Droit Fiscalité belge

Introduction

The following steps should be taken in order for an Indian national to work in Belgium:

-          The granting of permission (work permit/professional card) from the relevant authorities;

-          The delivery of a visa from the Belgian consulate or embassy where the worker is located;

-          The registration by the local municipality in Belgium and the consecutive granting of a residence permit.

Employees

In principle (there are some exemptions), an Indian national has to get a work permit in order to work as an employee in Belgium.

The employer has to obtain an authorization to employ to that purpose prior to the commencement of the work in Belgium.

Such request for authorization to employ must be addressed to the relevant regional Employment Office by the employer or its proxy holder.

The Belgian legislator has set up various restrictions on the granting of authorization to employ and work permit, such as the prior search of an employee on the Belgian market and favouring nationals of countries with which Belgium as signed an agreement regarding manpower.

Such agreement does not exist so far between Belgium and India.

However, the Access to the Belina Labour market is facilitated for the categories of employees hereunder for which the above restrictions are not applicable:

-          Highly qualified employees

Highly qualified employees are those who earn a gross annual salary of 34.261 € (applicable for 2008).

Qualifications (i.e. University degrees), position and experience will be taken into account in order to determine whether or not the applicant is highly qualified.

-          Managerial employees

Managerial employees are those who earn a gross annual salary of 57.162 € (applicable for 2008) and occupy top positions within the company.

-          Others

Other employees such as specialized technicians bound by an employment agreement with an employer established abroad and who come to Belgium for 6 months maximum in order to install / activate / repair a  machine manufactured by their employer also benefit from this favourable regime.

Type B work permit is the most commonly issued and is valid for no longer than 12 months, renewable until the maximum employment duration is reached (up to 4 or 8 years depending on the occupation of the employee).

Once the application has been filed (with all required documents), the delivery of the work permit takes about 2 to 3 weeks.

Self-Employed

An Indian national carrying on a self-employed business activity on the Belgian territory must be holder of a professional card before starting a self-employed activity.

There are some exemptions.

The application for a professional card must be filed with the Belgian diplomatic or consular representative in the country of residence of the applicant (India) or, if the latter resides or is established in Belgium, the application can be filed with the local authorities in the municipality where the applicant resides.

If the application meets all requirements, the professional card will be delivered for a maximum duration of 5 years. It can be renewed. 

The issue of the professional card may last for a few months.

Visa

The Indian national willing to enter Belgium in order to carry on a professional activity must apply for a visa.

The type of visa and documents required will depend on the duration of the stay in Belgium: Visa C for a short stay (less than 3 months), Visa D for a long stay (more than 90 days within a given period of 6 months) and Family reunification Visa D for the spouse and children willing to join the Indian employee in Belgium.

Type D Visa is the most commonly issued for Indian workers in Belgium.

It can only be filed after the delivery of the work permit or the professional card and must be completed prior to the arrival in Belgium.

Official documents issued in India must be legalized.

Social Security

Employees occupied in Belgium are, in principle, covered by the Belgian social security system.

For assignment from India to Belgium, an Indian employee will not be subject to Belgian social security if (s)he does not work for a Belgian company or is not linked to an exploitation seat of the Indian employer in Belgium.

Tax

According to the Double Tax Treaty between India and Belgium, the remuneration derived by an Indian resident in respect of an employment exercised in Belgium shall be taxable only in India, if:

-          the recipient is present in Belgium for a period or periods not exceeding in the aggregate 183 days in the relevant “previous year” or “taxable period”, as the case may be;

-          the remuneration is paid by, or on behalf of an employer who is not a resident of Belgium; and

-          the remuneration is not deductible in computing the profits or income of a permanent establishment or a fixed base which the employer has in Belgium.

Should one of the three abovementioned conditions not be respected, the remuneration perceived by the Indian resident shall be taxable in Belgium. 

LIMOSA Registration

There is a general duty for foreign employers to notify to relevant Belgian authorities, any kind of occupation of foreign employees, self-employed or trainee in Belgium.

The LIMOSA registration is mandatory and applies to foreign employees / self-employed who are not liable to Belgian social security.

 There are some exemptions for specific short-term missions and duties.