The law of December 13th 2012 concerning fiscal and financial provisions (published in the Belgian Official Gazette of December 20th 2012) has reformed the Belgian non-resident income tax by the introduction of a “catch-all” clause.
All remunerations paid by a Belgian employer or a Belgian resident are taxable in the non-resident income tax, on the condition that this income would be taxable as well when being paid to a Belgian resident.
Furthermore, Belgium has to derive the competence to tax the aforementioned income from a double tax convention. When there is no such convention, Belgium will only have the power of taxation when the non- resident is not capable to prove that the income has already been taxed in the state of residence.
The income targeted by the “catch all” clause will be subjected to a final withholding tax of 33%, and this after the cost deduction of a lump sum rate of 50%.
Please contact us for further details.