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social security liability in Belgium

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    social security liability in Belgium

    Evening all,

    Just started a contract in Brussels, I was about to go through a certain management co. (one that pays you a certain amount each month and then pays you the rest when the contract finishes). My problem is that the amount that they want to pay me monthly is too high. I already have money saved up so any money that they paid me monthly would be subject to social security (which I understand is quite high in Belgium), ideally they would be paying me less and therefore reducing my soc. sec. liability here.

    The management co. don't want to pay me less monthly and then more at the end of the contract. Apart from any desire to help the Belgian social security fund, I can't understand why they won't go lower.

    Any takers

    Thanks

    #2
    Having just worked in Belgium for seven years under a similar system, I can't see what your problem is, nor what the management company's is. I think you may be aggressively agreeing with other without knowing it. I can't see what our savings have to do with it, at all.
    You don't say if you're to be a (frantic rabbit's ears) "employee" of the management company, under which jurisidiction the management company is or if you're to be a "travailleur indépendant" (self-employed) in which case you'll be liable for sécurité sociale yourself.

    I'd need to know the management company involved, the length of the contract and your daily rate to give you any useful advice.

    F in "Been there, seen it, done it" mode
    We must strike at the lies that have spread like disease through our minds

    Comment


      #3
      When I referred to my savings I was meaning that I don't need a large monthly salary which will expose me to paying soc. sec. in Belgium.

      I could in theory work for the three months and then collect everything at the end as I got a tidy pay-out from my spanish co. when I was a permie (spanish employment laws )

      I wasn't aware of the difference between employee of man. co. and travailleur indépendant. The man. co. is albany, it's a three month contract and I'm on 400 euros a day.

      Thanks in advance

      Anthony

      Comment


        #4
        If you're on a three month contract, the best thing would be to go in as an employee of the man co. I went in as an "employee" for 12 months, but this comes to an end after that time, and I was then self-employed.

        All this is assuming you wish to remain legit. Many don't bother.....

        How much do Albany want to pay you whilst in Belgium?
        We must strike at the lies that have spread like disease through our minds

        Comment


          #5
          Hi there,

          I wouldn't go in as an "employee" but as free-lance, that would make me liable for soc.sec. on what I would be paid in Belgium. As you know it's quite high here, so ideally min. monthly payments would suit me down to the ground.

          Last time I contracted here (the gold rush o' 99) I got stung afterwards for a high soc. sec. bill about a year later, I actually paid it, I know some that never bothered. But as I intend to pay it again, I would obviously like to limit my exposure as much as possible.

          Connexion I just spoke to this morning and they are also offering the same solution as Albany, less take home and they were talking about opening a luxembourg bank acc. They did give the impression they knew what they were talking about (or was I blinded by the Bull?) eg. only having to register after three month if I went the free-lance way (which I don't have to do since it's only a 3 month contract)

          At the mo, it looks like Albany are the better even though they charge more than connexion.

          your view?

          Anthony

          Comment


            #6
            they were talking about opening a luxembourg bank acc
            Yes Connexions will pay amounts into these bank accounts. You can then repatriate the money as and when.

            I do believe you need the advice of a lawyer here, but I think this is actually tax evasion.
            I'm alright Jack

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              #7
              Social security in Belgium is actually just over 20%. I'd have to dig out some paperwork to find the exact percentage, but let's assume it's that.

              It's 20% of your taxable income of three years previously. For the first three years, you pay a minimum contribution which is around €425 a quarter.
              Then, after your taxable income for a given year is worked out by the authorities, you receive a Social security demand for the difference between what you have paid, and what you should have paid. This can be quite hefty, but in turn reduces your taxable income in the year that you pay it, which in its turn reduces the Social security contributions for the third year following it. This sounds silly and complicated, and it is, but that's the way things are.

              For a three month contract, I'd probably just chance it and not bother.
              We must strike at the lies that have spread like disease through our minds

              Comment


                #8
                Well Alright!

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