According to reporting from De Standaard, Belgian Prime Minister Alexander De Croo is seeking to reform the favourable tax regime for expatriates in an effort to balance the country’s budget, The Brussels Times has more on the story.
Currently, foreigners living in Belgium while on a temporary work assignment are only taxed on the days that they actually worked in Belgium. In addition, they enjoy a generous expense deductible, which is part of the reason why Belgium has become a tax haven for expats.
The Court of Audit has repeatedly criticised this regime which, according to its latest report in 2015, benefits around 20,000 expatriates.
The court reportedly doubted the legality of the circular on which the scheme is based and pointed out that the “temporary nature” of a work assignment is often very relative.
Some expats benefit from the system over a significant period, making them appear less a true expatriate and more an immigrant whose primary residence is now Belgium, with no intention to return to their home country in the foreseeable future.
De Standaard reports that adjusting the current system could yield up to €35 million.
De Croo had been meeting with his deputy prime ministers since first thing Monday morning to discuss the budget ahead of Tuesday’s scheduled State of the Union Address.
In order to complete the budget, the government says another few hundred million euros will need to be found.
Source: The Brussels Times
(Link via original reporting)
According to reporting from De Standaard, Belgian Prime Minister Alexander De Croo is seeking to reform the favourable tax regime for expatriates in an effort to balance the country’s budget, The Brussels Times has more on the story.
Currently, foreigners living in Belgium while on a temporary work assignment are only taxed on the days that they actually worked in Belgium. In addition, they enjoy a generous expense deductible, which is part of the reason why Belgium has become a tax haven for expats.
The Court of Audit has repeatedly criticised this regime which, according to its latest report in 2015, benefits around 20,000 expatriates.
The court reportedly doubted the legality of the circular on which the scheme is based and pointed out that the “temporary nature” of a work assignment is often very relative.
Some expats benefit from the system over a significant period, making them appear less a true expatriate and more an immigrant whose primary residence is now Belgium, with no intention to return to their home country in the foreseeable future.
De Standaard reports that adjusting the current system could yield up to €35 million.
De Croo had been meeting with his deputy prime ministers since first thing Monday morning to discuss the budget ahead of Tuesday’s scheduled State of the Union Address.
In order to complete the budget, the government says another few hundred million euros will need to be found.
Source: The Brussels Times
(Link via original reporting)