Global

Details

  • Service: Tax, International Executive Services
  • Type: Regulatory update
  • Date: 12/6/2012

Belgium - Social security exemption extended to expatriates in Belgium 

December 6:   The Belgian social security authorities have confirmed that they agree with an extension of the social security exemption of expatriate allowances for certain expatriates assigned to Belgium.

In practice, expatriate tax and social security concessions are available for foreign executives who:


  • Perform activities that require a special knowledge and / or responsibility (executive functions)
  • Temporarily work in Belgium, and
  • Keep the center of their personal and economic interests outside of Belgium

The new policy could result in additional social security savings, as the Belgian social security authorities will allow the expatriate allowance to be “grossed up” with the foreign travel exclusion percentage.


The grossed-up amount will be exempted from Belgian social security contributions (both employer and employee contributions).


This policy applies retroactively, from 1 January 2012.


Read a December 2012 report prepared by the KPMG member firm in Belgium: Social Security Authorities Take Position on Expatriate Allowances




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