We refer to the previous newsflash of 6 January 2022 in which we informed you that the ‘New expat regime’ was voted on 23 December 2021 and published on 31 December 2021 in the Official Gazette. This new legislation entered into force as from 1 January 2022. However, until now, no official position was taken by the Belgian social security authorities (‘NSSO’) regarding the treatment of the lump sum tax free expense allowances.
Earlier today, the social security authorities confirmed their point of view in which they (as widely anticipated) follow the position of the tax authorities. This means that the NSSO accepts that expense allowances granted to expats under the new regime, which are limited to a maximum of 30% on top of the gross salary (and this 30% is further limited up to an absolute maximum of EUR 90.000 per year), are exempted from employee and employer social security contributions. Consequently, the current legislation as described in article 19 of the Royal Decree of 28 November 1969 has to be adjusted. This means that the above confirmation of the point of view is therefore subject to final approval and signature of the amending Royal Decree.
With this point of view of the NSSO, fortunately, a big deal breaker on behalf of the employers and employees to opt in / start with this new Belgian special tax regime hereby disappears, as this new expat regime can still be interesting to attract qualified personnel to Belgium.
This confirmation is also in line with the old Belgian special expat regime in which no Belgian social security was applicable on the non-taxable allowances (of EUR 11.250 or EUR 29.750 as defined in the technical note).
We are looking forward to the ‘FAQ’ of the Belgian tax authorities that will give us more guidance and answers to the many remaining questions.
Our microsite is updated regularly and allows you to find the latest information on the new expat tax regime.
In case of any questions, please do not hesitate to contact Sandrine Schaumont or Philip Maertens.
