L'impôt des non-résidents: analyse de la situation fiscale des cadres belges et étrangers en Belgique.

Abstract

Taxation is a vast and evolving field in which it is necessary to keep a closed eye on the latest standards and legislation. Belgium is a country with a high tax burden, which does not always make it a very attractive territory. Therefore, the tax authorities put in place certain tax incentives to attract investors, international companies, and highly qualified personnel. In 1983, a circular was issued to encourage the arrival of qualified personnel by implementing a special tax regime for foreign executives and specialists. This regime will introduce a set of advantages for these executives so that they find their professional presence on the Belgian territory quite attractive. They will be able to reduce their tax base by a system of non-taxable allowances targeting the differences related to the costs of living, housing and the difference in taxation compared to their country of origin. Another important advantage is the application of a travel exclusion which will allow this executive to not be taxed in Belgium on his business trips abroad directly related to his activity and proven by relevant evidences. Moreover, this will be a win-win situation for both parties as the employer will see its costs related to an employee reduced by the application of the regime. The major problem with this kind of regime is that it is entirely based on the principle of a circular that has not evolved in the context of nowaday's life and tax law. There is a legal vagueness on certain notions that leaves too much to interpretation by the tax authorities. In this work, we were able to explore through a practical case the real impact that this regime could have on foreign executives who choose to come and work temporarily in our country. In the end, the result is that they gain a substantial advantage which could be described as discriminatory towards Belgian executives who cannot enjoy such benefits even though they work in their own country. In the end, this special regime is a boon in a context of internationalization, but it is considered too obsolete today. In the future, it would be wise to review the regime in depth and to adapt it to the economic and fiscal context of our society today.