A new year brings around changes to the new expat tax regime and marks the end of the former special tax regime in Belgium

On the verge of the new year the Belgian Parliament adopted the Law of December 28, 2023, including a series of tax measures. This law includes some important additional reporting requirements linked to the new expatriate tax regime in Belgium. The ground rules of the special tax regime for inbound tax payers and inbound researchers can be found in our previous alert.

The new year also marks the end of the former expat tax. Taxpayers who still enjoyed this regime till the very last day should expect in 2024 significant financial and administrative implications.
 

New reporting obligations for employers

Transparency is a key objective of the new tax regime. For this reason, employers were initially required to provide a list of qualifying expatriates to the tax authorities before January 31st of the year following the income year. A first annual listing (covering income year 2022) should normally have been filed by January 31, 2023. However, due to the absence of a Royal Decree outlining implementation details, the reporting obligation was exceptionally suspended. The new law has now abolished this annual listing requirement and replaced it by additional reporting requirements for the employer through the annual salary forms 281.10 and 281.20.

The new forms 281.10 and 281.20 for income year 2023 will be published soon and will include the following new boxes to be completed:

• The amount of gross remuneration received (income that should be taken into account to determine the salary threshold of EUR 75.000);

• The amount of the costs proper to the employer that are deemed to cover recurring costs related to the employment in Belgium (limited to 30% of the remuneration and capped at EUR 90.000);

• The amount of cost proper to the employer that are deemed to cover other tax-exempt expenses under the special tax regime (moving costs, installation costs and school fees).

Employers will have to complete and file the salary forms for income year 2023 through Belcotax by February 29, 2024.
 

Additional reporting requirement for researchers too?

Although there is no condition linked to the salary level of a researchers, the same reporting obligations exist for this category of expatriates. This implies that the above information will also have to be included in a salary form 281.10 for researchers.
 

The former expatriate tax concessions

Effective January 1st, 2024, the former special tax status ceased to exist. Expatriates who still enjoyed the benefits of this regime need to be prepared for the possible financial consequences.

Furthermore, expatriates who have their main residency or center of economic interests in Belgium will normally be considered as Belgian tax residents as of January 1st, 2024. This comes along with several consequences:

1. They will have to report worldwide income in Belgium, including all personal income earned or located outside Belgium.
2. They will have to comply with all administrative and reporting requirements imposed on Belgian resident taxpayers (such as reporting of real estate located outside of Belgium, reporting of foreign bank accounts, tax on stock exchange transaction and tax on securities accounts).

A full overview of possible consequences can be found in our previous alert.
 

How can we help?

The annual salary statements, incorporating the newly reportable amounts, must be accurately and correctly completed. We are available to facilitate and assist companies with this reporting obligation or offer guidance where necessary.