Belgium Payroll Services

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Belgium Payroll Services & Tax

Belgium Payroll Providers

Bradford Jacobs’ 20 years’ experience as a leading international payroll organization puts us in prime position to deal with the complex payroll and tax regulations facing companies expanding into Belgium, where the traditionally high rates of personal and corporate taxation make expert advice highly desirable, if not essential. Bradford Jacobs are the Employer of Record (EOR) payroll experts for Belgium.

Using Professional Employer Organization (PEO) recruitment assistance and EOR payroll services is strongly recommended when entering the Belgian market, and Bradford Jacobs ensure companies always comply with the latest regulations while onboarding their new employees. Our dedicated specialists remove the burden of Belgian payroll, tax and employment laws while you focus on building your business in a new territory.

As EOR, individuals are employed through Bradford Jacobs with their income paid in the form of salary, expenses, allowances or bonuses depending on their circumstances. Employees remain under the daily operational control of the parent company.

Belgian Taxes

2017 the Belgian Government committed to overhauling their tax system, aimed at stimulating growth, creating jobs and attracting foreign investment and expansion into the country. Belgium, nevertheless, is among the highest taxed countries in Europe.

The Belgian tax authorities closely monitor compliance with payroll taxes and procedures and are becoming more proactive in applying fines for non-compliance.

Personal tax rates range from 25-50%, corporate tax is 25% and VAT 21%.

Income tax is due from anyone settled in Belgium or who have made it their center of financial interest regardless of their nationality – and it is payable on their worldwide income. Belgian income earned by individuals neither living there nor having it as a center of financial interest must pay non-residents’ tax, payable only on income earned in Belgium. Expatriate workers will normally be liable for Belgian taxes.

Individuals count as tax residents if:

  • Their main home and economic location is in Belgium, where they live for 183 days in any 12-month period
  • They are entered on the civil register
Income Rate
€13,440 25%
€13,440 – €23,720 40%
€23,720 – €41,060 45%
Over €41,060 50%

A company based in Belgium pays corporate tax on global profits and income including capital gains. It is considered ‘resident’ if it has a registered office and is managed in Belgium. The corporate tax rate was reduced to 25% in 2020 (from 29.58%) with a conditional rate of 20% for small and medium-sized enterprises (SMEs).

International workers may also claim social security benefits depending on their residency and working status. As of February 2020 the employees’ contribution is 13.07% with the employer’s contribution varying around 27%.

https://www.belgium.be/en/family/social_security_in_belgium

Taxpayers living in Belgium are also liable for communal taxes, which can be up to 9%. A surcharge of 7% applies to non-residents.

www.business.hsbc.com › pdfs › belgium-ibg-full-section

What Belgian Taxation Rules exist for Payroll?

Employers must comply with various regulations regarding tax and payroll, which include:

  • • Withholding contributions from employee’s salary and remitting them each month or quarter to the authorities
  • • Completing Form 274 to file monthly or quarterly returns, and Form 281 for the individual’s annual tax return

Additionally, employees must also file annual returns covering tax and social security payments on the authority’s website using the eID Card or mobile app ‘itsme’. If using a payroll company they need to be logged as a ‘service provider’.

The National Social Security Office (NSSO) and the Belgian Federal Public Service Employment, Labor and Social Dialogue are responsible for implementing federal, regional and local decisions. Belgium has three offices handling tax regulations which can be found here: http://financien.belgium.be/nl/E-services/FinProf

Legislative texts relating to Belgian income taxes: http://fisconet.fgov.be

General website for Belgian tax authorities: http://financien.belgium.be/nl

Belgian tax authorities closely monitor compliance and apply severe penalties if regulations are contravened. Avoid the red tape and anxiety by employing Bradford Jacobs’ global payroll services for your Belgian payroll taxes. Our Belgian PEO payroll experts ensure your company is always up-to-the-minute with changes to rules, rates or taxes. Relieved of this burden, you are free to devote the time instead to your company’s expansion.

What Payroll Options are available for Companies in Belgium?

Compared with many countries, payroll in Belgium is more complicated. As a result over 90% of Belgian employers outsource salary computations to external payroll providers, such as Bradford Jacobs, who also provide a legally compliant service and manage staff administration.

The alternative is to face a checklist including:

  • Register with the Belgian Tax Office and National Social Security Office
  • Create employment contracts
  • Calculate monthly salary, create pay slips and advise employees on tax free allowances
  • Submit wage and tax returns and social insurance forms and produce annual accounts and year-end statements
  • Create payment schedule for wages withholding tax, national insurance and net wages

This list highlights why the vast majority of Belgian employees use PEO and EOR providers to handle payroll. They avoid spending countless office days dealing with Belgian labor law¬. Before even considering operating payroll, employers must locate the staff and negotiate contract terms covering salary, compensation, benefits and termination.

Avoid this by working with Belgian payroll services specialists Bradford Jacobs. We source the candidates for you to select your new staff members and begin implementing payroll so every detail relating to salaries, tax and Belgian employment law is dealt with by the time they are in their office.

Less hassle – more productivity.

What is required to set up Belgian Payroll?

Companies that payroll staff in Belgium must comply with Belgian employment and social security regulations, which vary according to employment categories. Payroll must be established when an employee is subject to social security and/or withholding tax and the employer must register with relevant agencies.

All employees or the payroll provider must file electronic notifications with the National Social Security Office (NSSO) at the start and end of employment. These are known as DIMONA notifications and there are strict rules as to when notifications must be made.

Foreign companies employing staff temporarily or partially in Belgium must notify the NSSO before employment begins and how long it is expected to last. This is necessary for all employees who were (or still are) habitually active outside Belgium or hired from outside the country and are known as LIMOSA declarations.

Employers must electronically file social security returns every quarter, detailing hours worked, salary paid and contributions by the employer and employee. In addition Employers must retain documents relating to salary and employment conditions, a staff register and individual accounts. These must be available for the Belgian inspectorate to examine. Additional requirements apply to foreign employees who are posted to work in Belgium.

These stringent regulations make payroll outsourcing for Belgium the sensible solution to avoiding the mass of red tape. Bradford Jacobs’ success as global payroll service providers for a host of international companies will ensure you comply with all the above rules. Expanding your worldwide presence is your priority – managing all your compliance issues is ours.

https://www.belgium.be/en/work/employment_legislation

What Entitlement/Termination Terms apply to Belgian Payroll?

Employees are entitled to at least 11 consecutive hours’ rest in each 24-hour period between ending work one day and starting again the following day. When an employee works at least six hours per day, they are entitled to a break of at least 15 minutes. Breaks can also be granted for employees working less than six hours.

An employee working five days per week over a full 12-month period for one or more employers during the previous working year is entitled to 20 (working) days of paid holiday. Collective bargaining agreements in many sectors allow for more paid leave.

Notice periods at the termination of a contract vary according to a number of factors. These include length of service, type of employment (blue collar or white collar) and salary level. If the salary is less than €29,729 the notice period is three months for every five-year period of employment (the legal minimum). If employment was for five years and one day the notice period is six months. For salaries greater that this the notice period, or any severance pay in lieu of notice, termination must be agreed by the parties or it is settled by the Labor Court.

If the employer serves a dismissal notice on the employee, the notice must:

  • Be in writing in the appropriate language
  • State the start and end date of the notice period
  • Be sent by registered mail or bailiff’s 

https://www.belgium.be/en/work/employment_legislation

Dealing with Belgian employment law requires a meticulous approach and a detailed understanding of its complexities. Bradford Jacobs have the specific experience to remove the burden of dealing with these issues of Belgian payroll. As the Employer of Record for your employees we deal with every aspect of salary, social insurance, registration, withholding tax, allowances and bonuses, while you concentrate on building your business in a new territory.

Contact Bradford Jacobs’ Global EOR Payroll Services

Bradford Jacobs will assume total responsibility for your payroll administration and liaise with the Belgian Tax Office and National Social Security Office. In addition, our payroll services for Belgium include all issues relating to registration, creating contracts, calculating tax with advice on any tax-free allowances, electronic submission of forms, correspondence, annual accounts and year-end statements.

These responsibilities can be removed from your own workload by contacting Bradford Jacobs now. Our specialized knowledge of Belgian employment law has enabled us to successfully manage the payrolls of numerous contractors and employees in Belgium and elsewhere. Let’s talk