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
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
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
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
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)
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
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
