Paying your staff in Belgium can be complex. With one of the highest taxation rates within the European Union with a number of different local and national rules, it can be difficult to negotiate the red tape and fulfill your obligations if inexperienced. Add the fact that the Belgian government holds employers liable for any payroll mistakes, it’s easy to see why so many companies struggle. Outsourcing to a dedicated Belgian payroll service company like Bradford Jacobs will help you reduce costs and minimise risk and liability.
Belgian Payroll Services for Contractors
We offer a dedicated Belgian Payroll solutions specifically for contractors which can be tailored to meet your specific requirements- saving you time and money. The less time you spend thinking about Belgian payroll the more time you’ll have to concentrate on your business, so let our dedicated team of professionals handle it all on your behalf. Contact us today to find out how.
Payroll Services Belgium for Employers
- Registration with the Belgian Tax Office.
- Registration with the NSSO (National Social Security Office).
- Creation of Employment Contracts.
- Application of the Special Expatriation Status (if applicable).
- Calculation of Monthly Salary and Creation of Payslips.
- Advice about the Available Tax Free Allowances.
- Submitting of Wage Tax Returns and Forms for National Insurance.
- Correspondence with Involved Parties.
- Annual Accounts, Administration and Year End Statements.
- Creating Payment Schedule for Wage Tax, National Insurances, and Net Wages.
- Personal Income Tax Returns.
Outsourcing your Belgian Payroll
Outsourcing your payroll in Belgium can serve as a more cost-effective, simpler method of paying your employees and filing your wage tax returns on time and in full. By outsourcing payroll, you can also benefit by gaining peace of mind knowing that you are paying the correct wage tax and social security obligations in full and on time.
You won’t have to worry about incurring tax penalties for late or incomplete filing and payment. Your company and your employees can focus solely on your business goals, without ever having to worry about the complexities of payroll management.
Belgium Income Tax
You can find some general information on income tax rates, in relation to Belgium on this page. This guide also covers the income tax base for residents and non-residents, allowable tax credits and deductions, the special expatriate tax regime, capital income tax rates and information on double-taxation treaties.
Income Tax Base for Residents and Non-Residents of Belgium
Residents of Belgium
Are subject to personal income tax on their total income, from all sources. Rates vary between 25% and 50%. Residents also pay additional municipal taxes at rates varying between 0% and 9% of the total payable income tax.
Non-residents of Belgium
Are subject to personal income tax on Belgian source income only, notably on Belgian source professional income and on property income located in Belgium and on any Belgian source investment.
Individuals will be regarded as tax residents if:
- Their main home or centre of economic interests is in Belgium.
- They are registered within the civil register.
- They are present in Belgium for more than 183 days in any 12-month period.
Allowable Deductions and Tax Credits
To know the requirements for expenses that are deductible in personal income tax, consult the portal of the Belgian Government.
Special Expatriate Tax Regime
Any expatriate employed in Belgium will normally be liable towards Belgian Income Tax. Additionally, gift duty, property tax and succession duty can be relevant also. Residents of Belgium pay personal income tax on their total income from all sources worldwide on a sliding scale. Residents are also liable to pay communal and regional taxes at rates between 0% and 8/5% of the total tax payable from income. Alongside this, the special expatriate tax status also offers two imperative tax benefits to foreign executives: the “tax free expatriation allowances” and the “travel exclusion”.
Capital Tax Rate
- A 15% withholding tax is imposed on earnings from mutual funds investing more than 40% of their assets in interest-bearing securities.
- Inheritance tax ranges between 3% and 30% in Wallonia and Brussels regions with 3% to 27% in Flanders.
- A 16.5% tax is payable on gains on property held for less than 5 years.
- There is no wealth tax in Belgium.
Double Taxation Treaties
Countries with Whom a Double Taxation Treaty Have Been Signed
Services Publics Fédéral des Finances (FISCUS), (List of the double Taxation Treaties)
Withholding Taxes Dividends:
25% (15% for certain category of shares), Interest: 25% (A 15% rate applies to interest on certain government bonds and interest from regulated savings deposits in excess of the tax-exempt amount), Royalties: 25% (Rate is 15% for income from author’s and neighboring rights and from legal and compulsory licenses).
The United Kingdom and Belgium are bound by a double taxation treaty.
Usually by the 30th of June of the assessment year.
Figures Based on Sources
Belgium Social Security
Whether a Resident or a Non-Resident, when working in Belgium you are required to pay Social Security contributions on gross salary and all total earnings in Belgium.
Social Security contributions are deducted automatically at source from the salary paid, when employed by EAFS Consulting BVBA and paid directly to the National Social Security Office. In this section, you will find general information relating to Social Security Rates and Employer and Employee contributed funds.
Employers contribute to the following funds in Belgium as part of the employer contributions:
- Pensions Insurance
- Health Insurance
- Sickness Payments
- Unemployment Insurance
- Child benefits
- Labour Accidents
- Educational Leave
Employees contribute to the following funds:
- Unemployment Insurance
When you commence work in Belgium, your employer will ensure you are covered by the national social security system.
Contact us to arrange an initial consultation with our team.