Standard Income Tax Rates and Social Security

How much you can expect to pay for income tax in Belgium, including information on social security...

Employees and self-employed individuals pay progressive income tax. The top rate is approximately 53.5 percent (including communal tax) and starts at a salary level of €37,330 (2013 income and 2014 tax year figure).

In addition, social security must be paid on earned income. For employees, part of the social security is paid by the employer, and a smaller part by the employee. The employer's social security contribution amounts to approximately 35 percent, while the employee's social security amounts to 13.07 percent, both uncapped.

The social security tax for the self-employed is capped at approximately €15,905.32 per year (2013 figure).

Benefits in kind

Some benefits in kind are taxed favourably:

  • The free use of a company car
  • The free use of a computer
  • The free use of a mobile phone
  • Incentive stock options on employer's shares
  • Incentive stock options are either taxed at grant date on a lump sum basis, or when the option is exercised on the actual capital gain
  • The free use of a house
  • The free use of electricity and heating

The rules regarding the free personal use of a company car have changed as from the tax year 2012. Its benefit in kinds is now computed by taking into account the CO2 consumption of the car, its age and its market price.

Regarding the free use of a house or apartment, the rules have also changed as from the tax year 2012 by multiplying the benefit in kind almost by two and therefore is not so favourable than in the past.

Prepared by Marie-Lise Swinne, SA Tax Consult NV Avenue du Dirigeable-Luchtschiplaan 8, 1170 Watermael-Boitsfort, Brussels Tel: 02 678 17 82, Fax: 02 675 38 88, Copyright © SA Tax Consult NV - All Rights Reserved