Itecs Belgium

[nodric]

[QUOTE=Brussels Slumdog;825621]

If you have a degree and it is really short term go Freelance but, it if goes over a year get a Company formed (you can back date 6 months Freelance into the Company structure) or you will be crucified for Social Security and tax.

What is your advice if I usually work 20% in Belgium and 80% UK and rest of Europe. What happens if say I work june-november 2009 in Belgium Jan-June
2010 UK and July 2010-Nov 2010 Switzerland and back to Belgium in December 2010. As my wife is Belgian I assume that I am resident here.
I work wherever a good contract comes up and as I am not trilingual I receive
less offers in Belgium.

It comes down to your tax residency which, can be claimed as being your centre of economic interest. i.e. Where your house/family/main assets are.

You still have to watch the 183 days rule for being considered resident for tax but, if only 20% of your time is in Belgium then that will never apply. You should technically still tell LIMOSA but, most don't and most wouldn't even register or tell anyone as the work is average of less than 5 days a month so not a requirement (LIMOSA rules).

However, if your centre of economic interest is Belgium (wife etc) then this is where you should pay your taxes but, if you are 183 days say in the UK then you are tax resident there and all dues and demands should be declared there including the foreign source income earned in Belgium

All this of course assumes you are self employed. If you use a company structure then you get into sending employees overseas complexities. e.g. If you send an employee on an overseas mission that is temporary then no one tells anyone and they get paid in their home country etc. But, if that mission exceeds 183 days and/or in Belgium 5 days a month then, you have to pay their SS and Tax in the overseas country as they have become tax resident.

I am not a tax lawyer or accountant so seek professional advice from someone who is

Hope that helps a bit.

[surfer]

ITECs dividend solution

Hi:

After the ICC fiasco I signed up with ITECs. However something in the projections doesn't seem right.

Under their scheme you are paid a Belgian salary + COLA (if nonresident status) and are a Belgian employee.

The remainder of your income is invested in shares in an offshore company which pays monthly dividends (offshore). When we discussed the details of the scheme it was claimed that it was agreed with the BTA that the dividends would be taxed at 12%.

However, in the projections I see that the 12% is levied on the gross Belgian salary (including COLA).

I am on "chomage economique" at the moment (taking extra holidays because of the parlous state of work on the current project I am on). I can see a situation developing where there is no dividend but I am still taxed at 12% of my gross Belgian salary .

This seems wrong! wrong! wrong! I have asked the client to hold all payments to ITECs until it is sorted out.

ITECS initial response is that this (12% tax on gross Belgian) is what is agreed with the BTA. I asked for a proper payslip (not the "Income statement") that shows all the SS and tax payments - ITECS response is that following the recent PW takeover they are still working with a firm of Belgian accountants to get this stuff in place. I smell a rat but perhaps I am being too suspicious.

So my questions to the forum are:

Has has anyone else worked under this kind of agreement with ITECS before?

Did the "dividend tax" in fact go to the BTA?

[nodric]

Hi:

After the ICC fiasco I signed up with ITECs. However something in the projections doesn't seem right.

Under their scheme you are paid a Belgian salary + COLA (if nonresident status) and are a Belgian employee.

The remainder of your income is invested in shares in an offshore company which pays monthly dividends (offshore). When we discussed the details of the scheme it was claimed that it was agreed with the BTA that the dividends would be taxed at 12%.

However, in the projections I see that the 12% is levied on the gross Belgian salary (including COLA).

I am on "chomage economique" at the moment (taking extra holidays because of the parlous state of work on the current project I am on). I can see a situation developing where there is no dividend but I am still taxed at 12% of my gross Belgian salary .

This seems wrong! wrong! wrong! I have asked the client to hold all payments to ITECs until it is sorted out.

ITECS initial response is that this (12% tax on gross Belgian) is what is agreed with the BTA. I asked for a proper payslip (not the "Income statement") that shows all the SS and tax payments - ITECS response is that following the recent PW takeover they are still working with a firm of Belgian accountants to get this stuff in place. I smell a rat but perhaps I am being too suspicious.

So my questions to the forum are:

Has has anyone else worked under this kind of agreement with ITECS before?

Did the "dividend tax" in fact go to the BTA?

Run run run, as fast as you can, you can't catch me I'm the Belgian taxing man! (ok I tried to make it rhyme )

Any system/scheme/avoidance, relies on the other/dividend funds being in someone else's name otherwise, it is Worldwide income and must be declared wherever you pay tax, at least while you live in one of the main EU countries.

Remember in Belgium even if you are a 'non-resident' you still need to register with LIMOSA (Belgian Social Security by any other name) which, gets you a local tax return and firmly on the radar. You need to make sure that whatever you are doing will not catch you out down the line, assuming you remain in Belgium for any length of time. Of course if you intend to take the money and run then none of this is relevant But, the fact you asked sort of suggests this is not on your mind

If ITECs cannot give more explanatory explanation of how all this works in your 'individual' circumstances then walk away.

Avoid using any accountants linked to the ManCo as you need personal and impartial advice based on your specific circumstances.

[stormek]

Run run run, as fast as you can, you can't catch me I'm the Belgian taxing man! (ok I tried to make it rhyme )

Hi nodric! Can you PM me the accountant you've used? I've just registered to this forum and I can't send you any PM

Many thanks.

<mod note>New users are not given many rights on the forum due to past abuse and spam. I have upgraded your account though so you will now be able to use the PM system./mod note>

[fintz69]

Setting up a SPRL

Hi Nodric, Stormek, CyranoB

Could you PM the details of the accountants you've used?
I signed up for ITECS 2 months ago, but after seeing what is happening with Connexion I want to stay away from ManCos and go "solo"

I've just joined this forum and it seems that I don't have permissions to do PMs.

Thanks very much