The Belgium Government is currently preparing new draft legislation, this will include new rules for non-residents. This will likely come in for the assessment year 2015 meaning it will impact income for the year 2014. This is part of the 6th Belgium state reform and is aimed at getting a degree of autonomy within the regions, though non-resident taxation will remain a federal matter.
The new rules mean that the category of ‘non-resident with an abode in Belgium’ will no longer exist. These are currently fully entitled to personal deductions regardless of their Belgium source income proportion meaning expatriates currently benefiting from the special tax status who have foreign travel exclusion exceeding 25 percent per year will no longer be entitled to personal tax allowances.
Personal deductions may still be available where there are tax treaties in place with their home country or if they earn more than 75% of their income in Belgium and so individual circumstances should be taken into account.
If you are currently working or thinking of working in Belgium and would like to hear more about managing your income or about one of our international payroll schemes please do not hesitate to contact us on our office telephone number 0044 (0)2070971385, request a call-back, or click here to email us .