Our International Employment Services specialists cover all aspects related to international or cross-border employment. From the structuring of an assignment to providing guidance in international employment situations, personal income tax and social security advisory.
The complex legislative landscape of Belgium offers a variety of cost saving opportunities. Together with the international treaties which bind countries, our specialists can offer tax advice on a wide range of remuneration techniques and salary or assignment structures.
The Belgian special tax regime for incoming taxpayers and for incoming researchers is an example of such a specific salary structure. The Belgian tax administration grants special tax concessions to certain non-Belgian taxpayers who have been assigned temporarily to exercise an activity in Belgium.
The special tax regime has been created by the Belgian government to attract foreign multinational companies to stimulate economic growth and create new job opportunities. The advantages of the special tax regime are significant for both employer and employee. RSM Belgium can provide advice and help you with the timely request for the application of the special tax regime with the Belgian tax authorities.
Working in a cross-border context does not only have potential tax consequences, but also impacts social security. This can affect your employees’ pensions as well as disability and sickness allowances. Within Europe, persons to whom the EU-Regulations apply are subject to the legislation of a single member state only. Usually, the legislation of the member state where the activity is carried out applies (“lex loci laboris”). As many deviations to this general rule exist, our specialists can offer guidance. In addition, we can assist with certain compliance matters such as the A1 certificate or certificate of coverage.
When employees are working in cross-border situations, the tax and social security consequences of employment in more than two countries can be significant. Personal income tax can be due in more than one country and corporate tax consequences can arise. It should also be determined in what country social security is due. Setting up a salary split is a salary optimization technique to ensure a higher net result for the individual. Various formalities should however be fulfilled and a proper payroll implementation is an absolute requirement. Together with our offices in other countries, RSM Belgium can help you structure the salary split, ensure legal compliance and take care of a correct practical implementation.