Global Mobility Alert November 2014

As part of the 6th Belgian State Reform, the Belgian government has adopted the fiscal regionalization of certain tax benefits which will be split between the federal and regional government starting from January 1, 2014. Consequently, certain tax benefits (e.g. mortgage deductions, service vouchers, childcare expenses) will become a regional tax matter while other credits (e.g. lump sum personal tax credits and credits for dependent persons) will remain a federal matter.

Changes to non-resident tax payer regulation in Belgium

As a result thereof, the Belgian government drafted new rules to determine whether a Belgian non-resident tax payer will qualify for the federal and regional tax benefits and, if so, under which circumstances. Generally speaking, as from January 1, 2014, expats with a travel outside Belgium of more than 25% will suffer additional Belgian taxes.