tax combined easily exceed 50%.
Three pitfalls: the balance must not exceed paid-up capital plus taxed reserves, the rate must stay within the cap, and the company must actually be able to pay the interest.
In the event of insolvency, a credit balance on the current account is a subordinated debt. You rank behind the banks, the tax authorities and the suppliers.

What exactly is a current account?

A current account is a running account between a director (or shareholder) and their company. In accounting terms it is a clearing account that records all financial flows between the two: what the director receives from the company, and what the director advances to the company.

There are two types.

Debit balance on the current account. You have borrowed money from your company. For tax purposes this is treated as a potential benefit in kind: if you do not pay an interest rate aligned with market conditions on that amount, the tax authorities will add the shortfall as a taxable benefit. Best avoided.

Credit balance on the current account. You have advanced money to your company, for example by paying company expenses out of private funds. The roles are reversed: you have a claim on your company, and the company can pay interest on that claim. That is the scenario this article focuses on.

How does a credit balance on the current account work in practice?

Suppose, as a director, you have paid €30,000 in company expenses out of your own pocket during the year. Software, a new laptop, a training course, a trip abroad to visit a client. On paper the company should reimburse you, but in practice it does not. You leave the money on the current account.

The company can now pay you interest on that balance. That interest:

Is a deductible expense for the company.
Is for you a form of movable income, taxed at 30% withholding tax (a single, final levy).

The advantage compared with a classic pay rise: salary comes with social contributions and personal income tax, which together easily climb above 50%. On the interest on your current account, you pay 30%, full stop.

‘A credit balance on the current account is not a tax trick. It is simply choosing the right route for income you have already earned.’

What is the maximum rate for 2026?

FPS Finance (the Belgian Federal Public Service for Finance) publishes an annual statutory cap on the interest you can charge on a credit balance on the current account without putting the company in tax difficulty.

For the 2026 calendar year, that maximum is 6%. That is a drop of 1.08 percentage points compared with 2025, because market interest rates generally fell in 2025.

A look at the historical statutory maximum:

2023: 5.70%
2024: 8.02%
2025: 7.08%
2026: 6.00%

The method for setting the cap: the MFI interest rate for loans up to €1,000,000 with variable rate (measured in November of the previous year), increased by 2.5 percentage points.

What is the benefit in concrete euros?

A worked example for a typical director of an SME (small or medium-sized enterprise) with a credit balance on the current account of €50,000.

Credit balance on the current account: €50,000
Interest rate (market-aligned cap for 2026): 6%
Gross interest income per year: €3,000
Withholding tax (30%): €900
Net amount in your pocket: €2,100

Now compare that with a gross pay rise of €3,000. That salary carries social contributions (roughly 22% employer and 13% employee) plus personal income tax. Depending on your tax bracket, you typically keep between €800 and €1,300 net, with a noticeably higher total cost for the company.

On a balance of €50,000, that quickly works out at €700 to €1,200 a year difference in net income. No tax trick, just a correct application of the legal framework to income you have already built up.

What are the caps and risks?

Three pitfalls to know.

Pitfall 1: the balance must not be too high. The interest is only tax-deductible at company level to the extent that the current account balance does not exceed paid-up capital at the end of the financial year plus the taxed reserves at the start of the financial year.
Anyone above that threshold runs the risk that the ‘excess’ interest will be requalified as a dividend. From a tax perspective this is considerably heavier: not deductible for the company, and taxed as a dividend for the recipient.
Pitfall 2: the interest rate must not exceed the market-aligned rate. If you charge a rate higher than 6% (for 2026), the company runs the risk that the surplus will be requalified as hidden remuneration or a dividend. That triggers tax penalties.
Pitfall 3: the company must actually be able to pay the interest. If your company runs into financial difficulty, you face an additional risk. Your current account is a subordinated debt: in the event of insolvency, you typically rank as one of the last creditors, after the banks, the tax authorities and the suppliers. Leaving money on the current account therefore also exposes you to a personal credit risk.

When does a credit balance on the current account really make sense?

Three scenarios where a credit balance on the current account is structurally advantageous.

Scenario 1: you have legitimate expenses paid in advance. The classic example. You used personal funds for company expenses. The law recognises that claim, and you can earn interest on it. No artificial structure, just a reimbursement at an interest rate aligned with market conditions.
Scenario 2: you want to inject capital without changing the articles of association. A capital increase requires a notarial deed, registration with the enterprise court and publication in the Belgian Official Gazette. Total cost: quickly €1,500 to €3,000. A credit balance on the current account does not. If you want to give your company extra working capital, you can do so via a transfer to the current account, with no formalities. Tax and legally workable, on condition that you respect the caps above.
Scenario 3: you build up interest income instead of taking a pay rise. If the company sits in higher tax brackets and you personally sit in a higher bracket too, interest on a current account can deliver a higher net return per euro paid out than additional salary. You do need to review this every year, because tax brackets and market interest rates shift.

When is it better not to do it?

Three red flags where a credit balance on the current account is unwise from a tax or business perspective.

Red flag 1: the company is already close to or above the cap. If the current account balance is already near ‘paid-up capital plus taxed reserves’, every additional euro advanced increases the risk of requalified dividend taxation.
Red flag 2: the company has cash flow problems. Tying up money in a current account inside a company that may have to close its books in two years is something you, as a director, will feel personally. You would not put private money into a wobbly business, not even your own.
Red flag 3: you plan to exit the company at some point. On the sale or transfer of your shares, recovering a current account balance is not automatic. It has to be settled contractually in the share transfer agreement, and the tax position can be complex. Always have this reviewed by a lawyer and a tax adviser before you leave large amounts structurally sitting on the current account.

What does by Watson do?

We support directors concretely with:

Setting the optimal current account interest rate each year, within the statutory maximum.
Calculating the tax impact of current account interest versus a pay rise or a dividend, in your specific situation.
Monitoring the caps (paid-up capital plus taxed reserves) so that not a single euro of interest is requalified as a dividend.
Setting up correct current account bookkeeping for new companies.
Providing legal and tax support for current account arrangements in company transfers.

Frequently asked questions

What is the maximum interest rate in 2026?

6%. This is the statutory market-aligned maximum for the 2026 calendar year.

Do I have to pay myself interest every year?

Not mandatory. You can also charge no interest, in which case the company has an interest-free loan from you. But then you leave a tax benefit on the table.

Can I freely deposit and withdraw amounts from the current account?

In principle yes, but every movement should be correctly recorded in the books. Frequent large deposits and withdrawals can raise questions during a tax audit.

What happens to my current account balance in the event of insolvency?

You become an ordinary creditor, subordinated to the tax authorities and certain other preferred creditors. In practice this often means: little to no recovery. That is why a current account balance in a company in difficulty is a risk.

Do I need to draw up a written loan agreement?

Not legally required, but strongly recommended, certainly for large amounts. A simple agreement setting out the principle (short-term claim on the company), the interest rate, and the repayment terms helps when tax questions arise.

Do non-cash advances also count?

No. Only financial advances (money) qualify. Advances in kind, for instance the use of private equipment, fall under a different tax regime.

Is your credit balance on the current account set up for optimal tax treatment?

At by Watson we run an annual current account check for directors: optimal interest rate, verification of the caps, comparison with a pay rise or a dividend. Part of our standard follow-up. For questions or for a new company, plan a conversation via bywatson.be/contact.

Shareholder credit balance on the current account in 2026: when it pays off, when it carries risk