New tax regime for incoming taxpayers and researchers

The programme law, published on 31 December, introduces, as from 1 January 2022, a new legal framework for incoming taxpayers in Belgium: on the one hand, the special tax regime for incoming taxpayers (STRI) and, on the other hand, the special tax regime for incoming researchers (STRIR). This law replaces the administrative circular of 8 August 1983.

Who can benefit from the new incoming taxpayers regime and for how long?

The new tax regime for incoming taxpayers is based on two main schemes: the STRI and the STRIR.

To access the STRI and the STRIR, the applicants must, during the 60 months preceding their entry into service in Belgium:

• Not have been subject to Belgian personal/non-resident tax on professional income; and
• Not have resided at a distance of less than 150 km from the Belgian border.

In addition, for the STRI, the applicant must receive a gross annual remuneration of at least EUR 75,000 for work performed in Belgium, before deduction of personal social security contributions, and including the fixed salary, benefits of any kind, holiday pay, the thirteenth month and any bonuses. However, this remuneration does not include termination payments, compensation for a temporary loss of remuneration, social benefits – such as meal vouchers and eco-cheques in particular – exempted on the basis of Article 38 of the CIR, reimbursements of recurring expenses that result directly from the assignment or employment in Belgium (granted within the framework of the STRI and which are added to the minimum gross annual remuneration of EUR 75,000), nor other reimbursements of the employer’s own expenses.

For the STRIR, however, there is no salary requirement. The applicant must, instead, hold a qualifying degree or have at least 10 years of relevant professional experience.

The STRI is open to executive directors. The STRIR is not.

The STRI/STRIR scheme can be used for a maximum of 5 years, with a possible extension of 3 years.

It should be noted that under the two new regimes, no nationality condition is required. A Belgian worker who has left Belgium for more than 60 months will therefore be able to benefit from the regime if the other conditions are met.

Furthermore, the employer or company where the incoming taxpayers or researchers work does not have to be part of an international group. Both new schemes can be implemented in Belgian resident companies, Belgian establishments of a foreign company or non-profit organisations (ASBLs and AISBLs) as defined in Article 1:6, §2 of the Code of Companies and Associations.

Benefits

The main benefits of the STRI/STRIR are threefold:

• An allowance of up to 30% of the gross annual remuneration can be granted in the form of employer’s own expenses without exceeding a maximum of EUR 90,000 per year. No supporting documents are required to prove this amount. This part of the gross pay is not taken into account for the calculation of the minimum remuneration requirement;
• In addition, the employer may, within certain limits, contribute to the costs of the expatriate’s relocation, the costs of arranging the residence in Belgium and the school fees of the children of the expatriate or his/her partner; and
• The person concerned may benefit from double taxation agreements, since he/she is an inhabitant of the Kingdom if the residency conditions are met.

Procedure

In order to benefit from the new STRI or STRIR, the employer (or the company) must submit an electronic application to the tax administration within three months following the start of the taxpayer’s employment in Belgium.

If the incoming taxpayer or researcher does not establish his or her tax residence in Belgium, a certificate certifying that he or she is subject to income tax as a tax resident in another State must be attached to the application.

The Administration has a three-month period from the receipt of the application to decide and notify its decision in writing to the taxpayer and the employer.

In the event of a positive decision, the special regime applies to the remuneration received by the incoming taxpayer or researcher since entry into service in Belgium.

This regime applies, in principle, for a maximum period of 5 years. For incoming taxpayers, this implies that the condition of a minimum remuneration of EUR 75,000 is still met.

From a Belgian social security perspective

The STRI and STRIR are silent on the social security treatment to be applied to reimbursements of expenses specific to the employer (or the company) granted under the two new schemes. The Minister of Finance states in the explanatory memorandum to the programme law that “social security does not fall within his competence and that he cannot take a position on this matter”.

The position of the NSSO on the Belgian social security treatment of the maximum 30% lump sum qualified as employer’s own expenses from a tax point of view is therefore keenly awaited by the parties involved.

Temporary measures

As from 1 January 2022, it will only be possible to join the new system. Those who already have the “old” status on that date may continue to benefit from that system for a further two years (as long as the conditions are met) or apply to join the STRI/STRIR by 31 July 2022 – under certain conditions.

Action point

As from 1 January 2022, employers will have to take into account the new regime for their new recruitments. Employees or directors currently in Belgium who are covered by the old scheme can, under certain conditions, switch to the new scheme or remain under the old scheme for another two years. If a choice is possible between the old regime, which will expire on 31 December 2023, and the new regime for the remaining 5 or 8 years already spent in Belgium, this choice will have to be made bearing in mind that the fiction of Belgian tax non-residence under the old regime no longer exists under the new regime and that the incoming taxpayers, if they meet the conditions of Belgian tax residence, are taxable on their worldwide income.