Questions about Tax
Can I be exempt from paying monthly wage withholding tax?
Some types of taxable remuneration can be exempt from withholding taxes (e.g. child benefits, or allowances that are not considered as salary i.e. costs proper to employer) or as an employer, you can be exempt from the deposit of withholding tax in specific situations (e.g. payment of overtime, remuneration of researchers).
What is the special tax regime for foreign executives?
If a foreign executive is temporarily assigned to work in Belgium or has been recruited directly abroad to temporarily work in Belgium, a special tax status can be applied whereby the so-called tax-free expatriate allowances and the salary relating to business abroad are taken out of the taxable income.
Why do I need an accountant?
As being a self-employed person, you are responsible for paying your own social security contributions and filing your company’s annual tax returns. In order to make sure you remain compliant with these formalities, we highly recommend that you work with an accountant.
How can I register with the social security or tax authorities?
As being a self-employed person: By submitting registration forms and affiliating with a social insurance fund and applying for a VAT-number.
As being an employee, you have to visit the social insurance fund of your choice in Belgium and submit an affiliation form. If you pay Belgian social security contributions, this is an obligation.
What is a gross to net calculation?
Your gross salary less the social security contributions results in the taxable salary. Some benefits in kind need to be added to this taxable salary in order to calculate the exact amount of taxes due. After deduction of the taxes and other net deductions such as the special social security contributions, the net salary is known. 3 Different tax scales depending on personal situation (single vs married, spouse with or without income, non-residents without abode) are applicable in Belgium and each year new scales are published by Royal Decree in the Official Gazette.