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

[Brussels Slumdog]

30% what?

hi, my hubby was offered a job in brussels for a year for 390 eur initially then when he turned it down, he was offered with 500 eur, in a bank/financial company (this is his first time to do contracting and be on financial sector) i wonder if its worth it?

with him having the year's contract, he'll be considered as tax resident? the agent said he only needs to pay 30%, is that true? he has set up a limited company, and plan to get an accountant in belgium, is that correct? or he needs to get a separate UK accountant?

please help.

Individual with no company traveling back to UK each weekend

500 a day equals 10000 Gross less 33% employers insurance less 50% tax less 13% employee tax
about 4000 net less his actual expenses,which does not leave him much to spend on you.

As an individual Belgian tax payer you cant normally claim living in a hotel + flights to UK

He will be a Belgian tax resident and a UK tax resident so you will need an army of tax advisers not accountants. His UK company if not set up correctly could be deemed a belgian company if he is the sole owner

[Fred Bloggs]

hi, my hubby was offered a job in brussels for a year for 390 eur initially then when he turned it down, he was offered with 500 eur, in a bank/financial company (this is his first time to do contracting and be on financial sector) i wonder if its worth it?

with him having the year's contract, he'll be considered as tax resident? the agent said he only needs to pay 30%, is that true? he has set up a limited company, and plan to get an accountant in belgium, is that correct? or he needs to get a separate UK accountant?

please help.

IMO, it isn't worth the bother of going to Belgium.

[globalprogrammer]

Question: Programming for Global Clients via UK Ltd but living in Belgium...

Thanks to people on this board and this thread for the info and experiences about tax issues in Belgium. In particular many many thanks to Nodric for the very informative answers, it's helped to shine a light on the whole subject. I had no idea about these matters before.

My situation is that I'm going to be doing programming work on a one-off basis for a series of different clients located around the world. Communication and projects will be managed pretty well entirely online. It will be very short term stuff, not working "full time" for any one client and not via any agencies.

Im going to be selling my services direct via a ltd company I'm setting up in the UK (I dont want a Belgian bvba or whatever, since I deal with english speaking clients and I want a UK ltd).

I'm living here in Belgium, at least at the moment. The clients will be globally based not in Belgium.

In other words, its an internet-based business. I wont have an office here as such, just working from home via laptop - or anywhere else I happen to be for that matter.

There's a number of issues that come to mind here..

Will I have to pay tax and SS here in Belgium?

And would my UK ltd have to pay corporation tax in Belgium - or in UK (or both?? horror of horrors http://forums.contractoruk.com/images/smilies/mad.gif)

Then there's the issue of how to do it.. pay myself a nominal salary as managing director and retain the rest as dividends..

Maybe that would be best from the social security angle.

Any thoughts on this?

Many thanks in advance!

Also, anyone have any tips for a good accountant in Belgium, preferably Brussels or Antwerp or anywhere in between?

Thanks again!!

[Brussels Slumdog]

Two basic concepts - whether Belgium or elsewhere

You need to understand two basic concepts
1 Residency How each country determines how you become a tax resident The general rule is after 180 days. Some countries like the UK only count the actual days in the country other countries like Germany count from day one until you leave - Anmeldung bis abmeldung and dont care if you leave in between. US citizens are always tax residents whereas UK citizens like me can become non residents
2 Double taxation Not all countries tax foreign income the same

Tax residency means you pay tax on your world wide income and that normally means you and any companies you directly own.

[redgiant]

I have an interview coming up with a multinational but the work is based in Brussels. I intend to contract with my UK LTD through an agency.

Judging from the wealth of information on this thread can anyone recommend a tax expert I could contact regarding this?

Thanks in advance.

[balajo]

I am deemed a Belgian resident based on the fact that my wife and her son are Belgians and she owns the house here (183 days being irrelevant). Being a Belgian tax resident and not working in Belgium is actually better that being a UK resident and not working in the UK. In 2008 I worked in Switzerland and Germany only ie zero Belgian income. 2009/2010 Netherlands but I have now been on the bench for 3 weeks so I could end up ABB(Anywhere but Belgium) or Belgium.
Under Belgian double taxation rules all this income was exempt. Under UK double taxation rules I would have paid the difference between the UK rate(40) and the Swiss tax rate(20)

DUTCH ADVICE

If you work in the Netherlands you now need in addition to the SS that is deducted by your ManCO, private
health insurance which will cost you for the absolute minimum €100 month. I was fined €120 for registering too late
The SS deducted from salary goes to the unemployed and retired. The Private insurance insures you.
With this private insurance I otained an E106 so my SIS card in Belgium remains valid.

Hi slumdog, I just want to know how did the dutch authorities figure out that you hadn't paid the health insurance? did you register? and what agency fined you?

[Boo]

Im going to be selling my services direct via a ltd company I'm setting up in the UK (I dont want a Belgian bvba or whatever, since I deal with english speaking clients and I want a UK ltd).

I'm living here in Belgium, at least at the moment. The clients will be globally based not in Belgium.

In other words, its an internet-based business. I wont have an office here as such, just working from home via laptop - or anywhere else I happen to be for that matter.

There's a number of issues that come to mind here..

Will I have to pay tax and SS here in Belgium?

Yes, you will be resident in Belgium and will pay Belgian tax and SS on your global income, including that of your UK company. Your UK Ltd Co. will pay UK tax and will need to fill in UK tax returns etc, however you should be able to deduct tax you pay in the UK from tax you owe in Belgium under the joint taxation treaty. This will end up with you paying Belgian levels of tax and SS, since these are way higher than the UK.

Really, the solution you propose is the worst of all worlds and you would be much better off either moving to the UK or else setting up a Belgian company of one type or another - that would give you the best advantage obtainable within the law.

Also, anyone have any tips for a good accountant in Belgium, preferably Brussels or Antwerp or anywhere in between?

Google for "accountant antwerp site:be" and pick one near enough to visit to discuss things face to face.

Hth,

Boo

[Brussels Slumdog]

E101

Hi slumdog, I just want to know how did the dutch authorities figure out that you hadn't paid the health insurance? did you register? and what agency fined you?

I needed an E106 or E101 or S1 as it is now called so I could continue with my Belgian SS, and you have to have the private health cover to receive the E101. The private insurance company on behalf of the government fined me for taking out the insurance only after 3 months

[Blues]

What Happens if the Walls Coming Crashing Down?

Does anyone know of a tax advisor in Brussels with experience of dealing with tax investigations on IT contractors?

Thanks very much indeed.

[balajo]

I needed an E106 or E101 or S1 as it is now called so I could continue with my Belgian SS, and you have to have the private health cover to receive the E101. The private insurance company on behalf of the government fined me for taking out the insurance only after 3 months

Im not sure I understand what this statement means
Do you have skype or gtalk so we can chat. I can also call you tomorrow if you provide me a number
Cheers