Anticipated change in the taxation of expatriates and other non-residents
Within the framework of the 6th Belgian state reform there is a focus on i.a. empowering our regions (Brussels, Flanders and Wallonia) via a limited degree of autonomy in respect of income taxes. As a result, our tax law will fundamentally change in the upcoming months. Although non-resident taxation remains a federal matter, certain regional
Denial of tax benefits resulting from different treatment for income earned in another Member State incompatible with EU law
On 12 December 2013, Belgium was sentenced by the European Court of Justice for breaching EU-law and, more precisely article 49 of the Treaty on the Functioning of the European Union (freedom of establishment). The case at hand concerned a married couple with 2 children, resident in Belgium. With respect to their tax returns for
Tax authorities target foreign source professional income
If the relevant double tax treaty allocates the right to tax employment income to another state, the income will in principle be exempted from taxes in Belgium. However, for tax residents of Belgium, foreign source professional income still needs to be reported in the Belgian personal income tax return and an exemption (with progression reserve)
The Netherlands – Prinsjesdag – Budget Day 2014
On 17 September 2013, the Dutch government announced its Budget Memorandum and the 2014 Tax Package. Two important items included in the measures proposed are: continuation of the crisis levy of 16% (employer duty) on salaries paid during 2013 exceeding the cap of EUR 150,000 introduction of a maximum deductibility threshold for pension contributions set
New daily lump-sum allowances list as from 1 April 2013
New daily lump-sum allowances list as from 1 April 2013 Reimbursements by the employer of expenses, incurred by an employee within the scope of his employment, are exempt from tax to the extent that they can be supported by appropriate documentation. The tax exemption of a lump-sum reimbursement of such expenses may also be allowed
UK-Belgium double tax treaty – New protocol published
On 28 December 2012 the protocol amending the existing double tax treaty between Belgium and the United Kingdom was published in the Official Gazette. The protocol was signed by both countries on 24 June 2009 and came into force on 24 December 2012. It is applicable as from 1 January 2013. The protocol amends the
Dutch social security contributions & formal salary split
As you may know, there are quite some upcoming changes to the legislation in the Netherlands not only from a tax perspective but also from a social security point of view. In this respect, we wish to draw your attention to a change in the Dutch social security legislation that will affect formal split employment
New social security treatment of non-taxable expatriate allowances – confirmation from the social security authorities
As indicated in our HRS headline of 30 November 2012, the Belgian social security authorities have recently changed their position in respect of the amount of tax-free allowances that can be exempted from Belgian social security, in a bid to make Belgium and its special tax regime for foreign executives more attractive. Yesterday, the social
