Solutions for insurances and pension provisions that enable you to practise your liberal profession with peace of mind
Are you a healthcare professional or are you in the legal profession? As a member of a liberal profession, you have specific needs. Our offers of insurance and our services are adapted to the requirements of your profession and protect you efficiently in both your professional life and your personal life. We are here to listen to you and our high standards allow us to deal with all situations.
• Insure my liberal profession
• Guarantee my revenues
• Protect my employees
• Benefit from financing solutions
• Insure my liberal profession
• Guarantee my revenues
• Protect my employees
• Benefit from financing solutions
Self-employed professionals, what you need to know before selling your business
For many self-employed entrepreneurs, the proceeds from the sale of their business will be the funds that will finance their retirement. To lessen the tax burden and to enter this stage of life with peace of mind, it is necessary to follow some recommendations.
Why build up an occupational pension plan as a self-employed person?
Patience is the key word when you want to sell your business. Finding the ideal buyer and engaging in the sales process takes time. In order to be able to manage this time calmly and not to make the sale the only way to finance your retirement, we advise you to build up an occupational pension plan beforehand. This will require finding the right balance and distributing the company's results fairly between investments, dividends, salaries and welfare. This advice is all the more useful to follow since the contributions as well as the buying back of years are tax deductible.
What tax is applied for pension plans when selling a business?
According to Article 37b of the Act on Federal Direct Taxation, when the sale of a sole proprietorship gives rise to a latent reserve, the latter is incorporated into the profit of the company and therefore taxed. To lessen the tax burden, it is possible to use this latent reserve to make year buy backs and therefore significantly reduce taxable profit. The amount of these purchases is determined by the regulations of your pension fund. You must therefore be careful when choosing your pension fund.
In some cases, you can take advantage of "fictitious year buy backs". If you sell your business after the age of 55 and do not have a pension fund, the tax authorities may accept the latent reserve to be considered as a fictitious redemption. In this case, the tax levied will be equivalent to that applied for pension plans, namely 1/5th of the ordinary rates. The maximum amount of these fictitious redemptions is defined by law.
As a self-employed professional, it is therefore possible to benefit from favourable taxation.
Ask your pension broker and tax trustee for advice.
