International Contracts tax Liability - Help please

[Razzy]

Hi Guys

Need some advice on an offer i have received.

I have been approached by a UK Agent to work in Belgium for a minimum period of 1 year. I understand the contract will be under English law.

Am i liable for Belguim or UK taxes?

I am debating whether to use my UK Ltd co. or UK Umbrella or International Management company to handle local payroll and taxes.

Has anyone had any experience of this?

Any advice or pointers will be very helpful as i am confused.

Many thanks
Razzy

[cojak]

Lots of advice on the forums already.

Read this:

https://forums.contractoruk.com/acco...g-belgium.html

[stek]

Hi Guys

Need some advice on an offer i have received.

I have been approached by a UK Agent to work in Belgium for a minimum period of 1 year. I understand the contract will be under English law.

Am i liable for Belguim or UK taxes?

I am debating whether to use my UK Ltd co. or UK Umbrella or International Management company to handle local payroll and taxes.

Has anyone had any experience of this?

Any advice or pointers will be very helpful as i am confused.

Many thanks
Razzy

Belgian tax from day one personally and corporate irrespective of tax vehicle.

Don’t do it. Even socialist paradises such as Denmark don’t tax you anywhere near as much as Belgium, and Belgium is rubbish apart from the beer...

[rover and out]

No sure you are right

Belgian tax from day one personally and corporate irrespective of tax vehicle.

So how do you square your statement "Belgian tax from day one personally" with the situation that Posted workers can be taxed in their home country for the first six months .

[BR14]

Belgian tax from day one personally and corporate irrespective of tax vehicle.

Don’t do it. Even socialist paradises such as Denmark don’t tax you anywhere near as much as Belgium, and Belgium is rubbish apart from the beer...

I have to agree (reluctantly )
avoid Belgium whenever possible.
the beer is available in other countries too

[stek]

So how do you square your statement "Belgian tax from day one personally" with the situation that Posted workers can be taxed in their home country for the first six months .

Posted workers are for the likes of IBM etc, we are one-man companies, doesn't apply. You are not a posted worker, don't even consider clinging to that straw...

I've you don't believe me read the Belgium sticky, or even just take the consensus on this thread. You may get away with it, but you'll be looking over your shoulder for the rest of your life, read the German Finanzamt thread so see how vicious EU Tax regimes can be, HMRC are pussies compared.

Just keep this is in mind; TAX IS DUE WHERE THE WORK IS DONE. Perfectly sensible doctrine, EU has never harmonised tax, I would like to live in UK and pay Abu Dhabi tax (0%) his that going to happen? No ****n way. Same, you can't waltz into Belgium and exercise your treaty rights as an EU citizen as say I just want to pay tax from somewhere else where it's less but still live here. It's ludicrous, just think.

[rover and out]

And of course I disagree

Posted workers are for the likes of IBM etc, we are one-man companies, doesn't apply. You are not a posted worker, don't even consider clinging to that straw...

The advice that I have received over the last 23 years, 50 contracts and 11 countries is that it is valid for a one man company.

The law here does not distinguish between small and large companies. The status as "worker" is independent of the company, more to do with carrying out actual work.

So long as the company has a fixed term contract to provide services in another country and doesn't already have a branch there and needs to post someone to carry out the work, then it is valid.

I you would like to share an official opinion, from an Official EU tax office, I would be happy to take that on board.

I've you don't believe me read the Belgium sticky, or even just take the consensus on this thread. You may get away with it, but you'll be looking over your shoulder for the rest of your life, read the German Finanzamt thread so see how vicious EU Tax regimes can be, HMRC are pussies compared.

I have read the Belgium sticky, I have read it again today. It does not say anything that contradicts this - just advises that there may be easier ways of doing it. Ultimately it is basing the advice on long term presence in Belgium. And some of the advice is getting on for nearly 10 years old. Some of the Limosa stuff doesn't seem to match the current operating model.

Ultimately it is just advice. People can take it or not. As is the consensus on this thread, which in general is super risk adverse.

Agreed, about looking over your shoulder but you need to be doing that at all times when working in another country. Funny how that tap on the shoulder never comes unless you have been a really bad boy.

I have read the finanzamt thread. I didn't really need to read further than the following criteria: long term presence, management company, split earnings. It's a warning to everyone that professional advice always needs a Plan B.

Just keep this is in mind; TAX IS DUE WHERE THE WORK IS DONE. Perfectly sensible doctrine, EU has never harmonised tax, I would like to live in UK and pay Abu Dhabi tax (0%) his that going to happen? No ****n way. Same, you can't waltz into Belgium and exercise your treaty rights as an EU citizen as say I just want to pay tax from somewhere else where it's less but still live here. It's ludicrous, just think.

As always when dealing with tax the actual wording is crucial.

"tax is due where the work is done" should read "tax is assessed where the work is done". There may be additional laws and tax clauses that can be applied to reduce the liability.

" live in the UK and pay UAE tax"... not a fair pairing live vs pay. I could put up multiple conditions where you pay but live somewhere else. This all depends on your current and previous residence / domicile. The one that can be worked upon is "work somewhere, be taxed somewhere else".

Disagree with your "can't just waltz into Belgium"..and pay tax somewhere else...Well you can if you meet the well publicized criteria.

People shouldn't be scared of this foreign working at all, plenty of scope for the tax rules legitimately working to the benefit of the "worker"

[jamesbrown]

Belgium is rubbish apart from the beer...

...and the Vlaamse Frites.