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

[Boo]

Let's settle this for good. I got just got reply from Belgium tax officials also and answer was just like I expected (actually "better"). According to Double Taxation Convention dd 18th May 1976 between Belgium and Finland, I do not need to pay taxes to Belgium unless I spent time there more than 183 days per calendary year if - I work for non-Belgium company not having office in Belgium. Nothing unclear about this according to Finnish AND Belgium tax officials. Situation would change if my company would have (de-facto) office in Belgium and that could happen if I spend time in Belgium than 12 months, but in theory, working 183+183 days in Belgium and paying taxes to Finland is perfectly possible and perfectly legal.

So the advice you received from the BTA is the same as what I have been posting for a couple of years now in the teeth of the many disguised Umbrellas and other parasites on this forum ? Good.

What did suprise me a bit - I do not have to fill tax return. They said that since I have no obligation to pay taxes to Belgium, there's no need for me to fill tax return. Though this will change when I register myself to municipality - Belgian tax officials will them assume by default that I am responsible to pay taxes...

My post ^^^^^#337 ^^^^ should help you here...

...after which I need to return them proof that my fiscal residence is in Finland. Should not be difficult since I have car, aparment, huge loan, wife and family, friends and everything there nor I do have Belgium bank account, car or anything and I even stay in hotel not in aparment. And trust me, I am NOT going to open Belgium bank account or anything :-)

Yep, your situation is the same as mine was and you should hopefully be in the clear. It's worth me pointing out at this stage (for the n'th time, where n is not small) that the 183 days are counted in Belgium as excluding travelling days which helps if you commute back at the weekends.

I think this clears everything up, the same response from Belgium and Finland?

Thank you all again!

Ps. Remember again, this is the case for people having their fiscal residence in Finland. YMMV if you reside in any other country.

The agreement sounds essentially identical to that which pertains between Belgium and the UK.

Glad you're sorted anyway in spite of the malevolent efforts of the purveyors of Umbrellas and the likes,

Boo2

[cojak]

I think that I should point out that I know BlasterBates and I also know that he does not work for an umbrella.

[Boo]

I think that I should point out that I know BlasterBates and I also know that he does not work for an umbrella.

I don't know BB personally in any way, but I do know that he has spread fear uncertainty and doubt all over these forums regarding the situation re working in Belgium. That misinformation has been corrected by myself in the past based upon the advice I received from a Belgian accountant and by Sleek just now on the advice he received from the BTA, no less.

If BB does not represent an Umbrella then fair enough, but I do know that the rubbish he has spouted will have put a warm glow in the heart of any such, or any related types of business, who may have read his remarks. And we have very well attested reports on these forums about the behaviour and ethics of those types of operations, particularly the Belgian variety.

Hopefully this will be an end to his nonsense, his opinions having been comprehensively trashed now by several people.


Boo

[BlasterBates]

Let's settle this for good. I got just got reply from Belgium tax officials also and answer was just like I expected (actually "better"). According to Double Taxation Convention dd 18th May 1976 between Belgium and Finland, I do not need to pay taxes to Belgium unless I spent time there more than 183 days per calendary year if - I work for non-Belgium company not having office in Belgium. Nothing unclear about this according to Finnish AND Belgium tax officials. Situation would change if my company would have (de-facto) office in Belgium and that could happen if I spend time in Belgium than 12 months, but in theory, working 183+183 days in Belgium and paying taxes to Finland is perfectly possible and perfectly legal.

What did suprise me a bit - I do not have to fill tax return. They said that since I have no obligation to pay taxes to Belgium, there's no need for me to fill tax return. Though this will change when I register myself to municipality - Belgian tax officials will them assume by default that I am responsible to pay taxes after which I need to return them proof that my fiscal residence is in Finland. Should not be difficult since I have car, aparment, huge loan, wife and family, friends and everything there nor I do have Belgium bank account, car or anything and I even stay in hotel not in aparment. And trust me, I am NOT going to open Belgium bank account or anything :-)

I think this clears everything up, the same response from Belgium and Finland?

Thank you all again!

Ps. Remember again, this is the case for people having their fiscal residence in Finland. YMMV if you reside in any other country.

You can use your Finnish company but as I mentioned earlier you still need to declare your income to the Belgian authorities.

[sleek]

You can use your Finnish company but as I mentioned earlier you still need to declare your income to the Belgian authorities.

Why are you spreading FUD? As you probably did read from my text, those Belgian authorities explicitly said that tax return is not necessary.

[surfer]

Globo, South Consulting

Just a heads up - Globo aka. South Consulting (ex) contractors are getting letters from the Financial Police in Belgium inviting them to a meeting to discuss the existence of possible split-salarial scheme.

Ask me how I know ...

[BlasterBates]

Why are you spreading FUD? As you probably did read from my text, those Belgian authorities explicitly said that tax return is not necessary.

Did you inform them you are a one man company?

[Boo]

You can use your Finnish company but as I mentioned earlier you still need to declare your income to the Belgian authorities.

Liar.

Boo

[Boo]

Just a heads up - Globo aka. South Consulting (ex) contractors are getting letters from the Financial Police in Belgium inviting them to a meeting to discuss the existence of possible split-salarial scheme.

I don't know them but do I infer that South Consulting / Globo are a Belgian management co. ? If so then sorry to say "I told you so" but you really should have read this thread and the Connexions thread first. Or search for ITECS on these forums...

Ask me how I know ...

I heard that people who worked through Management Co.s in Belgium are sometimes invited into said Co.s offices for a chat about the general situation. There is a 3rd, unintroduced party there too, who does nothing but listen sympathetically throughout the conversation...

...eventually this 3rd party turns out to be from the BTA.

So be careful who you talk to in Globo's offices or on the phone...

Boo

[surfer]

Globo

I don't know them but do I infer that Sourh Consulting / Globo are a Belgian management co. ? If so then sorry to say "I told you so" but you really should have read this thread and the Connexions thread first. Or search for ITECS on these forums...

Boo

I was aware of the Connexions thread a long time ago and went with Globo because they offered a non-split 100% payroll solution (which I paid a good rate for). ITECs offered me a similar 100% payroll solution (before Globo) but then started charging me 12% extra "tax" (PE) based on my gross which didn't show on my payslip and they could not show me any official documentation related to it (see my post in one of the ITECS threads). We fell out over that so I moved to Globo. ITECs also kept pushing me to get involved with their "Offshore Dividend scheme" (which I rejected).

So I am a bit that, having gone out of my way over the last few years to try and find a management company offering a 100% legit, all money through the Belgian tax system solution, to be called in by the OCDEFO for an "Invitation A Etre Entendu". I'll talk to a fisc lawyer before I go ... I should be pretty clean but once those guys get hold of you who knows.

Anyone know where the link between Globo and contractor names is coming from?