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”
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
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
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
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
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
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
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
