Companies employing researchers in certain scientific fields who hold master’s degrees are exempt from paying 80% of the researcher’s personal income withholding tax. This greatly reduces the gross salary cost of these researchers, allowing the company to keep a significant amount of money.
Companies can enjoy a fiscal advantage for employees that are working in shifts, at night, or in a continuous regime. The employer is excused from paying part of the advance tax payment that he or she has deducted from the employee’s wages.
This exemption amounts to 22.8% of the total taxable wages, including the bonuses for working in shifts or night work. For continuous work this exemption amounts to 25% of the total taxable wages, including the bonuses.
There are also numerous advantages to employing expatriates in Flanders. For instance, no tax and no social security contributions are paid on expatriate allowances and reimbursement of expenses. These are deductible from corporate tax.
In addition, foreign executives themselves are given tax-free expatriate allowance as well as a reduction in cost of living expenses.
|Operational entity||EUR 11,250/year|
|HQ or R&D center||EUR 29,750/year|
These executives are also reimbursed for non-repetitive expenses on an unlimited basis, including installation costs, moving expenses and school fees. If they perform work outside of Belgium, these workdays are tax-free.