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School fees and tax

Question

Hi,

I am considering asking my employers if they would pay the fees for my children at one of the international schools in Brussels. We have been here for 13 years and do not qualify for special ex-pat status. What would be the tax implications of having them paid for us.

Thanks in advance

shortof

None

Apr 21, 2016 09:13
Mikek1300gt

None, really? While the rest pay taxes on software supplied by the company? If you use it or not?

Apr 21, 2016 19:43
shortof

There are no tax perks for those who have fees paid for. 90% of children at the large international schools have fees paid for either by the EU institutions or by private companies or by national governments. There are no tax perks for the payers. No national subsidies from the Belgian state. They are ASBLS.

Apr 21, 2016 21:37
alittlerisky

essentially the tax perk would be that you dont have to pay the income tax on your salary before paying the fees. Simplistic example:

You pay fees:
Fees EUR5000 a year
You have to earn EUR10,000 before tax before having enough to pay fees (50% tax rate)
Cost to you EUR10,000

Company pays fees
Fees EUR5000 a year
Company pays EUR5000
Deducts EUR5000 from your salary
Cost to you: EUR5000 (ie EUR5000 better off)

simplistic example...but you get the idea. Basically your gross salary goes down, but your net goes up more or less.

But then I'm no tax accountant, there's probably legislation to prevent prevent this kind of thing...ask an accountant.

Apr 22, 2016 02:06
Mikek1300gt

EU institutions and national governments = tax payers.

Apr 22, 2016 03:48
Bruce M

Is tuition paid by an employer for an employee a tax deductible expense for the company?

May 13, 2016 20:39