Changes to the special tax regime for inbound taxpayers and inbound researchers
As already mentioned in our previous newsletter, a special tax regime for inbound taxpayers and inbound researchers has been introduced since 1 January 2022 in order to reduce the salary costs for the company of its eligible employees/company directors working in Belgium.
This special tax regime has already proven its usefulness, but the Government believes that it needs to be fine-tuned.
As a result, the following changes are implemented retroactively, effective 1 January 2025:
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The inbound taxpayer concerned must receive a gross remuneration of more than EUR 70,000 (instead of EUR 75,000) for services provided in Belgium during a calendar year. This threshold is calculated on a prorated base in case of incomplete years (start/end date of Belgian employment during the calendar year).
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The company may pay the person concerned an allowance exempted from social security and tax (the so-called “costs proper to the employer") equivalent to a maximum of 35% (instead of 30%) of the gross remuneration.
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The maximum limit of EUR 90,000 for costs proper to the employer is abolished. There is therefore no limit anymore.
The reduction in gross remuneration leads to a broadening of the scope of application.
For persons who have been working in Belgium since 1 January 2025 and who, thanks to this adaptation, can now benefit from this special tax regime, a special application deadline is provided. This is three months from the 10th day following the publication of the legislative amendment in the Belgian Official Gazette.
It's time to act!
E-mail tax@propay.be if:
- You would like more information about the special tax regime;
- You would like assistance with the preparation and submission of the (special) application for special tax status;
- You would like assistance in relation to re-evaluating existing compensation packages and/or employment contracts.
