Company-provided family allowance – exempted from social security contributions
Companies can, for example within a flexible reward plan, opt to grant their employees (with children) a so-called ‘family allowance’, which is an additional child benefit on top of the statutory child allowance. Recently, the Belgian Supreme Court has decided that such allowances are not to be considered as “salary” for social security purposes. Consequently,
30% ruling and 150 km rule: no systematic overcompensation according to Dutch Supreme Court
According to the Dutch Supreme Court, the 150 kilometre criterion under the 30% ruling for employees hired from abroad (expats) is EU proof. The limits of the ruling (the ‘30% of the taxable base’ and the ‘150 kilometre distance from the Dutch border’) were set in such a way that the 30% ruling does not
Meal vouchers and non-recurring collective bonuses – adjustment to maximum amounts
The Act of 6 December 2015 contained the following adjustments with respect to ‘meal vouchers’ and ‘non-recurrent collective bonuses’, applicable as from 1 January 2016.
Wage withholding tax scales as applicable for income year 2016
The Royal Decree of 16 December 2015 containing the Belgian wage withholding tax scales for income year 2016 was published in the Belgian Official Gazette of 21 December 2015. These annually updated wage withholding tax scales are applicable (for payroll purposes) to income that will be paid or attributed to individual resident or non-resident taxpayers
Adjustment with respect to the tax reduction for pension savings
A bill of law containing various provisions was recently submitted to Belgian Parliament. Amongst other measures this draft legislation contains a provision on the tax reduction for pension savings. In 2014 the European Court of Justice ruled that, as the Belgian tax reduction for pension savings is only possible for payments made to Belgian institutions and funds,
Benefit in kind – Private use of a company car: Updated formula for 2016
The new reference CO2 emission for calculating the taxable benefit in kind for the private use of a company car in the hands of company directors and employees has been published in the Royal Decree of 9 December 2015. For income year 2016, the following CO2 emission will be applied to the above taxable benefit in
New dispensation to calculate the days of presence of Belgian tax residents in Luxembourg
Just before the summer holidays, the Belgian tax authorities have published a Practice Note (Practice Note AGFisc No. 22/2015 (No. Ci.700.520) dated 1st June 2015) regarding the amicable agreement of 16 March 2015 on the application of section 15 of the Belgian-Luxembourg treaty for the avoidance of double taxation. The agreement has introduced, from 1st
Draft Program Act of 26 November 2015 – Tax measures
A draft Program Act has recently been submitted to Belgian Parliament, containing the following tax measures: When a former employee has entered into the system of unemployment with company surcharge, takes up a new employment with another employer (or becomes self-employed), he is in principle still entitled to receive the company surcharge. This surcharge (and additional
