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Tax on Foreign Income
I have been working in Belgium for the local branch of an multinational for a few years, and will be transferred now to another branch, outside of the EU.
I will, however, be permitted to live in Belgium for a period of time - of my choosing - after the transfer to wrap up work and personal matters here. Note that I am an EU citizen as well as a citizen of the country to where I will be transferred.
Does anyone know how long one is permitted to reside and work (in this case, for a non-EU branch of a multinational) in Belgium before one needs to pay tax in Belgium on the foreign earned income? Will it matter that I had previously worked for the local branch of the same multinational and still live as a resident in Belgium in the interim?
Separately, can anyone recommend a tax advisor that is familiar with matters like this? My company has a well-known consultancy retained to provide guidance, but I want to ensure I have a second opinion.
You're thinking about this the wrong way round. The source of your income is irrelevant.
You are already resident here, and so long as you remain resident in Belgium (i.e. you are registered at the commune as being resident), you will be liable for tax on your income whether it comes from a Belgian or foreign company. You also need to consider social security contributions during this transition period.
When you eventually do leave, make sure you go to your commune and get a modele 8 form declaring you are leaving the country, and from the day you leave, you are no longer liable to Belgian taxes.
You can't get a better second opinion than direct from the tax people themselves, go and visit your local tax office and speak with them.
If the money you receive from abroad is salary, and you are registered for tax with the new country, then you are not liable for tax here. it would help if there is a double taxation agreement between belgiam and the new country
I'm afraid that Katie's advice above is not correct. So long as your are resident here, you are liable for income tax here, no matter what the source of your income.
Whether you would have to pay any Belgian taxes is another matter. If there is a double taxation agreement between the country that is withholding your taxes and Belgium, that would certainly makes it easier, but it doesn't mean you would have no Belgian taxes to pay.
I would also stress again, that you also need to consider social security, especially since the new country is not in the EU, and you may find that as you are no longer paying into a mutuelle, you may have no healthcare provision here in Belgium.
Dear Anon
I have been living in Belgium 12 years and during that time have earned my salary in another country. Every year I fill in the Belgian tax form and show the income earned abroad and the taxes paid. And every year I get a tax bill for 0 euro from Belgium.
Dear Katie,
While it may be the case for you, which is great, it will not necessarily be the case for everyone.
It will depend on the level of income, how and where it is being paid, and how and what is being deducted at source in the country where it is derived.
