Taxation in Belgium
You pay tax in Belgium on the income that you earn in Belgium. If you are in paid employment, your employer will deduct "withholding tax on professional income (bedrijfsvoorheffing)from your pay. If you work in Belgium and live in the Netherlands, you must file a tax return for non-residents/natural persons. The withholding tax on professional income already deducted from your income will be offset against the tax for non-residents due.
Tax return: pay extra or get a refund
Every year before 30 June, report how much you earned in Belgium in the previous year to the Belgian tax administration. They will then calculate how much tax you should have paid. If the amount they calculate is more than the amount your employer deducted, you will have to pay extra. If the amount is less, you will get a refund.
Tax compensation from the Netherlands
If you live in the Netherlands, you can get compensation for tax paid in Belgium. Belgian tax is usually higher than in the Netherlands. You can apply to the Dutch Tax Administration (Belastingdienst) for the compensation on 0165 522652. They will calculate how much tax you would have had to pay in the Netherlands on your Belgian income. The difference will be paid to you by the Dutch Tax Administration.
You pay tax on your gross pay. In addition, you pay a social security contribution called “RSZ-bijdrage” of 13.07% on your gross pay. See the table below for the rates.
Tax rates for 2013
|Taxable income||Minimum taxation||Total taxation|
|€ 0.00 up to 8,590.00||€ 0.00||+ 25%|
|€ 8,590.00 up to € 11,670.00||€ 1,472.00||+ 30% above € 8,590.00|
|€ 11,670.00 up to € 16,910.00||€ 3,206.00||+ 40% above € 11,670.00|
|€ 16,910.00 up to € 37,340.00||€ 5,302.00||+ 45% above € 16,910.00|
|€ 37,340.00 or more||€ 14,496.00||+ 50% above € 37,340.00|