Personal income tax

Have you thought about buying back study years for your pension?

There’s a lot of talk about buying back study years for your state pension. For some, it is particularly interesting. For others, it’s a loss. An increase in your gross pension can lead to an increase in your net pension, but this is not always the case. It is possible that an increase in your […]

nicolas-de-limbourg-author

There’s a lot of talk about buying back study years for your state pension. For some, it is particularly interesting. For others, it’s a loss. An increase in your gross pension can lead to an increase in your net pension, but this is not always the case. It is possible that an increase in your […]

Update – New upcoming tax measures – Program Act enacted

In our Newsflash of 7 November 2016 we already made reference to new upcoming tax measures. Certain of these anticipated changes have now been introduced by the Program Act of 25 December 2016, which was published in the Official Gazette on 29 December 2016. From a personal income tax perspective, the above Program Act introduces […]

nicolas-de-limbourg-author

In our Newsflash of 7 November 2016 we already made reference to new upcoming tax measures. Certain of these anticipated changes have now been introduced by the Program Act of 25 December 2016, which was published in the Official Gazette on 29 December 2016. From a personal income tax perspective, the above Program Act introduces […]

Benefit in kind – Private use of a company car: updated formula for 2017

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 on 5 December 2016 (Royal Decree of 24 November 2016). For income year 2017, the following CO2 emission will be applied to the above […]

nicolas-de-limbourg-author

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 on 5 December 2016 (Royal Decree of 24 November 2016). For income year 2017, the following CO2 emission will be applied to the above […]

Company cars, internal capital gains, withholding tax, … What are the new tax measures for the year end?

Last October, the Federal Government reached an agreement on the budget and, in this framework, on several tax measures. The most important ones relate to the taxation of company cars and the end of the tax-free step-up in the case of a contribution in capital of shares by an individual (commonly referred to as “internal […]

philippe-vanclooster-author

Last October, the Federal Government reached an agreement on the budget and, in this framework, on several tax measures. The most important ones relate to the taxation of company cars and the end of the tax-free step-up in the case of a contribution in capital of shares by an individual (commonly referred to as “internal […]

New upcoming tax measures

Recently, the Belgian Minister of Finance published a general policy regarding “public finances”, “boosting of the economy/entrepreneurial climate” and “combat against tax fraud”. Based on this policy, certain new tax measures will be introduced in the upcoming months. From a personal income tax perspective, the following changes are anticipated: further increase in the withholding tax […]

nicolas-de-limbourg-author

Recently, the Belgian Minister of Finance published a general policy regarding “public finances”, “boosting of the economy/entrepreneurial climate” and “combat against tax fraud”. Based on this policy, certain new tax measures will be introduced in the upcoming months. From a personal income tax perspective, the following changes are anticipated: further increase in the withholding tax […]

Budget 2017: New tax measures announced – Corporate tax reform reconfirmed but not yet decided

In the framework of the budget for 2017, the Federal Government reached an agreement on several tax measures. On 16 October 2016, during the policy statement, the Prime Minister announced what follows: The speculation tax for individuals on the transfer of quoted shares would be abolished as of 1 January 2017; Tax on stock exchange […]

philippe-vanclooster-author

In the framework of the budget for 2017, the Federal Government reached an agreement on several tax measures. On 16 October 2016, during the policy statement, the Prime Minister announced what follows: The speculation tax for individuals on the transfer of quoted shares would be abolished as of 1 January 2017; Tax on stock exchange […]

Update on the special tax system for foreign executives in Belgium

Recently, there have been rumours about possible changes to the special tax system for foreign executives in Belgium, creating some uncertainty around it. From the privileged contacts PwC has with the tax authorities, it appears there is no intention to change the special tax system as such but rather that the Finance Cabinet is open […]

nicolas-de-limbourg-author

Recently, there have been rumours about possible changes to the special tax system for foreign executives in Belgium, creating some uncertainty around it. From the privileged contacts PwC has with the tax authorities, it appears there is no intention to change the special tax system as such but rather that the Finance Cabinet is open […]

Costs proper to the employer – homeworking

If certain conditions are met, no income taxes and no social security contributions are due on allowances which are attributed as a ‘repayment of costs proper to the employer’. The National Social Security Office has recently decided to increase the maximum lump-sum allowance which can be attributed as a cost proper to the employer for […]

nicolas-de-limbourg-author

If certain conditions are met, no income taxes and no social security contributions are due on allowances which are attributed as a ‘repayment of costs proper to the employer’. The National Social Security Office has recently decided to increase the maximum lump-sum allowance which can be attributed as a cost proper to the employer for […]

Summary of what has changed during the summer: newly-adopted tax measures

This summer, the Parliament adopted a range of new tax measures (more details below). Other measures are currently under review at the Chamber or pending before the State Council. More details on the new tax measures are announced on our website: Tax reform in Belgium. Patent income deduction The Act of 3 August 2016 providing […]

philippe-vanclooster-author

This summer, the Parliament adopted a range of new tax measures (more details below). Other measures are currently under review at the Chamber or pending before the State Council. More details on the new tax measures are announced on our website: Tax reform in Belgium. Patent income deduction The Act of 3 August 2016 providing […]

New lump-sum amount for reimbursement of business use of private car

Employees using a privately-owned car for business purposes can now be reimbursed a lump-sum amount of EUR 0.3363 per kilometre. Costs that an employee incurs when using a privately-owned car for business purposes can be reimbursed by the employer free of income tax and exempt from social security contributions. Repayment can be made on a lump-sum basis, taking […]

nicolas-de-limbourg-author

Employees using a privately-owned car for business purposes can now be reimbursed a lump-sum amount of EUR 0.3363 per kilometre. Costs that an employee incurs when using a privately-owned car for business purposes can be reimbursed by the employer free of income tax and exempt from social security contributions. Repayment can be made on a lump-sum basis, taking […]

Lost in Transactions – Your one-stop guide for everything you need to know about BEPS and M&A

We are pleased to announce that M&A Tax & Legal Services just finalised a publication which will guide you in everything you need to know about BEPS and M&A. ‘Lost in transactions’ is a practical guide to managing M&A deals in today’s global, digital world. Please find more information and the PDF version of the […]

hughes-lamon-author

We are pleased to announce that M&A Tax & Legal Services just finalised a publication which will guide you in everything you need to know about BEPS and M&A. ‘Lost in transactions’ is a practical guide to managing M&A deals in today’s global, digital world. Please find more information and the PDF version of the […]

Cayman Tax: applicable to privately managed funds

Yesterday, the Finance Minister clarified the scope of the Cayman tax with respect to funds. According to the Minister, the tax covers private, institutional and public funds, which are de facto privately managed. Besides, should it prove necessary to legislate further, that would be done quickly and efficiently, according to the Minister. The Cayman Tax […]

patrice-delacroix-fs

Yesterday, the Finance Minister clarified the scope of the Cayman tax with respect to funds. According to the Minister, the tax covers private, institutional and public funds, which are de facto privately managed. Besides, should it prove necessary to legislate further, that would be done quickly and efficiently, according to the Minister. The Cayman Tax […]

New daily lump-sum allowances list as from 1 April 2016

An employer/company can pay daily lump-sum allowances for foreign business travel to employees or company directors in order to reimburse certain expenses. If the lump-sum reimbursements for short-term business trips abroad (not exceeding 30 calendar days) are determined on the basis of the list of allowances paid by the Federal Public Department of Foreign Affairs […]

nicolas-de-limbourg-author

An employer/company can pay daily lump-sum allowances for foreign business travel to employees or company directors in order to reimburse certain expenses. If the lump-sum reimbursements for short-term business trips abroad (not exceeding 30 calendar days) are determined on the basis of the list of allowances paid by the Federal Public Department of Foreign Affairs […]

The launch of tax audits in 2016

The Belgian tax authorities have recently announced their focus areas for upcoming tax audits in order to encourage individuals and companies to fulfil their tax obligations. As from 2013, the Belgian tax authorities started auditing certain individuals who are employed under the special tax regime for foreign executives in Belgium. When looking at the new […]

nicolas-de-limbourg-author

The Belgian tax authorities have recently announced their focus areas for upcoming tax audits in order to encourage individuals and companies to fulfil their tax obligations. As from 2013, the Belgian tax authorities started auditing certain individuals who are employed under the special tax regime for foreign executives in Belgium. When looking at the new […]

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, […]

nicolas-de-limbourg-author

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, […]

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.

nicolas-de-limbourg-author

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 […]

nicolas-de-limbourg-author

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, […]

nicolas-de-limbourg-author

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 […]

nicolas-de-limbourg-author

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 […]

nicolas-de-limbourg-author

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 […]

nicolas-de-limbourg-author

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 […]

End of year is approaching: rules of the game for gift vouchers

One option to reward employees in a tax-friendly manner at the end of this year is to provide them with a gift, i.e. gifts in kind or in cash, or vouchers for books, sporting and cultural events, movies, etc. As a general rule, gifts are in principle considered as remuneration and thus subject to social […]

bart-elias-author

One option to reward employees in a tax-friendly manner at the end of this year is to provide them with a gift, i.e. gifts in kind or in cash, or vouchers for books, sporting and cultural events, movies, etc. As a general rule, gifts are in principle considered as remuneration and thus subject to social […]

Indexation of minimum required salary for work permit of highly-qualified and managerial employees

In order to obtain a Belgian work permit for individuals in the capacity of highly qualified or managerial employees, a specific minimum salary has to be observed, as provided under Belgian immigration law. This minimum salary is indexed every year. Our office was informed by the immigration authorities of the Brussels Region about the indexation of […]

bart-elias-author

In order to obtain a Belgian work permit for individuals in the capacity of highly qualified or managerial employees, a specific minimum salary has to be observed, as provided under Belgian immigration law. This minimum salary is indexed every year. Our office was informed by the immigration authorities of the Brussels Region about the indexation of […]

Tax reform announced in the Walloon Region

Recently, the Walloon Government announced a tax reform with respect to the “tax reduction for mortgage loans for the sole and own dwelling”. In this respect, a so-called system of “chèque habitat” would be introduced. The tax reduction would be limited in time (for maximum 20 years) and depend on the net taxable income of […]

nicolas-de-limbourg-author

Recently, the Walloon Government announced a tax reform with respect to the “tax reduction for mortgage loans for the sole and own dwelling”. In this respect, a so-called system of “chèque habitat” would be introduced. The tax reduction would be limited in time (for maximum 20 years) and depend on the net taxable income of […]

Update – Netherlands – Case law on the 150 km criterion of the 30% regime

As mentioned in our headline of 27 February 2015, the European Court of Justice (‘ECJ’) issued a preliminary ruling on the question whether the 150 km criterion of the 30% regime for incoming workers is to be upheld. The ECJ was of the opinion that the 150 km criterion – in itself – does not […]

nicolas-de-limbourg-author

As mentioned in our headline of 27 February 2015, the European Court of Justice (‘ECJ’) issued a preliminary ruling on the question whether the 150 km criterion of the 30% regime for incoming workers is to be upheld. The ECJ was of the opinion that the 150 km criterion – in itself – does not […]

Update – Case law on exemption method for foreign employment income incompatible with EU Law

As mentioned in our headline of 15 July 2014, the Belgian tax authorities published a practice note (updating their position on to the attribution of personal tax benefits) after Belgium was sentenced by the European Court of Justice for breaching EU law. The relevant judgement indicated that EU law is violated where a taxpayer cannot […]

nicolas-de-limbourg-author

As mentioned in our headline of 15 July 2014, the Belgian tax authorities published a practice note (updating their position on to the attribution of personal tax benefits) after Belgium was sentenced by the European Court of Justice for breaching EU law. The relevant judgement indicated that EU law is violated where a taxpayer cannot […]

Tax reform announced in the Brussels Region

The Brussels Capital Region has recently presented its budget for 2016. Amongst others, a tax reform was announced, which will be implemented partially in 2016 and partially in 2017. In 2016, the lump-sum regional tax of EUR 89 and the additional levy of 1% on the federal personal income taxes will be abolished. Real estate […]

nicolas-de-limbourg-author

The Brussels Capital Region has recently presented its budget for 2016. Amongst others, a tax reform was announced, which will be implemented partially in 2016 and partially in 2017. In 2016, the lump-sum regional tax of EUR 89 and the additional levy of 1% on the federal personal income taxes will be abolished. Real estate […]

Belgium: new agreement on Tax Shift

On 10 October 2015, the Belgian federal government reached a new agreement on the so-called “tax shift”. The tax shift is the shift from tax on labour to other taxes. The objectives of the tax shift are: To respect the budgetary engagements; A revival of the economy by creating more jobs; Reducing labour taxes to […]

On 10 October 2015, the Belgian federal government reached a new agreement on the so-called “tax shift”. The tax shift is the shift from tax on labour to other taxes. The objectives of the tax shift are: To respect the budgetary engagements; A revival of the economy by creating more jobs; Reducing labour taxes to […]

Possible adjustment to the tax-free amount for tax equalisation for foreign executives

The Belgian tax authorities have recently introduced some changes to the so-called “technical note” detailing the calculation of the recurring tax-free allowances in the framework of the special tax regime for foreign executives (which are limited to EUR 11.250 or EUR 29.750 per year, depending on the employer’s circumstances). In many cases, the most important […]

nicolas-de-limbourg-author

The Belgian tax authorities have recently introduced some changes to the so-called “technical note” detailing the calculation of the recurring tax-free allowances in the framework of the special tax regime for foreign executives (which are limited to EUR 11.250 or EUR 29.750 per year, depending on the employer’s circumstances). In many cases, the most important […]

Cayman tax enacted – List of legal entities published

With the Program Law of 10 August 2015, the so-called “Cayman tax” has been implemented. Under this regime, certain legal constructions are treated as transparent for Belgian tax purposes, implying that income generated by them is taxable or their founders or beneficiaries. The Cayman tax is in principle applicable to income that is obtained, attributed or paid […]

With the Program Law of 10 August 2015, the so-called “Cayman tax” has been implemented. Under this regime, certain legal constructions are treated as transparent for Belgian tax purposes, implying that income generated by them is taxable or their founders or beneficiaries. The Cayman tax is in principle applicable to income that is obtained, attributed or paid […]

Belgium: agreement on tax shift

On 23 July 2015, the Belgian federal government reached an agreement on the so-called “tax shift”. The tax shift is mainly aimed at i) reducing the tax burden on labour, ii) improving the competitiveness of Belgian companies and iii) creating more jobs. It involves the introduction of a number of new tax measures that may impact […]

philippe-vanclooster-author

On 23 July 2015, the Belgian federal government reached an agreement on the so-called “tax shift”. The tax shift is mainly aimed at i) reducing the tax burden on labour, ii) improving the competitiveness of Belgian companies and iii) creating more jobs. It involves the introduction of a number of new tax measures that may impact […]

New lump-sum amount for reimbursement of business use of private car

Employees using a privately-owned car for business purposes can now be reimbursed a lump-sum amount of EUR 0.3412 per kilometre. Costs that an employee incurs when using a privately-owned car for business purposes can be reimbursed by the employer free of income tax and exempt from social security contributions. Repayment can be made on a lump-sum basis, taking […]

nicolas-de-limbourg-author

Employees using a privately-owned car for business purposes can now be reimbursed a lump-sum amount of EUR 0.3412 per kilometre. Costs that an employee incurs when using a privately-owned car for business purposes can be reimbursed by the employer free of income tax and exempt from social security contributions. Repayment can be made on a lump-sum basis, taking […]

FAQs and administrative guidelines on the partial exemption from the wage withholding tax in the framework of R&D

A partial exemption from the wage withholding tax for qualified researchers carrying out research and development activities is provided. In practice, there was a discussion about the conditions to apply this exemption. The wave of tax audits regarding the partial exemption from the wage withholding tax, more in particular in the framework of R&D, demonstrated that […]

nicolas-de-limbourg-author

A partial exemption from the wage withholding tax for qualified researchers carrying out research and development activities is provided. In practice, there was a discussion about the conditions to apply this exemption. The wave of tax audits regarding the partial exemption from the wage withholding tax, more in particular in the framework of R&D, demonstrated that […]

Online reporting of foreign bank accounts now available

As communicated earlier, all tax residents of Belgium must now report their foreign bank accounts to the Central Contact Point (CCP) with the National Bank of Belgium. Since 26 May 2015, tax residents of Belgium can also use the online tool on the website of the Central Contact Point (https://cappcc.nbb.be) to report their foreign bank […]

nicolas-de-limbourg-author

As communicated earlier, all tax residents of Belgium must now report their foreign bank accounts to the Central Contact Point (CCP) with the National Bank of Belgium. Since 26 May 2015, tax residents of Belgium can also use the online tool on the website of the Central Contact Point (https://cappcc.nbb.be) to report their foreign bank […]

Foreign bank accounts must be reported to Belgian National Bank

As from now all tax residents of Belgium must report their foreign bank accounts to the Central Contact Point (CCP) with the National Bank of Belgium. If you (or your dependent children) had a foreign bank account (of any type) during the calendar years 2011, 2012, 2013 and/or 2014, you have the obligation to report […]

nicolas-de-limbourg-author

As from now all tax residents of Belgium must report their foreign bank accounts to the Central Contact Point (CCP) with the National Bank of Belgium. If you (or your dependent children) had a foreign bank account (of any type) during the calendar years 2011, 2012, 2013 and/or 2014, you have the obligation to report […]

Proposal to increase the maximum amount for non-recurring collective bonuses

On 6 March 2015, the Federal Council of Ministers approved a draft Royal Decree to increase the maximum (gross) amount of non-recurring collective bonuses from EUR 3,100.00 to EUR 3,169.00 as from 1 January 2016. The Federal Labour Council also approved the draft Royal Decree and has now requested to increase the maximum amount to […]

nicolas-de-limbourg-author

On 6 March 2015, the Federal Council of Ministers approved a draft Royal Decree to increase the maximum (gross) amount of non-recurring collective bonuses from EUR 3,100.00 to EUR 3,169.00 as from 1 January 2016. The Federal Labour Council also approved the draft Royal Decree and has now requested to increase the maximum amount to […]

Investment deduction percentages for assessment year 2016 published

On 27 April 2015, the new percentages for investment deduction, applicable to assessment year 2016, were published in the Belgian Official Gazette. The percentages for assessment year 2016 have not changed compared to assessment year 2015. Here is a summary: 1. One-shot investment deduction Private individuals: 13.5% for investments in patents and assets that aim to promote R&D […]

philippe-vanclooster-author

On 27 April 2015, the new percentages for investment deduction, applicable to assessment year 2016, were published in the Belgian Official Gazette. The percentages for assessment year 2016 have not changed compared to assessment year 2015. Here is a summary: 1. One-shot investment deduction Private individuals: 13.5% for investments in patents and assets that aim to promote R&D […]

Budgetary control in Belgium: New tax measures announced

On 30 March 2015, the Belgian government announced new Belgian tax measures in the framework of the budgetary control. They concern: Fight against fraud The fight against tax fraud will be pursued. The estimated net revenues are MEUR 160. Cayman tax: applicable as from calendar year 2015 The “Cayman tax” would already be applicable as from calendar year […]

philippe-vanclooster-author

On 30 March 2015, the Belgian government announced new Belgian tax measures in the framework of the budgetary control. They concern: Fight against fraud The fight against tax fraud will be pursued. The estimated net revenues are MEUR 160. Cayman tax: applicable as from calendar year 2015 The “Cayman tax” would already be applicable as from calendar year […]

New daily lump sum allowances list as from 1 April 2015

An employer/company can pay daily lump-sum allowances for foreign business travel to employees or company directors in order to reimburse certain expenses. If the lump-sum reimbursements for short-term business trips abroad (not exceeding 30 calendar days) are determined on the basis of the list of allowances paid by the Federal Public Department of Foreign Affairs […]

nicolas-de-limbourg-author

An employer/company can pay daily lump-sum allowances for foreign business travel to employees or company directors in order to reimburse certain expenses. If the lump-sum reimbursements for short-term business trips abroad (not exceeding 30 calendar days) are determined on the basis of the list of allowances paid by the Federal Public Department of Foreign Affairs […]

Meal vouchers and non-recurring collective bonuses – Adjustment to maximum amounts

The Council of Ministers recently approved two draft Royal Decrees regarding meal vouchers and non-recurring collective bonuses. These Royal Decrees contain the following adjustments: The maximum amount of employer’ contribution for meal vouchers will be increased from 5.91 EUR to 6.91 EUR per voucher. Taking into account a minimum employee’s contribution of 1.09 EUR, the […]

nicolas-de-limbourg-author

The Council of Ministers recently approved two draft Royal Decrees regarding meal vouchers and non-recurring collective bonuses. These Royal Decrees contain the following adjustments: The maximum amount of employer’ contribution for meal vouchers will be increased from 5.91 EUR to 6.91 EUR per voucher. Taking into account a minimum employee’s contribution of 1.09 EUR, the […]

Additional wave of tax audits to be expected with respect to withholding tax exemptions

The amount of wage withholding taxes to be withheld by the employer is based on the withholding income tax scales published in a Royal Decree. The Belgian Income Tax Code provides for several exemptions (overtime, R&D, night and shift work, etc.) with respect to the remittance of Belgian withholding taxes. During 2014, the Belgian tax authorities […]

nicolas-de-limbourg-author

The amount of wage withholding taxes to be withheld by the employer is based on the withholding income tax scales published in a Royal Decree. The Belgian Income Tax Code provides for several exemptions (overtime, R&D, night and shift work, etc.) with respect to the remittance of Belgian withholding taxes. During 2014, the Belgian tax authorities […]

Facilitation for Belgium-Luxembourg cross-border workers

The Belgian and Luxembourg governments had a joint meeting yesterday in Brussels and came to the following agreement with respect to cross-border employment tax situations: With respect to wages taxes, a tolerance will retroactively (as from 1 January 2015) enter into force regarding the physical presence outside the (usual) country of employment. Concretely, a Belgian resident […]

nicolas-de-limbourg-author

The Belgian and Luxembourg governments had a joint meeting yesterday in Brussels and came to the following agreement with respect to cross-border employment tax situations: With respect to wages taxes, a tolerance will retroactively (as from 1 January 2015) enter into force regarding the physical presence outside the (usual) country of employment. Concretely, a Belgian resident […]

Legislative proposal for reforming the eco-voucher system introduced

Members of the largest Dutch-speaking Federal Government party (N-VA) have proposed to change the current eco voucher system in Belgium. The proposal suggests replacing the paper eco vouchers with a non-taxable cash allowance (‘net bonus’). The conditions for benefitting from the beneficial tax and social security treatment would remain unchanged. Recently, a similar proposal suggested changes […]

nicolas-de-limbourg-author

Members of the largest Dutch-speaking Federal Government party (N-VA) have proposed to change the current eco voucher system in Belgium. The proposal suggests replacing the paper eco vouchers with a non-taxable cash allowance (‘net bonus’). The conditions for benefitting from the beneficial tax and social security treatment would remain unchanged. Recently, a similar proposal suggested changes […]

Possible reform of the meal voucher system

Recently, the three Dutch-speaking Federal Government parties (CD&V, N-VA and Open VLD) have proposed changing the current meal voucher system in Belgium. The proposal suggests replacing the (paper and electronic) meal vouchers with a non-taxable cash allowance (meal allowance). The conditions for benefitting from the favourable tax and social security treatment would remain unchanged. In the […]

nicolas-de-limbourg-author

Recently, the three Dutch-speaking Federal Government parties (CD&V, N-VA and Open VLD) have proposed changing the current meal voucher system in Belgium. The proposal suggests replacing the (paper and electronic) meal vouchers with a non-taxable cash allowance (meal allowance). The conditions for benefitting from the favourable tax and social security treatment would remain unchanged. In the […]

Benefit in kind – Private use of a company car: Updated formula for 2015

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 dated 16 December 2014. For income year 2015, the reference CO2 emission for the above taxable benefit in kind is adapted […]

nicolas-de-limbourg-author

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 dated 16 December 2014. For income year 2015, the reference CO2 emission for the above taxable benefit in kind is adapted […]

Wage withholding tax scales as applicable for income year 2015

The Royal Decree of 10 December 2014 containing the wage withholding tax scales for income year 2015 was published in the Belgian Official Gazette of 16 December 2014. These updated withholding tax scales are applicable to income that is paid or attributed to resident and non-resident taxpayers of Belgium as from 1 January 2015. In […]

nicolas-de-limbourg-author

The Royal Decree of 10 December 2014 containing the wage withholding tax scales for income year 2015 was published in the Belgian Official Gazette of 16 December 2014. These updated withholding tax scales are applicable to income that is paid or attributed to resident and non-resident taxpayers of Belgium as from 1 January 2015. In […]

R&D tax benefits: only limited time to take action

Several measures have been taken to stimulate investments in R&D. One of these measures is the partial exemption of remittance of Belgian withholding taxes in the framework of research and development. As of July 2013, the exemption increased from 75% to 80%. Besides the increase in percentage, since 1 January 2014, a notification obligation has […]

nicolas-de-limbourg-author

Several measures have been taken to stimulate investments in R&D. One of these measures is the partial exemption of remittance of Belgian withholding taxes in the framework of research and development. As of July 2013, the exemption increased from 75% to 80%. Besides the increase in percentage, since 1 January 2014, a notification obligation has […]

Tech tools provided by employers – new tax and social security treatment

The social security authorities are currently working on a new measure with respect to the valuation of the benefit in kind for private use of a PC, tablet, mobile phone and internet provided by employers to their employees. If employees receive a PC, tablet, mobile phone and/or an internet connection from their employer, social security […]

nicolas-de-limbourg-author

The social security authorities are currently working on a new measure with respect to the valuation of the benefit in kind for private use of a PC, tablet, mobile phone and internet provided by employers to their employees. If employees receive a PC, tablet, mobile phone and/or an internet connection from their employer, social security […]

Stock options – Opinion on fiscal regime of stock options in case of a cashless exercise

The Court of Appeal of Ghent confirmed in its decision of 9 September 2014 that the so-called ‘cashless exercise’ of options does not prevent the application of the tax regime as mentioned under the Stock-Option Act of 26 March 1999. The case concerned a doctor company who attributed stock options on quoted shares to his managing director. These […]

nicolas-de-limbourg-author

The Court of Appeal of Ghent confirmed in its decision of 9 September 2014 that the so-called ‘cashless exercise’ of options does not prevent the application of the tax regime as mentioned under the Stock-Option Act of 26 March 1999. The case concerned a doctor company who attributed stock options on quoted shares to his managing director. These […]

Ex-officio tax relief – Extended application and clarification of the concept of ‘material error’

Within six months (as from the third working day) following the date of sending of the tax assessment notice by the Belgian tax authorities, taxpayers can file a tax claim in order to obtain a rectification. After this six-month period has expired, a rectification in case of surtax can in some cases be requested via […]

nicolas-de-limbourg-author

Within six months (as from the third working day) following the date of sending of the tax assessment notice by the Belgian tax authorities, taxpayers can file a tax claim in order to obtain a rectification. After this six-month period has expired, a rectification in case of surtax can in some cases be requested via […]

Notion of ‘vesting or payment’ of second-pillar complementary pensions aimed at being clarified by Practice Note

Article 64 of the Program Act of 22 June 2012 (B.S. 28.06.2012) has changed the tax rates applicable to lump-sum payments and surrender values of employer or company-sponsored pensions (i.e. second-pillar complementary pensions). The tax efficiency related to these types of pension plans results from the advantageous tax rates applied to deferred income. Depending on the beneficiary’s […]

nicolas-de-limbourg-author

Article 64 of the Program Act of 22 June 2012 (B.S. 28.06.2012) has changed the tax rates applicable to lump-sum payments and surrender values of employer or company-sponsored pensions (i.e. second-pillar complementary pensions). The tax efficiency related to these types of pension plans results from the advantageous tax rates applied to deferred income. Depending on the beneficiary’s […]

EU case law – Discriminatory tax treatment of foreign real estate income

According to Belgian income tax legislation, individuals who own a (secondary) house or apartment in Belgium (i.e. a built property other than their own dwelling) and who do not let out this property, are taxable on the indexed deemed rental income of the property (also known as “kadastraal inkomen” / “revenu cadastral”, which is significantly […]

nicolas-de-limbourg-author

According to Belgian income tax legislation, individuals who own a (secondary) house or apartment in Belgium (i.e. a built property other than their own dwelling) and who do not let out this property, are taxable on the indexed deemed rental income of the property (also known as “kadastraal inkomen” / “revenu cadastral”, which is significantly […]

Circular letter on the deductibility of car costs

In a circular letter dated 15 July 2014 (see link below), the Belgian Minister of Finance, Koen Geens, has elaborated on the tax deductibility of the costs relating to cars being put at the disposal of third parties in the hands of whom the corresponding benefit in kind is considered to be taxable. For Belgian […]

philippe-vanclooster-author

In a circular letter dated 15 July 2014 (see link below), the Belgian Minister of Finance, Koen Geens, has elaborated on the tax deductibility of the costs relating to cars being put at the disposal of third parties in the hands of whom the corresponding benefit in kind is considered to be taxable. For Belgian […]

OECD Publishes 2014 Update to Model Tax Convention

The OECD Council approved  the 2014 Update to the OECD Model Tax Convention (the 2014 Update) on 15 July 2014. The 2014 Update was already approved by the Committee on Fiscal Affairs on 26 June 2014. The 2014 Update can be found here. The 2014 Update mainly reflects the work that was carried out by the OECD […]

axel-smits-author

The OECD Council approved  the 2014 Update to the OECD Model Tax Convention (the 2014 Update) on 15 July 2014. The 2014 Update was already approved by the Committee on Fiscal Affairs on 26 June 2014. The 2014 Update can be found here. The 2014 Update mainly reflects the work that was carried out by the OECD […]

Update – Exemption method for foreign professional income incompatible with EU Law

As mentioned in our headline of 17 December 2013, Belgium was sentenced by the European Court of Justice for breaching EU law. The relevant judgment indicated that EU law is violated where a taxpayer cannot effectively benefit from personal tax benefits linked to his family status (e.g. increase in tax free amount for dependent children) […]

nicolas-de-limbourg-author

As mentioned in our headline of 17 December 2013, Belgium was sentenced by the European Court of Justice for breaching EU law. The relevant judgment indicated that EU law is violated where a taxpayer cannot effectively benefit from personal tax benefits linked to his family status (e.g. increase in tax free amount for dependent children) […]

Belgian corporate tax deduction rejected for stock option plan cost recharged by foreign parent company

Court of Appeal of Brussels confirms four-year old decision of Court of First Instance of Brussels. We refer to our HRS Headline of 26 May 2010. On 25 June 2014, the Court of Appeal of Brussels confirmed the decision of the Court of First Instance of Brussels of 16 April 2010. According to this decision, […]

nicolas-de-limbourg-author

Court of Appeal of Brussels confirms four-year old decision of Court of First Instance of Brussels. We refer to our HRS Headline of 26 May 2010. On 25 June 2014, the Court of Appeal of Brussels confirmed the decision of the Court of First Instance of Brussels of 16 April 2010. According to this decision, […]

Costs proper to the employer: new lump-sum amount for reimbursement of business use of private car

Employees using a privately owned car for business purposes can now be reimbursed a lump-sum amount of EUR 0.3468 per kilometre. Background Costs that an employee makes when using a privately owned car for business purposes can be reimbursed by the employer free of income tax and exempt from social security contributions. The reimbursement can […]

nicolas-de-limbourg-author

Employees using a privately owned car for business purposes can now be reimbursed a lump-sum amount of EUR 0.3468 per kilometre. Background Costs that an employee makes when using a privately owned car for business purposes can be reimbursed by the employer free of income tax and exempt from social security contributions. The reimbursement can […]

The 6th State Reform and Belgian expatriate tax

On 28 May 2014 the law of 8 May 2014, modifying the Belgian income tax code of 1992 following the 6th State Reform (Act of 6 January 2014) was published in the Official Gazette. Rules applicable until tax year 2014 (income year 2013 included) Foreign executives temporarily working in Belgium for whom the special tax […]

nicolas-de-limbourg-author

On 28 May 2014 the law of 8 May 2014, modifying the Belgian income tax code of 1992 following the 6th State Reform (Act of 6 January 2014) was published in the Official Gazette. Rules applicable until tax year 2014 (income year 2013 included) Foreign executives temporarily working in Belgium for whom the special tax […]

6th State reform: Taxation of individuals – Changes published

On the 28th of May 2014 the law reforming the Belgian Income Tax Code in light of the 6th state reform has been published in the Official Gazette. Due to this state reform Regions (Flanders, Brussels and Wallonia) will obtain increased fiscal autonomy. A portion of the personal income tax will be attributed to the […]

nicolas-de-limbourg-author

On the 28th of May 2014 the law reforming the Belgian Income Tax Code in light of the 6th state reform has been published in the Official Gazette. Due to this state reform Regions (Flanders, Brussels and Wallonia) will obtain increased fiscal autonomy. A portion of the personal income tax will be attributed to the […]

Foreign business trips – Costs proper to the employer

Foreign business trips – Costs proper to the employer Costs incurred by employees during foreign business trips can be reimbursed free of income tax by their employer on a lump sum basis, provided the amount reimbursed is in line with the expense rates applied by the government for its own state personnel. As stated in […]

nicolas-de-limbourg-author

Foreign business trips – Costs proper to the employer Costs incurred by employees during foreign business trips can be reimbursed free of income tax by their employer on a lump sum basis, provided the amount reimbursed is in line with the expense rates applied by the government for its own state personnel. As stated in […]

Tax authorities target the partial exemption of remittance of Belgian withholding taxes

The amount of Belgian withholding taxes is based on the withholding income tax scales published in a Royal Decree. The Belgian income tax code foresees several exemptions (overtime, research and development, night and shift work,…) with respect to the remittance of Belgian withholding taxes. In this respect, it should be noted that the Belgian tax […]

nicolas-de-limbourg-author

The amount of Belgian withholding taxes is based on the withholding income tax scales published in a Royal Decree. The Belgian income tax code foresees several exemptions (overtime, research and development, night and shift work,…) with respect to the remittance of Belgian withholding taxes. In this respect, it should be noted that the Belgian tax […]

Double tax treaty between China and Belgium: entry into force

The new double tax treaty between China and Belgium has entered into force. It was concluded on 7 October 2009 and it entered into force retrospectively as of 29 December 2013. It replaces the double tax treaty of 18 April 1985. The new treaty applies to withholding taxes for income received as of 1 January […]

nicolas-de-limbourg-author

The new double tax treaty between China and Belgium has entered into force. It was concluded on 7 October 2009 and it entered into force retrospectively as of 29 December 2013. It replaces the double tax treaty of 18 April 1985. The new treaty applies to withholding taxes for income received as of 1 January […]

Update of the company car benefit in kind formula for 2014

Update of the company car benefit in kind formula for 2014 Today a Royal Decree has been published that changes the formula used for determining the benefit in kind for company cars. It is dated 24 January 2014 and applies both to employees and company directors. For income year 2014, the reference CO2 emission for […]

nicolas-de-limbourg-author

Update of the company car benefit in kind formula for 2014 Today a Royal Decree has been published that changes the formula used for determining the benefit in kind for company cars. It is dated 24 January 2014 and applies both to employees and company directors. For income year 2014, the reference CO2 emission for […]

Taxation in the Netherlands: increased deductibility of Belgian social security contributions

Taxation in the Netherlands: increased deductibility of Belgian social security contributions Within the framework of the 2014 Dutch Tax Plan, a recent change was announced with respect to the deduction of Belgian employee social security contributions for Dutch income tax purposes, retrospective as of 1 January 2013. It concerns individual taxpayers whose earned income is […]

nicolas-de-limbourg-author

Taxation in the Netherlands: increased deductibility of Belgian social security contributions Within the framework of the 2014 Dutch Tax Plan, a recent change was announced with respect to the deduction of Belgian employee social security contributions for Dutch income tax purposes, retrospective as of 1 January 2013. It concerns individual taxpayers whose earned income is […]

Telework and taxation

In a recent practice note of 16 January 2014, the Belgian tax authorities expressed their point of view regarding the income tax treatment in relation to the attribution of a computer and/or internet connection and internet subscription within the framework of teleworking. The practice note is generally applicable to employees and company directors working at […]

nicolas-de-limbourg-author

In a recent practice note of 16 January 2014, the Belgian tax authorities expressed their point of view regarding the income tax treatment in relation to the attribution of a computer and/or internet connection and internet subscription within the framework of teleworking. The practice note is generally applicable to employees and company directors working at […]

Proposed change – Revisiting the meal voucher system

A recently introduced proposal to change the current meal voucher system in Belgium seeks to maintain the benefits of the current system, while eliminating the additional cost and administrative burden. The proposal suggests replacing meal vouchers with meal allowances. The conditions for benefitting from the advantageous tax and social security treatment would remain unchanged. Please […]

nicolas-de-limbourg-author

A recently introduced proposal to change the current meal voucher system in Belgium seeks to maintain the benefits of the current system, while eliminating the additional cost and administrative burden. The proposal suggests replacing meal vouchers with meal allowances. The conditions for benefitting from the advantageous tax and social security treatment would remain unchanged. Please […]

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 […]

nicolas-de-limbourg-author

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 […]

nicolas-de-limbourg-author

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 […]

Belgian tax authorities to carry out audit of expats

The authorities have informally confirmed that they will launch an audit of foreign executives who have been benefiting from the special expat tax status for over ten years. The special tax status available for expat executives in Belgium Under certain conditions, foreign executives who are temporarily assigned to work in Belgium can benefit from a […]

nicolas-de-limbourg-author

The authorities have informally confirmed that they will launch an audit of foreign executives who have been benefiting from the special expat tax status for over ten years. The special tax status available for expat executives in Belgium Under certain conditions, foreign executives who are temporarily assigned to work in Belgium can benefit from a […]

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) […]

nicolas-de-limbourg-author

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) […]

Costs proper to the employer – Belgian business trips

Costs incurred by an employee during a Belgian business trip can be reimbursed free of income tax by their employer on a lump sum basis, provided the amount reimbursed is in line with the expense rates applied by the government for its own state personnel. In a recently published Q&A, the Minister of Finance confirmed […]

nicolas-de-limbourg-author

Costs incurred by an employee during a Belgian business trip can be reimbursed free of income tax by their employer on a lump sum basis, provided the amount reimbursed is in line with the expense rates applied by the government for its own state personnel. In a recently published Q&A, the Minister of Finance confirmed […]

Tax authorities to focus on wage withholding taxes on directors’ fees

Similar to salaries paid to employees, director fees are subject to wage withholding taxes. To the extent that the wage taxes withheld do not cover the final income tax due on the directors’ fees, a tax increase will be applied. This will be the case for instance if a person has a directorship in two […]

nicolas-de-limbourg-author

Similar to salaries paid to employees, director fees are subject to wage withholding taxes. To the extent that the wage taxes withheld do not cover the final income tax due on the directors’ fees, a tax increase will be applied. This will be the case for instance if a person has a directorship in two […]

Lump sum allowances for foreign business trips exceeding 30 calendar days

An employer/company can pay daily lump-sum allowances for foreign business travel to employees or company directors in order to reimburse their expenses. In principle, no tax-free lump-sum allowances are permissible for business trips of more than 30 calendar days. However, in the past, the Rulings Commission agreed that, under certain circumstances and up to a […]

nicolas-de-limbourg-author

An employer/company can pay daily lump-sum allowances for foreign business travel to employees or company directors in order to reimburse their expenses. In principle, no tax-free lump-sum allowances are permissible for business trips of more than 30 calendar days. However, in the past, the Rulings Commission agreed that, under certain circumstances and up to a […]

Administrative fines

The Royal Decree of 24 September 2013 on administrative fines was published in the Belgian Official Gazette on 30 September 2013. This decree introduces a new scale for administrative fines. Each infringement of the requirements laid down in the Income Tax Code (e.g. incorrect or late filing of tax returns) will now give rise to […]

nicolas-de-limbourg-author

The Royal Decree of 24 September 2013 on administrative fines was published in the Belgian Official Gazette on 30 September 2013. This decree introduces a new scale for administrative fines. Each infringement of the requirements laid down in the Income Tax Code (e.g. incorrect or late filing of tax returns) will now give rise to […]

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 […]

nicolas-de-limbourg-author

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 […]

Tax reduction for service vouchers

Services paid for assistance in the household via service vouchers give rise to a tax deduction of 30% of the amounts paid. However, the tax-deductible amount is limited to EUR 1,810 (amount to be indexed) per year and per taxpayer. For payments made as from 1 July 2013, the maximum tax-deductible amount has now been […]

nicolas-de-limbourg-author

Services paid for assistance in the household via service vouchers give rise to a tax deduction of 30% of the amounts paid. However, the tax-deductible amount is limited to EUR 1,810 (amount to be indexed) per year and per taxpayer. For payments made as from 1 July 2013, the maximum tax-deductible amount has now been […]

Update – Economic Recovery Plan published in the Official Gazette

With reference to our previous HRS Headlines of 8 February 2013 and 28 May 2013, relating to the pre-draft tax bills dealing with sustainable development, we can inform you that this anticipated legislation has now been published in the Official Gazette. Among other things, it aims at affecting certain tax measures under the 2012 Economic […]

nicolas-de-limbourg-author

With reference to our previous HRS Headlines of 8 February 2013 and 28 May 2013, relating to the pre-draft tax bills dealing with sustainable development, we can inform you that this anticipated legislation has now been published in the Official Gazette. Among other things, it aims at affecting certain tax measures under the 2012 Economic […]

Draft Program Act of 3 June 2013

Following the agreement on the federal budget plan for 2013, which we discussed in our HRS Headline of 4 April 2013, the Federal Government has now s­­­­ubmitted draft legislation ( bill ) to Parliament, proposing new tax measures. The bill includes both the introduction of a uniform (withholding) tax rate of 25% (instead of the […]

nicolas-de-limbourg-author

Following the agreement on the federal budget plan for 2013, which we discussed in our HRS Headline of 4 April 2013, the Federal Government has now s­­­­ubmitted draft legislation ( bill ) to Parliament, proposing new tax measures. The bill includes both the introduction of a uniform (withholding) tax rate of 25% (instead of the […]

Economic recovery plan – Upcoming tax measures – update

As mentioned in our HRS Headline of 8 February 2013, at the initiative of the previous Minister of Finance, a pre-draft tax bill was approved in February dealing with sustainable development. The draft legislation, which was tabled in Parliament on 17 April 2013, was approved by the Chamber of Representatives on 16 May 2013 and […]

nicolas-de-limbourg-author

As mentioned in our HRS Headline of 8 February 2013, at the initiative of the previous Minister of Finance, a pre-draft tax bill was approved in February dealing with sustainable development. The draft legislation, which was tabled in Parliament on 17 April 2013, was approved by the Chamber of Representatives on 16 May 2013 and […]

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 […]

nicolas-de-limbourg-author

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 […]

Benefit in kind – Private use of company cars: Modified 2013 reference emission for petrol cars

A Royal Decree dated 3 April 2013 has changed the reference CO2 emission for petrol cars that is to be applied to determine the taxable benefit in kind for the private use of a company car by company directors and employees. For income year 2013, this reference CO2 emission for petrol driven cars is now […]

nicolas-de-limbourg-author

A Royal Decree dated 3 April 2013 has changed the reference CO2 emission for petrol cars that is to be applied to determine the taxable benefit in kind for the private use of a company car by company directors and employees. For income year 2013, this reference CO2 emission for petrol driven cars is now […]

Belgian Budget Control 2013 – new measures

After a new and challenging budget negotiation process, the Federal Government has recently reached an agreement on the federal budget plan for 2013. In this respect, amongst others the following two fiscal measures were announced. Firstly, the Federal Government has decided to apply a uniform (withholding) tax rate to liquidation bonuses as from 1 October […]

nicolas-de-limbourg-author

After a new and challenging budget negotiation process, the Federal Government has recently reached an agreement on the federal budget plan for 2013. In this respect, amongst others the following two fiscal measures were announced. Firstly, the Federal Government has decided to apply a uniform (withholding) tax rate to liquidation bonuses as from 1 October […]

High Council of Finance disagrees with Belgian tax authorities on future tax treatment of stock options

The former Minister of Finance had instructed the Belgian tax authorities to draft a number of legislative measures to simplify the Belgian tax system. On 13 December 2012, a series of proposals were presented to the “fiscal and para-fiscal” division of the High Council of Finance (Hoge Raad van Financiën/Conseil Supérieur des Finances). One of […]

nicolas-de-limbourg-author

The former Minister of Finance had instructed the Belgian tax authorities to draft a number of legislative measures to simplify the Belgian tax system. On 13 December 2012, a series of proposals were presented to the “fiscal and para-fiscal” division of the High Council of Finance (Hoge Raad van Financiën/Conseil Supérieur des Finances). One of […]

Economic Recovery plan – Upcoming tax measures – changes to the secret commissions’ tax

Following our HRS Headlines of 20 October 2011 and 16 November 2011, the pre-draft tax bill of 7 February 2013 dealing with sustainable development provides an additional possibility to avoid the special tax of 309% charged on income that is not properly reported. This additional possibility can come into play when the following conditions are […]

nicolas-de-limbourg-author

Following our HRS Headlines of 20 October 2011 and 16 November 2011, the pre-draft tax bill of 7 February 2013 dealing with sustainable development provides an additional possibility to avoid the special tax of 309% charged on income that is not properly reported. This additional possibility can come into play when the following conditions are […]

Economic Recovery plan – Upcoming tax measures

At the latest cabinet meeting, which took place on 7 February 2013, at the initiative of the Minister of Finance (Steven Vanackere), a pre-draft tax bill was approved dealing with sustainable development. This pre-draft legislation is intended to implement certain tax measures in the Economic Recovery Plan (Relanceplan) 2012, one of which is to increase […]

nicolas-de-limbourg-author

At the latest cabinet meeting, which took place on 7 February 2013, at the initiative of the Minister of Finance (Steven Vanackere), a pre-draft tax bill was approved dealing with sustainable development. This pre-draft legislation is intended to implement certain tax measures in the Economic Recovery Plan (Relanceplan) 2012, one of which is to increase […]

Update regarding the special contribution payable on high pension contributions (the so-called ‘Wijninckx bijdrage’)

To recall, if the total of contributions paid into occupational pension plans for one person exceeded EUR 30,000 in 2011, the company has to pay a special contribution of 1.5% on the excess amount. This charge is due both for employees and for self-employed company directors. For employees, the special contribution has to be reported […]

Christiaan-Moeskops-pwc_28

To recall, if the total of contributions paid into occupational pension plans for one person exceeded EUR 30,000 in 2011, the company has to pay a special contribution of 1.5% on the excess amount. This charge is due both for employees and for self-employed company directors. For employees, the special contribution has to be reported […]

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 […]

nicolas-de-limbourg-author

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 […]

nicolas-de-limbourg-author

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 condition for tax deductibility of pension contributions

Section 62 of the Program Law of 22 June 2012 has introduced a new condition for the tax deductibility of contributions paid into an occupational pension plan (by amending sections 59 §1 and 60 of the Belgian Income Tax Code).  As from 1st January 2013, pension contributions will only be deductible if the so-called “Sigedis-obligations” […]

Christiaan-Moeskops-pwc_28

Section 62 of the Program Law of 22 June 2012 has introduced a new condition for the tax deductibility of contributions paid into an occupational pension plan (by amending sections 59 §1 and 60 of the Belgian Income Tax Code).  As from 1st January 2013, pension contributions will only be deductible if the so-called “Sigedis-obligations” […]

Instructions for the special contribution on high pension contributions (the so-called ‘Wijninckx-bijdrage’) now available

Instructions for the special contribution on high pension contributions (the so-called ‘Wijninckx-bijdrage’) now available If the total of the contribution into occupational pension plans for one person exceeds EUR 30,000 in 2012, then the company needs to pay a special contribution of 1.5% on the excess amount.  This charge is due both for employees and […]

Christiaan-Moeskops-pwc_28

Instructions for the special contribution on high pension contributions (the so-called ‘Wijninckx-bijdrage’) now available If the total of the contribution into occupational pension plans for one person exceeds EUR 30,000 in 2012, then the company needs to pay a special contribution of 1.5% on the excess amount.  This charge is due both for employees and […]

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 […]

bart-elias-author

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 […]

New social security treatment of expatriate’s non taxable allowances retroactively applicable as from 1 January 2012

Context Under certain conditions, foreign executives who are temporarily assigned to work in Belgium can benefit from a special tax status. In this case, they are treated for tax purposes as non-residents of Belgium and taxed on their Belgian-source income only. The special expatriate tax status, the rules of which are laid down in an […]

bart-elias-author

Context Under certain conditions, foreign executives who are temporarily assigned to work in Belgium can benefit from a special tax status. In this case, they are treated for tax purposes as non-residents of Belgium and taxed on their Belgian-source income only. The special expatriate tax status, the rules of which are laid down in an […]

Agreement on the federal budget and economic recovery measures

Today an agreement was reached with respect to the Federal Government’s budget for 2013 and new economic recovery measures. After final intense negotiations and following a quest to find an additional 400 million euro in order to finance a decrease of employment (i.e. wage) costs for undertakings in Belgium, the following new tax measures affecting […]

nicolas-de-limbourg-author

Today an agreement was reached with respect to the Federal Government’s budget for 2013 and new economic recovery measures. After final intense negotiations and following a quest to find an additional 400 million euro in order to finance a decrease of employment (i.e. wage) costs for undertakings in Belgium, the following new tax measures affecting […]

Draft bill – various tax and financial provisions

As indicated in our headlines of 26 September and 23 July 2012, the federal government of Belgium has introduced a draft bill laying down various tax and financial provisions in the Chamber of Representatives. The bill is awaiting possible debate and approval. The greater part of the changes in tax law concerns a simplification of […]

nicolas-de-limbourg-author

As indicated in our headlines of 26 September and 23 July 2012, the federal government of Belgium has introduced a draft bill laying down various tax and financial provisions in the Chamber of Representatives. The bill is awaiting possible debate and approval. The greater part of the changes in tax law concerns a simplification of […]

New FAQ on company cars published on the tax authorities’ web site

Context   When a company car is put at the disposal of an employee, its private use triggers taxation as a benefit in kind (BIK). Private use includes all uses other than the business use. In other words, private use refers to use during evenings, weekends and holidays as well as commuting between home and […]

nicolas-de-limbourg-author

Context   When a company car is put at the disposal of an employee, its private use triggers taxation as a benefit in kind (BIK). Private use includes all uses other than the business use. In other words, private use refers to use during evenings, weekends and holidays as well as commuting between home and […]

Draft bill – various tax and financial measures – Update

As indicated in our headline of 23 July 2012, the federal government of Belgium approved a draft bill laying down various tax and financial provisions. These proposed measures include various elements that may impact the taxation of non-resident taxpayers in Belgium. Individuals who are not a resident of Belgium (for income tax purposes) are only […]

nicolas-de-limbourg-author

As indicated in our headline of 23 July 2012, the federal government of Belgium approved a draft bill laying down various tax and financial provisions. These proposed measures include various elements that may impact the taxation of non-resident taxpayers in Belgium. Individuals who are not a resident of Belgium (for income tax purposes) are only […]

Personal tax measures announced in France

1 – Introduction of two new tax rates / freezing of the tax scales Current French tax rates (per part) New French tax rates (per part) as per proposed Tax reform Hollande 0 5963 0 0 5963 0 5963 11896 5,5 5963 11896 5,5 11896 26420 14 11896 26420 14 26420 70830 30 26420 70830 […]

nicolas-de-limbourg-author

1 – Introduction of two new tax rates / freezing of the tax scales Current French tax rates (per part) New French tax rates (per part) as per proposed Tax reform Hollande 0 5963 0 0 5963 0 5963 11896 5,5 5963 11896 5,5 11896 26420 14 11896 26420 14 26420 70830 30 26420 70830 […]

“Action against changes to the Dutch 30% ruling”

“Action against changes to the Dutch 30% ruling” In our Headline of 20 September 2011, we informed you of the changes to the Dutch 30% ruling. On 1 January 2012, the 30% ruling ceases to be available to employees who’ve not lived outside a 150 km radius from the Dutch border for more than 2/3 […]

nicolas-de-limbourg-author

“Action against changes to the Dutch 30% ruling” In our Headline of 20 September 2011, we informed you of the changes to the Dutch 30% ruling. On 1 January 2012, the 30% ruling ceases to be available to employees who’ve not lived outside a 150 km radius from the Dutch border for more than 2/3 […]

Draft bill – various tax and financial measures

Draft bill – various tax and financial measures Recently, the government approved a draft bill laying down various tax and financial provisions. The proposed measures constitute a part of the budgetary action agreed by the Government and can be summarised as follows: Simplification of the Belgian personal tax system: deductible expenses will become tax reductions. […]

nicolas-de-limbourg-author

Draft bill – various tax and financial measures Recently, the government approved a draft bill laying down various tax and financial provisions. The proposed measures constitute a part of the budgetary action agreed by the Government and can be summarised as follows: Simplification of the Belgian personal tax system: deductible expenses will become tax reductions. […]

Proposed change – Tax treatment of stock options

Stock options aretaxable on the 60th day following the offer if an employee or company director has accepted the offer in writing within 60days following the offer. The taxable option value is generally calculated as a percentage of the market value of the underlying shares on the day prior to the actual offer date or […]

nicolas-de-limbourg-author

Stock options aretaxable on the 60th day following the offer if an employee or company director has accepted the offer in writing within 60days following the offer. The taxable option value is generally calculated as a percentage of the market value of the underlying shares on the day prior to the actual offer date or […]