Belgian Payroll Tax System Overview
The Belgian payroll tax system covers various aspects such as the principle income concerned, legal basis, persons liable to pay tax, exemptions for embassy staff, and obligations of those subject to the tax. It outlines the types of income subject to taxation, obligations for withholding tax, and the rights and responsibilities of both residents and non-residents in Belgium.
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Principle Which income is concerned? Remuneration of workers Pensions Income substitution benefits (unemployment, sickness-disability) Certain income paid to non-residents Etc Who are the persons liable to tax? Debtors of income Tax withheld at source Advantages of the system Advance on final tax Spreading the tax burden over time
Legal basis INTERNATIONAL LAW Vienna Convention Conventions for the avoidance of double taxation BELGIAN DOMESTIC LAW Who are the persons liable to pay tax? What are the rights of the persons liable to pay tax? When and how is tax withheld at source carried out? Income Tax Code 1992 (CIR 92) (Articles 270 to 275) Obligations of debtors of income What income is subject to taxation at source? Obligations of persons liable to pay tax (return and payment) Drawing up tax sheets Royal Decree implementing the Income Tax Code 92 (AR/CIR 92) (Articles 86 to 95 ) Enclosure III to Royal Decree implementing the Income Tax Code 92 Rules for calculating the amount of payroll tax to be withheld.
PERSONS LIABLE TO PAY TAX Belgian residents Natural or legal persons Pay or grant In Belgium or abroad Remuneration of workers Belgian non-residents Natural or legal persons Pay or grant In Belgium or abroad Remuneration that constitutes professional expenses that are exclusively charged to professional income taxable in Belgium
Embassy staff are exempted in principle Diplomatic agents and consular officials and family members living under the same roof. Are not exempted in principle Members of the staff of embassies or consulates who have Belgian nationality; who are permanent residents in Belgium.
Obligations of the persons liable to pay tax Withholding payroll tax from remuneration Submitting a return regarding payroll tax Paying the amount of payroll tax Drawing up tax sheets
Obligation 1: Withholding payroll tax Basis documents Annex III to the Royal Decree implementing the Income Tax Code 92 contains all the rules for calculating payroll tax on income from employment applies to all income that is in principle subject to payroll tax The key formula : describes the process of calculating payroll tax applies only to normal monthly pay and to pensions and early retirement benefits Where to find the documents? http://finances.belgium.be/fr/entreprises/personnel_et_remuneration/
Obligation 1: Withholding payroll tax Basis of calculation Normal gross monthly salary after deduction of personal social security contributions (in principle 13.07% of the amount of the remuneration)
Obligation 1: Withholding payroll tax Withholding tax on remuneration Application of tax rates I, II or III of Annex III to the Royal Decree implementing the Income Tax Code 92 Discounts Family expenses Others Other income Fixed tax rate by type of income
Obligation 1: Withholding payroll tax Documentation http://finances.belgium.be/fr/entreprises/personnel_et_remunerations/ FPS Finance departments international.coordination@minfin.fed.be General Administration EXPERTISE AND STATEGIC SUPPORT - International Relations Coordination Service @ : international.coordination@minfin.fed.be General Tax Administration Info center : : +32 (0) 257/257 57 @ : infotax@cc.minfin.fed.be or aagfisc.ipp.pb@minfin.fed.be
Obligation 2: Mentioning payroll tax in the return How to declare? Mandatory electronic return (FINPROF) Within what time frame? No later than the 15thof the month following the month in which the remuneration is paid. Technique No specific software to purchase Online available programme
Obligation 2: Mentioning payroll tax in the return How to declare? Electronic return Finprof http://finances.belgium.be/fr/E-services/FinProf/ info.finprof@minfin.fed.be Additional information FAQ : http://finances.belgium.be/fr/E-services/FinProf/faq/ Debtors living in the Walloon Region Centre PME Mati res Sp cifiques/Specific Matters - Pr compte Professionnel/Withholding tax Mons Avenue Melina Mercouri 1 7000 Mons Phone No.: 0257/88 110 E-mail address: pme.mons.prp@minfin.fed.be Debtors living in the Region of Brussels Capital Centre PME Mati res Sp cifiques/Specific Matters - Pr compte Professionnel/Withholding tax Bruxelles Boulevard du Jardin Botanique 50 PO Box 3406 1000 Brussels Phone No.: 0257/52 990 E-mail address: kmo.bv.bru2.prp.pme@minfin.fed.be Debtors living in the Flemish Region Centre PME Mati res Sp cifiques/Specific Matters - Pr compte Professionnel/Withholding tax Aalst Dr. Andr Sierensstraat 16 Bo te 1 9300 Alost Phone No.: 0257/73 660 E-mail address: kmo.aalst.bv@minfin.fed.be
Obligation 2: Mentioning payroll tax in the return Technical You must have An electronic identity card or a qualified certificate (Global Sign, Isabel, Certipost,...) An internet connection and a standard browser How to access? http://finances.belgium.be/fr/E-services/FinProf/ Click on "Vers l application/To Application". Choose one option: Either "Authentification par carte d identit lectronique/Authentication with electronic identity card or "Authentification par certificat/Authentication with certificate". Or itsme
Obligation 3: Paying the payroll tax When should it be paid? No later than the 15thof the month following the month in which the remuneration is paid How should it be paid? Only On the bank account mentioned by the recovery department Using the form provided by the recovery department Always using the same registration number More information? FR NL DE TEAM PERCEPTION PRECOMPTE PROFESSIONNEL NAMUR IBAN : BE32 6792 0022 7602 Rue des Bourgeois 7/Bloc C in 5000 NAMUR teamPRP@minfin.fed.be 02 574 04 80 TEAM INNING BEDRIJFSVOORHEFFING MECHELEN IBAN : BE96 6792 0022 7905 Zwartzustersvest 24 bus 32 in 2800 MECHELEN teamBV@minfin.fed.be 02 574 05 50 TEAM EUPEN IBAN : BE15 6792 0025 9530 Vervierser Strasse 8 in 4700 Eupen Steueramt.eupen@minfin.fed.be 02 578 23 70
Obligation 4: Drawing up tax sheets What is it? It is a document listing all the income paid by an employer to their employees. Why filling out a tax sheet? This document allows the recipient of the income to complete their annual tax return. When should this document be completed? Once a year Between January 1stand March 1stof the year following the year of income. How to fill out the tax sheet? Via the online application Belcotax on Web
Obligation 4: Drawing up tax sheets Belcotax on Web What should you have at your disposal? An electronic identity card or a qualified certificate (VeriSign, Isabeml, ...) A login and a password An Internet connection and a standard browser Which login & password? www.socialsecurity.be You are registered with the social security (ONSS) You use the same codes (login and password) + identity card or qualified certificate You are not yet registered with the social security system You register beforehand via www.socialsecurity.be You will receive a login & password How to access Belcotax on Web? http://finances.belgium.be/fr/E-services/Belcotaxonweb/
Conclusions Vienna Convention Embassies and consulates are in principle not subject to payroll tax. Why withholding payroll tax In the interest of staff members In order to avoid a significant additional tax burden for them Obligations Striving to meet the 4 obligation Help? https://socialsecurity.belgium.be/fr/liens-belges Employers social secretariats Calculation of remuneration https://socialsecurity.belgium.be/fr/liens-belges Compliance with legal provisions Where to find an approved social secretariat? https://socialsecurity.belgium.be/fr/liens-belges
