• Service: Tax, International Executive Services, International Tax
  • Type: Regulatory update
  • Date: 10/2/2013

Belgium - Expanded list of compensation subject to social security 

October 2: A royal decree expands the range of compensation subject to social security contributions and applies the social security regime for certain out-of-service compensation.

The new rules are effective beginning 1 October 2013.

Among the types of compensation newly subject to social security contributions (both employer and employee portions) are amounts paid as:

  • Compensation following the exercise of a non-compete clause or non-solicitation clause entered into within 12 months after the termination of an employment contract
  • Compensation related to the dismissal of “protected employees” (e.g., maternity leave, time-credit, etc.)
  • Compensation paid as “client indemnity” for sales representatives

Read an October 2013 report prepared by the KPMG member firm in Belgium: Social security contributions due on specific out-of-service compensation

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