Special tax regime for expats : additional reporting obligation
by Shauni Taildeman and Eline Demeyere
Starting from January 1, 2022, a new favorable tax regime for expatriates was introduced, namely the 'Special Tax Regime for Incoming Taxpayers and Incoming Researchers' (BBIB/BBIO). An important condition for obtaining and maintaining the status of an incoming taxpayer is receiving a gross salary of at least 75,000 euros annually. Fulfilling this condition is in principle assessed not only at the time of submitting the application to enjoy the BBIB but also throughout the entire application period of the status.
No nominative list anymore
In addition, the legal restrictions on the recurring expenses borne by the employer must be verified annually. The bearing of those expenses, on top of the gross salary, is considered as a cost proper to the employer (and thus tax free) up to an amount of 30% of the annual gross salary and provided that an absolute ceiling of 90,000 euros per year is not exceeded.
Initially, upon the enforcement of the regime, the employer was obligated to provide the tax authorities with a nominative list of employed expatriates falling under this regime on an annual basis, enabling the tax authorities to conduct necessary inspections. The method and format of communication would be determined by royal decree. However, due to the absence of a decree and with administrative simplification in mind, this annual list was replaced as of the tax year 2024 by an additional reporting obligation in box 29 on the annual tax form 281.10, respectively box 22 on the annual tax form 281.20.
Key points for employer
The status for Incoming taxpayer status will be terminated before the normal end date if the minimum remuneration threshold of more than €75,000 is no longer met during any calendar year. It is therefore very important to keep a close eye on the achievement of this threshold.
If you have questions about the new expat regime and/or the additional reporting obligation, be sure to contact one of our experts via the form below.
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Shauni Taildeman
Senior Advisor International shauni.taildeman@vdl.be
Eline Demeyere
Manager International eline.demeyere@vdl.be
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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