Contracting in Belgium - A Short Guide to Tax and Social Security

[Brussels Slumdog]

A company pays tax where it is controlled.Ok if your wife controls the company and sends you out to work

[mountaingoat]

What is there to stop someone just not bothering to register in Belgium and paying the tax in the UK and saying nothing? Is any of this enforced if you simply just don't bother to tell anyone you are there? I know we will hear tales of doom from the guys that get paid to advise on such matters but I know of an entire organisation that operates like this. There are no border checks, private landlords leave it up to tenants to register with the town hall (and many dont bother) and the various systems are not connected in any way that I can see.

I'm not recommending anyone does this I'm simply wondering how people can operate like this and not get caught. Indeed it makes me wonder why I pay for all the correct advice and compliance when people can pay nothing and not be caught.

[zuuuttt]

Ensuring legitimate operation in Belgium

Hi,

Firstly I wish I had read this thread before I setup in Belgium. I took a years contract in Belgium and it will be renewed for another year. The way I have been setup for the first year is through a management agent:

1) Salaried pay received in Belgium (paid by management co payroll) for work done in Belgium. Tax on this paid in Belgium.
2) Remainder invoiced from UK company to UK subsidiary of management company.
3) LIMOSA was filed as soon as I got to Belgium
4) I rent a private apartment
5) I registered for an ID card
6) I have not been in Belgium for 183 days during Jan1 2015 and Dec31 2015

Now having read this thread and others- before signing my second year extension. I think I would like to reexamine my options and possibly scrap the services of the management company. So as I understand it I have two options which are best: comply with 183 day rule or pay tax as a citizen. The limited co setup in Belgium by all accounts not being efficient at all.

My situation for the 12 month period of my new contract extension is likely to be:

1) I will not spend more than 183 days in Belgium
2) I will rent a private apartment
3) I have property in the UK

Therefore my questions are:

1) Can I extricate myself from the management company and operate on the 183 day rule- given that I already have been here a year operating as outlined above?
2) If not is my best option to just take full income here as a salaried or then should I setup a limited co here?

Thanks in advance.

[Fred Bloggs]

What is there to stop someone just not bothering to register in Belgium and paying the tax in the UK and saying nothing? Is any of this enforced if you simply just don't bother to tell anyone you are there? I know we will hear tales of doom from the guys that get paid to advise on such matters but I know of an entire organisation that operates like this. There are no border checks, private landlords leave it up to tenants to register with the town hall (and many dont bother) and the various systems are not connected in any way that I can see.

I'm not recommending anyone does this I'm simply wondering how people can operate like this and not get caught. Indeed it makes me wonder why I pay for all the correct advice and compliance when people can pay nothing and not be caught.

If YourCo is British, operating via a British agency, invoicing in UK £, living in B&B Monday to Friday, I reckon you're right. Doesn't make it legal though.

[mountaingoat]

If YourCo is British, operating via a British agency, invoicing in UK £, living in B&B Monday to Friday, I reckon you're right. Doesn't make it legal though.

Oh I was under no illusions about the legality of it all. Just saying that enforcement is not a strong point in Belgium. I suppose when you're the jihad capital of Europe things like this can slip through the net.

[GDL]

6 month contract for NATO and possible extensions?

Thanks for all the posts - I have found them particularly useful in relation to expenses living in Belgium/Mons and that contractor rates can be low. I appreciate the need for a skilled accountancy firm. I would wish to pay the right tax, rather than get caught out trying to avoid it. My working assumption is to pay Belgium tax.

Does anyone have specific NATO contracting experience e.g.

- expenses paid in addition to rate?
- LIMOSA and not having a degree?
- how easy it it to get extensions?
- looking at up to 3 years abroad and renting out in UK


All advice/suggestions welcome. I have read through this thread.

rgds

G

[bluepeter]

Contract offered via Umbrella company

Hi

I just got offered a contract to work for a Belgium company via a Swiss based umbrella company/agency. They tell me following the 183 day rule, I only pay a low swiss tax rate, despite just coming from the Uk. Is this as dangerous as it sounds? Or is it actually legal when i have no ties to Switzerland, aside from a nominal employment to them. Should I turn down the contract?

thanks

[Brussels Slumdog]

I
My current contract is with Belgian company and they asked me to prove that I am paying taxes in Belgium, which I am as I am a local resident.

[bluepeter]

Hi

I just got offered a contract to work for a Belgium company via a Swiss based umbrella company/agency. They tell me following the 183 day rule, I only pay a low swiss tax rate, despite just coming from the Uk. Is this as dangerous as it sounds? Or is it actually legal when i have no ties to Switzerland, aside from a nominal employment to them. Should I turn down the contract?

thanks

Can anyone provide advice, is using an umbrella company offering a tax rate instead of local taxes ever going to work?

[Fred Bloggs]

Can anyone provide advice, is using an umbrella company offering a tax rate instead of local taxes ever going to work?

I am not an expert, but the starting principle should be that you pay tax on your income where you earn it. Then work from that basis. I avoid Belgium and other jurisdictions as it seems impossible to get tax advice that you can hang your hat on in 100% certainty.