Income tax thresholds for gifts to employees have been increased
In our newsletter of 27 November, we recalled the possibility to present employees with year-end gifts, free from social security contributions and income taxes. We mentioned that, although the maximum amount of those gifts for social security purposes was increased in July, the income tax amount was not yet adjusted accordingly. However, on 5 December,
Wage withholding taxes for French residents, effective from 1 January 2019
A big change is coming for France. As from 1 January 2019, for French resident taxpayers, wage withholding tax (“prélèvement à la source” or PAS) will be applied on certain types of income (including employee’s remuneration). This measure, which was initially foreseen as of 1 January 2018 but postponed with one year, will impact many
Winter is coming – holiday gifts to employees
Old Man Winter is knocking at the door and the first Christmas trees are beginning to pop up, marking the perfect occasion to recall the possibility to present employees with year-end holiday gifts – free from social security contributions and income taxes. General principles According to the Belgian social security legislation, gifts in kind, cash
Business travel within Belgium: new indexed amounts for lump-sum cost reimbursements
If certain conditions are met, employers are allowed to make lump-sum payments, which are tax-free in the hands of the employees, in order to reimburse these employees for expenses incurred due to business travel within Belgium. As of 1 October 2018 a tax-free meal allowance of EUR 17.06 (instead of EUR 16.73 per day) is
Constitutional Court rules on application of conventional notice periods concluded before 1 January 2014
In a recent judgement, the Constitutional Court ruled that – when calculating the notice period for higher earning white collar workers who entered into service before 1 January 2014 – validly concluded agreements on the notice period that existed on 31 December 2013 should be taken into account when executing part 1 of the 2-step
Schooling clause updated
On October 4th, the Chamber approved a draft Act introducing a schooling clause for bottleneck jobs whereby the minimum salary threshold of € 34.180/year that is applicable as a condition for regular schooling clauses will no longer apply if the education to which the schooling clause relates, is for a “bottleneck job” (knelpuntberoep/métier en pénurie).
New social security treaty with Turkey
As from 1 September 2018, the new bilateral social security treaty between Belgium and Turkey has entered into force. This new treaty replaces the previous 1966 treaty and updates its provisions to reflect both the changes in the contracting states’ social security legislation and the changed nature of international employment since 1966. Out with the
Binding nature A1 forms and notion of posting: CJEU confirms and clarifies
In a recent judgement, the Court of Justice of the EU (CJEU) again confirmed the binding nature of an A1 form – even when issued retroactively – for both the competent authorities and the courts of the host Member State to which an employee is posted. In addition, the Court clarified that, if a posted
