Tax Shift: Increase in purchasing power - Flat rate professional expenses

Auteur: Isabelle Caluwaerts
Leestijd: 2min
Publicatiedatum: 03/11/2015 - 13:00
Laatste update: 10/05/2019 - 09:22

The charges levied on labour in Belgium are high, not only for employers but for employees as well.
The government has therefore committed itself to adopting measures to increase the net income of employees and, in this way, enhance their purchasing power.
The first step was increasing flat rate professional expenses for employees in 2015 and 2016.
The government is now proposing to take a further step to reduce charges.

The government will therefore once again increase flat rate professional expenses for employees in 2016 and 2018.

By way of reminder, professional expenses are expenses that employees can deduct from the personal income tax levied on their taxable income.

They are expenses that have been incurred in order to earn or maintain professional income.

Deduction of these expenses can be done on the basis of actual expenses incurred or based on a flat rate fixed by the tax authorities.

The majority of employees opt for the flat rate deduction, which is the rate that the government has committed to increasing.

This means that the income band for which professional expenses were set at 30% will be widened for employee remuneration that is paid or awarded as from 1 January 2016 onwards.

Similarly, there will be only one percentage, i.e. 30%, to be used to calculate professional expenses for employee remuneration that is paid or awarded as from 1 January 2018 onwards.

These changes will be reflected in the PAYE tax scales.

This measure is still in the draft phase and as such could still be modified.

FR/NL

Auteur: Isabelle Caluwaerts

03/11/2015

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