Belgium

Stefan Creemers International Employment Taxation Manager PKF Belgium

Changes affecting non-residents:Belgium is known for its beneficial special tax status for foreign executives who are temporarily assigned there. If these executives move (with their family) to Belgium they are deemed to be non-resident taxpayers during the full length of their assignment and shall only be taxed in Belgium on that part of their income that is related to activities physically performed in Belgium (‘travel exclusion’). Moreover special tax deductions (related to expenses to be borne by the employer) can be made even on a favourable lump sum basis. Wherever possible we now advise that a Belgian assignment should start on 1 January and the end date of the assignment should be set at 31 December (or vice versa). Planning your assignment start...