A quick look at the fiscal and social measures in the federal budget agreement

Increased net wage

The special contributions to social security are withdrawn. In combination with an additional work bonus, this results in a 50-euro increase to the net wage for someone living alone. For a couple, the benefit comes to 150 euros.

Childcare

The tax deduction for childcare increases from 13 euros to 14 euros per day per child.  

Limits on concessions for professional athletes and expats

The government is putting caps on the tax and social security concessions that are currently in place for professional athletes. This means that highly paid athletes will have to pay higher social security contributions from now on. There is also a cap on the extent of business expenses that the agents can treat as tax deductible from their fees. 

Tax concessions for executives abroad and people with expat status are also becoming stricter. Currently, these concessions are often applied with no time limits.

Flight tax

The budget agreement introduces a flight tax for short-haul flights – any flight departing from Belgium whose destination is within 500 km.

Tobacco duties

Excise duty on traditional tobacco products is set to increase, starting in 2022. In 2024, a new category of excise duty will be introduced for other forms of tobacco product, such as the e-cigarette.

VAT for Airbnb operators

At present, a host renting a furnished room and offering additional services can take advantage of the regulation offering VAT exemption for small businesses, subject to certain conditions. However, from now on, Airbnb hosts will be excluded from this exemption. The government’s objective is to end the competitive advantage that the current regulation gives these hosts in comparison to the hotel sector.

Withholding advance payments on payroll tax

The budget agreement restructures the system for withholding advance payments on payroll tax. This system applies, for example, to payroll tax withheld from the salaries of some categories of shift workers and research workers.

First hires

The exemption from social security contributions for the first hired employee is capped at 4,000 euros per quarter. 

Amicable settlements no longer deductible

Amicable settlements that lead to criminal proceedings being dropped and regularisation taxes are no longer deductible as business expenses.

Multinationals and fraud

The budget agreement increases the capacity of the service responsible for auditing multinationals and compliance with transfer pricing legislation. Additional personnel are also being employed for the campaign against tax fraud.

Energy bill

The federal taxes on corporate energy bills are replaced by excise duty based on a ratchet system: in other words, the duties reduce when energy prices reach a specific threshold. The system is intended to create a buffer against frequent price fluctuations.

This is an overview based on the information available at present. Our experts will be keeping a close eye on the situation for you. We will send you an update as soon as more information is published about the details of the legislation.