Belgium - Tax Guide for Freelance Contractors
Welcome to our guide to Belgian Taxation. You will find a wealth of information which will be useful if you plan to work in, or place consultants in, Belgium.
Our tax guides give a general overview of the actual taxation rates and rules at the time of writing. There are of course many ways to legally reduce tax or social security burdens in Belgium. Please contact us for more information or an actual breakdown of your situation, and to find out more about our range of payroll and contact management services in Belgium.
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Belgian Income Tax
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Tax residents in Belgium: are liable to pay Belgian tax on their worldwide income,
Non tax residents in Belgium: are liable to pay tax only on their Belgian source - income
Individuals will be regarded as tax residents:
- if their main home or centre of economic interests is in Belgium,
- if they are registered in the civil register,
- if they are present in Belgium for more than 183 days in any 12-month period.
Married persons (if their household is established in Belgium) are taxed separately on their earned income, other items of income are aggregated and included in the taxable income of the spouse with the higher income.
Taxable income includes:
- employment income,
- most benefits in kind,
- income from property, dividends, etc.
Certain deductions are permissible for 2012 including:
- basic tax free allowance of EUR 6’070 (if income is not over EUR 25'270),
- basic tax free allowance of EUR 6’800 (if income is between EUR 25'270 - EUR 25’540, less the difference between taxable income and EUR 25’540),
- basic tax free allowance of EUR 6’800 (if income is over EUR 25’540),
- tax free allowances for children:(1st child EUR 1’400, 2nd child EUR 2’280, 3rd child EUR 4’610; 4th child EUR 5'150,
- a maximum lump-sum expense deduction of EUR 3’790,
- dependent person allowance of EUR 1’400,
- some non-business expenses - personal exemptions are granted
Income tax rates for 2012:
- 25% for the first EUR 8'350,
- 30% from EUR 8'350 up to EUR 11’890,
- 40% from EUR 11’890 up to EUR 19'810,
- 45% from EUR 19'810 up to EUR 36'300,
- 50% over EUR 36'300.
In addition to the above rates, the local municipalities may levy surcharges on the national tax at rates varying from 0% to 9.5% for residents. For non-residents a flat surcharge of 7% is levied. A similar additional surcharge of 1% (i.e. in addition to the municipal surcharge) is levied in the Brussels-Capital Region.
Generally by the 30th June of the assessment year.