Introduction of a “catch-all” clause in the non-resident income tax

By 07/05/2013 December 1st, 2017 Uncategorized

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%.

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