Professional withholding tax: SPF Finances website source 2021

What is the professional withholding tax?
This is a withholding tax payable by employers and companies on the remuneration they pay or allocate to their employees and company directors.
Withholding tax is also due on unemployment benefits, sickness insurance benefits, pensions, replacement income, etc.
The debtor of the withholding tax can withhold this withholding tax on the amounts he pays, and pays them to the State. Subsequently, this withholding tax is deducted from the tax statement of the recipient of the income.

Who must declare and pay the withholding tax?
Any debtor who pays or allocates in Belgium income which is subject to withholding tax must declare and pay this withholding tax.
 

Benefits of any kind

Benefits in kind: SPF Finances website source 2021

What is a benefit of any kind?
An advantage of any kind is an advantage that an employer or a company grants to a member of its staff or to one of its managers (company car, disposal of a building, loan of money at an advantageous rate, etc.).
This benefit of any kind is considered as professional income. The worker or company director who receives it will therefore have to pay tax on the amount corresponding to the value of the benefit of any kind.
Please note: benefits of any kind should not be confused with social benefits (for example: group benefits of low value, individual benefits that are not in the nature of remuneration, minor benefits or circumstantial gifts unrelated to the profession, etc.). These social benefits are immune to the beneficiary, which means that he will not be taxed on them.
The same goes for benefits explicitly exempted by the legislator such as meal vouchers, sport / culture vouchers and eco vouchers. These advantages are not taxed at the beneficiary's premises as long as they meet certain conditions.

​

In which document must the employer or the company mention the taxable benefit?
The taxable amount of the benefit in kind must be included by the employer or the company on the individual tax form 281.10 (employee) or 281.20 (company manager).
It is thus included in the taxable remuneration of the beneficiary.

​

Is the taxable benefit subject to withholding tax?
The taxable benefit is in fact subject to the rules of withholding tax.

​

Extracts of articles given for information, from external sources which may no longer be adequate.

ASCEND ACCOUNTANT declines any responsibility related to these articles.