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
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
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
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
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
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
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
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
