Over and out for the special tax regime for foreign executives

On 31 December2023, the special tax regime for foreign executives will end. Don't lose sight of this, because foreign executives benefitting from the special tax regime in December 2023 will lose this benefit as from January 2024. It is very important to prepare for this change!

Context: new tax regimes since 2022

Two new tax systems have been in effect since 1 January 2022:

• the special tax regime for incoming taxpayers (BBIB);
• the special tax regime for incoming researchers (BBIO).

These regimes came into effect on 1 January 2022, making the old tax regime for foreign executives no longer valid as of that date.

Foreign executives had until 31 July 2022, to apply under certain conditions to make use of the BBIB or BBIO from 1 January 2022.

End of the transitional regime: 31 December 2023

As a transitional measure, executives for whom the old tax regime for foreign executives was allowed and who did not switch to the BBIB or BBIO may still apply the old tax regime until 31 December 2023.

After this date, the old tax regime no longer applies.

Be prepared: inquire about the tax and social consequences

The end of the special tax regime for foreign executives from 2024 has some tax and social consequences. Therefore, make sure to examine its impact on the wage calculation of affected employees.

To support you in this, our international legal consultants are glad to offer you expert advice. Contact them at GEconsulting@partena.be for a customized proposal!