Working in Belgium via Connexion

[Tin Pot]

The problem is that you go to a foreign country asking a quite competitive rate (let's say 400/day) because you know you can use your management company so this rate may be low but you are happy with it
and suddenly they ask you to pay 50% taxes on it which becomes 200 euros per day.....(less than an employee!!!! no paid holidays, no sickness absence)
Then you have a problem....if you knew it from the begining you would have asked 600 per day and I am sure we would have managed to get that rate

...Exactly what I'm about to enter into, I've not contracted on the continent before, is 50% the story in Belgium or just a Connexions thing? From this thread I get the feeling Belgium is to be avoided full stop.

[ContractorGR]

...Exactly what I'm about to enter into, I've not contracted on the continent before, is 50% the story in Belgium or just a Connexions thing? From this thread I get the feeling Belgium is to be avoided full stop.

I am afraid Connexion was only the start. All other management companies will be asked to comply to the same rulling. You understand that Connexion will not stay in the game of 75-25 while other management companies offer better splitting and they will do whatever they can so also the other companies comply to the rulling
IMHO, with such high tax rates and social security in Belgium it makes no sense to continue here.
Belgium should do what other countries did for expats contractors and apply some 30-35% of taxes and not 50-55%
WHat kind of social state is the one who taxes 25% from the 1st euro of income??? if your income is 1 euro the government with take the 25%. There is no minimum income which is not liable to taxes in Belgium!!! Most of the European countries do not tax income < 10000 euros or similar
As I said, I will ask my agency a raise of 30%. If it is accepted I will stay, otherwise I will try to find something else outside Belgium.

[Rantor]

WHat kind of social state is the one who taxes 25% from the 1st euro of income??? if your income is 1 euro the government with take the 25%. There is no minimum income which is not liable to taxes in Belgium!!! Most of the European countries do not tax income < 10000 euros or similar.

Simply not true, it is 6,150 euros tax free allowance for 2009 (5900 in 2008 IIRC.) The social taxes (equiv to NI) are also tax deductible.

Have a look... http://fiscus.fgov.be/interfaoiffr/I...ipp_ex2009.pdf

If you live here, the tax deductions are not too bad if you have a mortgage and/or kids plus the company car is very much alive and well. On the other hand, it is generally a bit crap if you are a single guy living in an aparthotel for a mon-fri contract.

[ContractorGR]

Simply not true, it is 6,150 euros tax free allowance for 2009 (5900 in 2008 IIRC.) The social taxes (equiv to NI) are also tax deductible.

Have a look... http://fiscus.fgov.be/interfaoiffr/I...ipp_ex2009.pdf

If you live here, the tax deductions are not too bad if you have a mortgage and/or kids plus the company car is very much alive and well. On the other hand, it is generally a bit crap if you are a single guy living in an aparthotel for a mon-fri contract.

I am trying to find the goverment site where it was mentioned the following
up to 7,660 25%
7,660 - 10,760 30%
10,760- 17,920 40%
17,920 - 32,860 45%
over 32,860 50%

If it is not correct then I am happy but I am not sure it is incorrect. I am married with one kid and another kid is coming. Sure, I am not interested in buying a house in Belgium (in order to deduct from the taxes the interest of the mortgage) as I don't plan to live here for the rest of my life
Besides, in most European countries,the rent a family pays, is partially deductale from the taxes as family expenses. My accountant says that I cannot do that. I am not talking about deducting a part of my rent as 'office' which is anyway possile only if your landlord agrees to do so (most of the times they don;t as they have to pay more taxes).I am talking about the rent of a normal family (not as independent). That rent is not partially deductable as family expenses

[ContractorGR]

Simply not true, it is 6,150 euros tax free allowance for 2009 (5900 in 2008 IIRC.) The social taxes (equiv to NI) are also tax deductible.

Have a look... http://fiscus.fgov.be/interfaoiffr/I...ipp_ex2009.pdf

If you live here, the tax deductions are not too bad if you have a mortgage and/or kids plus the company car is very much alive and well. On the other hand, it is generally a bit crap if you are a single guy living in an aparthotel for a mon-fri contract.

This is coming from an official document from gov site
Is it incorrect?

B A R E M E D E B A S E
REVENU PROFESSIONNEL IMPUTE
ET REVENU ANNUEL NET
IMPOSABLE DIMINUE DU REVENU
IMPUTE
IMPOT DE BASE
de 0,01 EUR à 7.900,00 EUR 26,75 p.c.
de 7.900,01 EUR à 10.740,00 EUR 2.113,25 EUR + 32,10 p.c. de la tranche au-delà de 7.900,00 EUR
de 10.740,01 EUR à 15.560,00 EUR 3.024,89 EUR + 42,80 p.c. " " 10.740,00 EUR
de 15.560,01 EUR à 34.360,00 EUR 5.087,85 EUR + 48,15 p.c. " " 15.560,00 EUR
supérieur à 34.360,00 EUR 14.140,05 EUR + 53,50 p.c. " " 34.360,00 EUR

[Rantor]

This is coming from an official document from gov site
Is it incorrect?

B A R E M E D E B A S E
REVENU PROFESSIONNEL IMPUTE
ET REVENU ANNUEL NET
IMPOSABLE DIMINUE DU REVENU
IMPUTE
IMPOT DE BASE
de 0,01 EUR à 7.900,00 EUR 26,75 p.c.
de 7.900,01 EUR à 10.740,00 EUR 2.113,25 EUR + 32,10 p.c. de la tranche au-delà de 7.900,00 EUR
de 10.740,01 EUR à 15.560,00 EUR 3.024,89 EUR + 42,80 p.c. " " 10.740,00 EUR
de 15.560,01 EUR à 34.360,00 EUR 5.087,85 EUR + 48,15 p.c. " " 15.560,00 EUR
supérieur à 34.360,00 EUR 14.140,05 EUR + 53,50 p.c. " " 34.360,00 EUR

Yep, absolutely correct but it is based on net taxable income after deductions have been applied to the gross e.g. personal tax allowance.

I've got the tax staements for several years that show it clearly. In fact, my missus isn't workign at the oment so I use her allowance as well if we file jointly.

[ContractorGR]

Yep, absolutely correct but it is based on net taxable income after deductions have been applied to the gross e.g. personal tax allowance.

I've got the tax staements for several years that show it clearly. In fact, my missus isn't workign at the oment so I use her allowance as well if we file jointly.

OK, thanks. To be honest I am not sure this is very clear from the tax declaration my accountant prepares every year.....need to check
Thanks

[Brussels Slumdog]

The Problem in Belgium is not Tax but Tax plus SOCIAL SECURITY deductions

If you are a contractor like myself you are both an employer and an employee
so the formula is
Gross pay less management fee less expenses less Employers social contribution(25%) equals Gross taxable income .
Gross taxable income less employee social contribution 13% less taxation
equals take home pay
Example €500 day equal €10,000 less deductions per formula equals about€4000 take home pay.

Switzerland is the most profitable with low taxes and low social costs followed by Netherlands with the 30% ruling

Before taking up a contract in europe you have to understand the inpact of
social security deductions and tax deductions.

[beCo09]

Does anyone have any news? They said that today they will send us the new setup details...

[BlasterBates]

Roughly doing it legit:

Germany 65%-70% take home (outside German IR35)
Luxembourg 70%
Switzerland 75%