Under the regime, an allowance up to 30% of the gross annual salary (capped at 90.000 EUR) can be granted free from tax and social security contributions. On top, certain expenses such as school costs and moving expenses can be reimbursed free from tax and social security contributions. For more detailed information on the conditions and benefits, see our previous newsletters of 9 February 2022 and 9 May 2022.
The application of the expat regime thus enables employers to attract skilled personnel from abroad with an advantageous salary package at a reduced employer cost.
The scope of application was (for the non-profit sector) originally limited to non-profit organizations in the Belgian legal form of VZW’s and IVZW’s, excluding e.g., foundations or foreign non-profit organisations operating in Belgium.
Following an appeal (against this omission) to the Belgian constitutional court introduced by Tiberghien, the legislator has now extended the scope of application.
From now on, every enterprise registered with the Belgian Crossroads Bank for Enterprises (CBE / KBO / BCE / ZDU), regardless of its legal form, place of incorporation or tax residence, can benefit from the new tax regime for expats in Belgium (provided of course that all other conditions are met).
For foreign non-profit organisations, the expat regime can apply to personnel hired or seconded to Belgium as of 1 January 2023.
To apply the expat tax regime, a written application should be filed ultimately within 3 months following the date of entry into service of the expat in Belgium.
For any questions, contact the authors of this article.