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Notification to debtors of remuneration, pensions and unemployment benefits with company supplement subject to payroll tax

Date:

Belgian Minister of Finance will submit a proposal to the King in order to switch to "progressive tax scales" for the determination of payroll taxes on remuneration, pensions and unemployment benefits with company supplement from 1 January 2023.  

With regard to remuneration, pensions or unemployment benefits with company supplement, the gross taxable amount is now rounded down (explicitly or in the scales) to the nearest multiple of EUR 15 in order to calculate payroll taxes which are due in accordance with No 2.2 to 2.5, 3.3 to 3.6, 4.1 to 4.4, 5.2 to 5.4, 5.14, 5.17, 5.19, 6.2.B. and 6.3.B. of Annex III to the Royal Decree implementing the Income Tax Code 92. This will no longer be the case with progressive tax scales. Scales I, II and III should be replaced by a calculation based on the current key formula, with the exception of the rule in this key formula that remuneration, pensions or unemployment benefits with company supplement are rounded down to the nearest multiple of EUR 15. As a consequence, an increase in the gross amount of remuneration, pensions or unemployment benefits with company supplement, as part of an indexation for example, will no longer result in a lower net amount.  

Debtors of remuneration, pensions and unemployment benefits with company supplement subject to payroll tax are requested to take this proposal into account.  

Any comments or questions regarding this notification can be sent to regl.dr1-ibisr.nat@minfin.fed.be.