Tax Figures
Corporate Income Tax
33.99% (CIT rate of 33% + a 3% crisis “surtax”)
Income Tax Rate
- €0 – 8,710: 25%
- €8,710 – 12,400: 30%
- €12,400 – 20,660: 40%
- €20,660 – 37,870: 45%
- €37,870+: 50%
Payroll Tax
N/A
Sales Tax
21%
Withholding Tax
25%
Time to prepare and Pay Taxes
161 Hours
Tax Returns Supplied
Yes
Employers Social Security and statutory contributions
Between 32-38%.
Employees Social Security and statutory contributions
13.07% uncapped. This comprises unemployment benefit 0.87%, medical care in the case of sickness and incapacity 3.55%, sickness and incapacity benefits 1.15%, pension (superannuation) 7.5%.
Payroll
There are specific rules for payroll and taxation in Belgium. If the company has employees in Belgium, it must register with the Belgian social security administration for salaried workers (ONSS/RSZ) and comply with all applicable Belgian employment regulations. This affiliation will allow you and your employees to benefit from retirement allowance, family allowance, and healthcare insurance. Self-employed individuals must also register with the social insurance fund for self-employed persons.
Remote Payroll
A remote payroll in Belgium is where a foreign company, i.e. a non-resident company, payrolls a resident employee in Belgium. One option for a non-resident company to payroll its employees (local and foreign) in Belgium is to use a fully outsourced service like a GEO, which will employ and payroll the staff on their behalf.
Local Payroll Administration
In some cases, a company will register their business in Belgium under one of the forms available such as a Foreign Branch or Limited Liability Company, but prefer to have another company administer its payroll. This can be accomplished through a payroll provider. It is important to note that the company, as the Employer of Record, is still fully responsible for compliance with employment, immigration, tax and payroll regulations. But the payroll calculations, payments and filings can all be outsourced to the payroll provider.
Internal Payroll
Larger companies with a commitment to Belgium may wish to run their own local payroll for all employees, foreign and local. In order to accomplish this, they will have to complete incorporation, register the business and then hire the necessary staff. There will be a need for in country human resources personnel who have the background needed to manage a Belgian payroll, and can fulfill all tax, withholding, and payroll requirements.
Currency
EUR
