What is the tax rate in Belgium?
Finding out about the tax rate in Belgium is absolutely essential if you’re considering working in the country. The tax system in Belgium can be broken down into company tax, income tax, payroll tax and sales tax, and learning about these various components gives you a good idea of how much you’ll be paying during your stay. Belgian taxes are generally variable, so the values included here are just averages. If you want to keep more of your earnings, you should consider using a contractor management company for your income tax in Belgium.
Corporate Tax Rate in Belgium
Corporate tax or company tax in Belgium is the amount taken from the earnings of corporations. If you own a corporation in Belgium, you can expect to pay 33.99% on average from your earnings. The specific rate you receive is dependent on a number of factors, such as the amount your company makes per annum.
Income Tax Rate in Belgium
Income tax in Belgium is charged to individuals, and depending on the company you’re working for you might have to calculate and submit returns yourself. Anybody freelancing or contracting in Belgium will probably have to handle their taxes this way. Because individual earnings can be so different, the income tax rates in Belgium vary from 25 to 55 percent according to your level of income. Additionally there are compulsory employee social security contributions of 13.07% which is made up of medical care (3.55%), invalidity benefits (1.15%), unemployment insurance (0.87%) and pension contribution (7.5%).
You can estimate your net income in Belgium using our Tax Calculator Belgium.
Payroll Tax Rate in Belgium
Payroll tax in Belgium is amongst the highest in the world. It’s paid by your employer as you earn and can be between 33-41% depending on the size of company and type of work. It is higher for blue collar workers than for white collar. Social security fees such as public health insurance, medical care, invalidity benefits, unemployment insurance, pension, family benefits, accident insurance, occupational disease insurance and other deductions are all included in this payment. There are no caps on employer social security contributions so it is purely dependent on your income in Belgium.
You can estimate the employer social contributions using our Payroll Tax Calculator Belgium
Sales Tax in Belgium
Sales tax in Belgium is applied to products you purchase using your already-taxed income. The rate of VAT in Belgium (value-added tax) is 21% (6% for essential and selected goods), depending on the type of product being purchased. There is nothing you can do about sales tax, but it’s good to know how much is added on to the cost of purchases.
How to Get the Best Tax Rates in Belgium
The amount you pay for tax in Belgium is heavily dependent on your income, but there are still many courses of action you can take if you have a good understanding of the system. Hiring an accountant in Belgium will get you a better rate, but can be pretty expensive in itself. Using a contractor management company is one of the easiest ways to keep more of your earnings. Contractors can use the company as their “permanent” employer but still continue taking contracts freely. The company collect your payments, handle your taxes and then send you the remainder. They’re experts in Belgium taxation, so they guarantee that you take home the biggest proportion of your earnings.
How We Help With Belgium Taxation
We’re partners with numerous contractor management companies in Belgium, and we know which ones specialise in the tax system in Belgium. If you have any questions, we’ll check with the experts to ensure you receive the best advice. We also regularly help contractors like oil and gas workers, business analysts, IT project managers, telecommunications workers, testers and software developers keep more of their earnings by using a contractor management company. We’ll suggest the best options to you, and can help you determine the best course of action. Our advice is completely free, and you’re under no obligation, so get in touch with us today!