The models of salary slips (“Fiche 281.10” for employees and “Fiche 281.20” for company directors) to be used to report remuneration paid or granted in 2019 are now available on the Federal Public Service (“FPS”) of Finance’s website. The fiches 281.10 and 281.20 must be lodged electronically with the FPS before 1 March 2020.
In this respect, it is worthwhile reminding that, since 1 January 2019, a reporting obligation arises in the hands of Belgian companies for benefits granted/paid by an affiliated foreign company to employees and company directors by reason of or at the occasion of their professional activity exercised on behalf of such a Belgian company (e.g. typically share-related remuneration but it also concerns other remuneration such a for example bonus payments).
This reporting obligation is due irrespective of any recharge of costs from the foreign group entity to its Belgian subsidiary, and irrespective of any intervention/involvement of the Belgian subsidiary in the attribution/payment of the benefit.
Since 1 March 2019, wage withholding taxes must also be withheld by the Belgian subsidiary on any benefit granted/paid by an affiliated foreign company to employees and company directors by reason of or at the occasion of their professional activity exercised on behalf of such a Belgian company. These taxes withheld at source by the Belgian subsidiary must also be reported on the fiches 281.10 and 281.20.
Non compliance with these new reporting and income tax withholding obligations may trigger adverse tax consequences for the Belgian subsidiary.
