Reward

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 […]

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 […]

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 […]

Management exit considerations: capital gains tax treatment

Retaining and incentivising the management of portfolio companies is key for private equity firms. Managers will thus invest alongside with investors and enter into some incentive arrangements. At a future exit, they may then expect to walk away from their investment with a significant return. Belgian managers may invest through a personal holding company or […]

hughes-lamon-author

Retaining and incentivising the management of portfolio companies is key for private equity firms. Managers will thus invest alongside with investors and enter into some incentive arrangements. At a future exit, they may then expect to walk away from their investment with a significant return. Belgian managers may invest through a personal holding company or […]

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 […]

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 […]

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

The Council of Ministers has introduced a draft bill in Parliament. This draft legislation envisages two specific measures with respect to ‘meal vouchers’ and ‘non-recurring bonuses’, which are planned to enter into force as of 1 January 2016 if approved by Parliament: The maximum amount of the employer’s contribution for meal vouchers would be increased from […]

nicolas-de-limbourg-author

The Council of Ministers has introduced a draft bill in Parliament. This draft legislation envisages two specific measures with respect to ‘meal vouchers’ and ‘non-recurring bonuses’, which are planned to enter into force as of 1 January 2016 if approved by Parliament: The maximum amount of the employer’s contribution for meal vouchers would be increased from […]

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 […]

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 […]

Direct pension promise contracts need to be reported to DB2P before 31.12.2014

In 2006, the Belgian legislator decided to create a database for second pillar pensions (called ‘DB2P’). Information gathering started in 2011. DB2P will be fully operational soon. Pension institutions have a reporting obligation to DB2P with regard to all occupational pension schemes managed by them. This mandatory communication includes a recurrent upload of individual pension […]

Christiaan-Moeskops-pwc_28

In 2006, the Belgian legislator decided to create a database for second pillar pensions (called ‘DB2P’). Information gathering started in 2011. DB2P will be fully operational soon. Pension institutions have a reporting obligation to DB2P with regard to all occupational pension schemes managed by them. This mandatory communication includes a recurrent upload of individual pension […]

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 […]

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 […]

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 […]

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 […]

Expected new EU rules on executive pay in public companies. How might they impact Belgian listed companies?

Is Belgium a step ahead of the game? Over the past five years, pay policies in public companies and financial services have been under deep scrutiny. To increase transparency on pay, there has been a shift from mere recommendations to more stringent rules set down in law, especially in the field of financial services. While […]

nicolas-de-limbourg-author

Is Belgium a step ahead of the game? Over the past five years, pay policies in public companies and financial services have been under deep scrutiny. To increase transparency on pay, there has been a shift from mere recommendations to more stringent rules set down in law, especially in the field of financial services. While […]

The PwC & ISW Limits Reward Barometer

Against a backdrop of economic turbulence, attracting, motivating and retaining talent while keeping costs in check can be a challenge. Motivation is tightly linked to the rewards people receive for their labour, so while organisations are forced to do more with less, they also have to enhance the perceived value of their rewards, both financial […]

nicolas-de-limbourg-author

Against a backdrop of economic turbulence, attracting, motivating and retaining talent while keeping costs in check can be a challenge. Motivation is tightly linked to the rewards people receive for their labour, so while organisations are forced to do more with less, they also have to enhance the perceived value of their rewards, both financial […]

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 […]

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 […]

PwC was nominated for the 2013 HR Excellence Award – your vote counts!

We are delighted to announce that PwC Belgium has been nominated for the 2013 HR Excellence Awards in the following two categories: Best Compensation, Benefits & Tax Company Best HR Strategy & Transformation Consulting Company This prestigious nomination is thanks to you, our client, for the confidence, loyalty and trust you continue to place in […]

nicolas-de-limbourg-author

We are delighted to announce that PwC Belgium has been nominated for the 2013 HR Excellence Awards in the following two categories: Best Compensation, Benefits & Tax Company Best HR Strategy & Transformation Consulting Company This prestigious nomination is thanks to you, our client, for the confidence, loyalty and trust you continue to place in […]

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 […]

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 […]

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 […]

PwC was nominated for the 2012 HR Excellence Award – your vote counts!

PwC was nominated for the 2012 HR Excellence Award – your vote counts! We are delighted to announce that PwC Belgium has been nominated for the 2012 HR Excellence Awards in the following three categories: -      Best Compensation, Benefits & Rewards Company -      Best HR Strategy & Business Transformation Company -      Best Social Law, Regulatory […]

nicolas-de-limbourg-author

PwC was nominated for the 2012 HR Excellence Award – your vote counts! We are delighted to announce that PwC Belgium has been nominated for the 2012 HR Excellence Awards in the following three categories: -      Best Compensation, Benefits & Rewards Company -      Best HR Strategy & Business Transformation Company -      Best Social Law, Regulatory […]

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 […]

New changes in the taxation of company cars

As announced in our previous Headlines, the law containing various measures published in the Official Gazette on 30 December 2011 fundamentally changes the way of computing the taxable benefit in kind arising from the private use of a company car, effective 1 January 2012. As explained, the yearly taxable benefit in kind will be computed […]

nicolas-de-limbourg-author

As announced in our previous Headlines, the law containing various measures published in the Official Gazette on 30 December 2011 fundamentally changes the way of computing the taxable benefit in kind arising from the private use of a company car, effective 1 January 2012. As explained, the yearly taxable benefit in kind will be computed […]

New Belgian Personal Income Tax Measures – Update

On 30 December 2011, the Act of 28 December 2011 containing various (tax) measures was published in the Official Gazette.  It contains some – but not all – of the measures announced by our government in December of last year. The personal income tax provisions, recorded in this recent Act, concern: -       changes in the […]

nicolas-de-limbourg-author

On 30 December 2011, the Act of 28 December 2011 containing various (tax) measures was published in the Official Gazette.  It contains some – but not all – of the measures announced by our government in December of last year. The personal income tax provisions, recorded in this recent Act, concern: -       changes in the […]