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Payroll & Tax in Belgium

Belgium payroll & taxation

There are specific rules for payroll and taxation in Belgium. If the company has employees in Belgium, it must register with the Belgian social security administration for salaried workers (ONSS/RSZ) and comply with all applicable Belgian employment regulations. This affiliation will allow you and your employees to benefit from retirement allowance, family allowance, and healthcare insurance. Self-employed individuals must also register with the social insurance fund for self-employed persons.

Your Payroll Options in Belgium

Remote Payroll

A remote payroll in Belgium is where a foreign company, i.e. a non-resident company, payrolls a resident employee in Belgium. One option for a non-resident company to payroll its employees (local and foreign) in Belgium is to use a fully outsourced service like a GEO, which will employ and payroll the staff on their behalf.

Local Payroll Administration

In some cases, a company will register their business in Belgium under one of the forms available such as a Foreign Branch or Limited Liability Company, but prefer to have another company administer its payroll.  This can be accomplished through a payroll provider. It is important to note that the company, as the Employer of Record, is still fully responsible for compliance with employment, immigration, tax and payroll regulations. But the payroll calculations, payments and filings can all be outsourced to the payroll provider.

Internal Payroll

Larger companies with a commitment to Belgium may wish to run their own local payroll for all employees, foreign and local. In order to accomplish this, they will have to complete incorporation, register the business and then hire the necessary staff. There will be a need for in country human resources personnel who have the background needed to manage a Belgian payroll, and can fulfill all tax, withholding, and payroll requirements.

Fully Outsourced Payroll & Employment

Companies can outsource the employment and payroll of their staff in Belgium to a GEO, like Shield GEO. This is possible for both foreign workers and Belgian nationals. This is the easiest, fastest and safest way to payroll staff in Belgium.

Shield GEO manages all aspects of payroll for workers in Belgium, including taxes, withholding, social security payments and other statutory requirements. Shield GEO becomes the Employer of Record and employs the staff on behalf of the client.

Staff are paid monthly with tax and social security deducted at source and paid to local authorities. Shield GEO will invoice the client monthly in advance of the payroll date. The invoice consists of the Total Cost of Employment (Base salary + Employers Statutory Contributions + Additional statutory contributions) and a Management Fee. Shield GEO provides the employees with payslips.

Read more about outsourced payroll and employment through Shield GEO.

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Setting up payroll in Belgium

Information Explanation
Currency ?

EUR

Tax Figures

Information Explanation
Corporate Income Tax ?

33.99% (CIT rate of 33% + a 3% crisis “surtax”)

Income Tax Rate ?
Grossed income Tax Rate (%)
€0 – 8,710 25
€8,710 – 12,400 30
€12,400 – 20,660 40
€20,660 – 37,870 45
€37,870+ 50
Payroll Tax ?

N/A

Sales Tax ?

21%

Withholding Tax ?

25%

Employee Social Security (EE SS)

13.07% uncapped. This comprises unemployment benefit 0.87%, medical care in the case of sickness and incapacity 3.55%, sickness and incapacity benefits 1.15%, pension (superannuation) 7.5%.

Employer Social Security (ER SS)

Between 24-35% depends on a range of factors; marital status, children, age, additional deductibles. e.g. at 24.77% it is made up of the child benefit 7%, unemployment benefit 1.46%, medical care in the case of sickness and incapacity 3.8%, sickness and incapacity benefits 2.35%, occupational illnesses 1%, industrial accidents 0.3% and pension (superannuation) 8.86%.

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