The deadline to opt-in for the New Special Tax Regime is approaching
The new special tax regime for expats entered into force on the first of January 2022. The deadline for existing expats to opt-in on the new regime is the 30th of September, 2022. For expats who started their employment in 2022 or later, the deadline for application is three months after the start of the employment.
What are the most important things that you need to look after to sort out the application? We will give you a short summary.
Expats who were already employed in Belgium before 01/01/2022
The expats who already benefitted from the old regime have two options:
- opt for the new regime (if all conditions are met); or
- enjoy the old regime for another two years (the transition period until 31/12/2023). As of 1 January 2024, the Belgian tax rules for normal resident taxpayers will apply (i.e. worldwide income principle).
The opt-in procedure for the new regime is only possible if the expat has been active in Belgium for less than 5 years on January 1st 2022. In other words, all expatriates already working in Belgium before January 1st, 2017 cannot opt-in for this new regime.
The deadline for the opt-in is the 30th of September, 2022. There are two documents that have to be filled in: one for the employer and one for the employee. These documents have to be sent by e-mail (impatriates@minfin.fed.be) to the Belgian tax authorities in three separate pdf-documents:
- The application form of the employer in the original format (no scan or image);
- The application form of the employee, signed by the expat, in the original format (no scan or image);
- A document with the mandatory attachments.
The administration has three months to decide on the application. If the application is approved, the new regime will apply from January 1st, 2022. If the application is refused, the expat can still benefit from the old regime during the transition period.
Expats whose employment starts in 2022 or later
The application for the new regime for the first time has to be sent to the Belgian tax authorities in principle within three months after the start of the employment. However, an extension has been granted until the 30th September, 2022 for employments started between 01/01/2022 and 30/06/2022.
There is also an application form for the employer and one for the employee. The application forms and the attachments have to be sent in one document to the Belgian tax authorities. The documents can be submitted via e-mail (impatriates@minfin.fed.be) or via www.myminfin.be.
The administration has three months to decide on the application. If the application is approved, the new regime will apply from the start of the employment. If the application is refused, the expat will be taxed as a normal resident taxpayer of Belgium.
In a previous BofiFlash, we discussed the new special tax regime and its terms and conditions. You can read the full article here.
Article by http://www.bofidi.eu