The Belgian Ministry of Finance (Service Public Fédéral Finances) oversees income tax in Belgium. Non-residents of Belgium You collect income in Belgium (for instance, remuneration, pension, rent) and. Belgium has some of the highest income tax rates in Europe, with earnings over €41,060 taxed at 50%. That's actually down from 42.4% in 2014. Taxable income in Belgium is divided into four categories: earned income, property income, income from movable assets and miscellaneous income. The average Belgian worker paid 42% of his salary back to the government in income tax and social security last year. Non-residents are taxed just on any income they receive from Belgian income sources. Residents of Belgium are required to pay tax on their income worldwide. Belgium has issued the individual income tax brackets and rates for the 2020 tax year (2021 assessment year). Income tax in Belgium The income tax system in Belgium. Workers must pay income tax on money earned through employment in Belgium. The income tax calculator for Belgium allows you to select the number of payroll payments you receive in a year, this could be 12 (1 a month), 13 (with bonus), 14 (with additional payments) or more, you can choose the number of payroll payments in the year to produce an annual income tax … Rates vary between 25% and 50%. The Belgium tax system is based on federal and local taxes. American executives working temporarily in Belgium may qualify for a special regime for expat taxes that might be applicable to their Belgian income sources. Residents also pay additional municipal taxes at rates varying between 0% and 9% of the total payable income tax. Need some help? If you failed to mention any expenses in your tax declaration, you will automatically receive the legal fixed rate allowance. Therefore, you have to submit a 'non-resident income tax return'. Income Tax Base For Residents and Non-Residents of Belgium Residents of Belgium are subject to personal income tax on their total income, from all sources. An employee should not see more than a third of their income go to taxes, the president of Belgium’s Reformist Movement, MR, Georges-Louis Bouchez said. Dividends, interest and royalties are taxable in both countries, and usually the tax withheld in the country of source is limited to 10 or 15% when you present a certificate of residence. To obtain your net taxable professional income, professional expenses must be deducted. You are a resident in a foreign country, or; You are living in Belgium for a specific period of time (for instance, you work or study here). There are two possible methods: the legal fixed-rate or your actual expenses. 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