An employer will need to ensure that a proper payroll is maintained and that the different taxes are paid, including national social security contributions. These arrangements are closely related to legal and tax issues, so it is important to look for professional advice on this issue.
Belgian law requires Belgian individuals earning professional income, to make social security contributions.
Please note that for Belgian tax purposes, directors are generally regarded as selfemployed persons (and not as individuals receiving wages or salaries).
Many Belgian employers currently operate a company pension scheme. Contributions made under a contractual obligation to an approved employee pension fund are tax deductible up to certain limits. In the hands of the employee, under certain conditions the pension will only be taxed at a separate rate of 10% or 16,5% or 25%.
There are several ways of providing attractive remuneration packages, including the use of the following employee share schemes: