Global PEO and Payroll in Belgium

Getting your business up and running in Belgium can be challenging, especially if you do not speak the native language. Establishing your own business entity in Belgium is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Belgium, you should be fully aware of the risks involved.

Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Belgium, without having to establish a legal business entity.

3 Options for Multi-location International Employment

Businesses establishing a global presence face the challenge of managing and scaling an employee base with no common borders or language. To successfully expand abroad, companies have several options for enabling hiring in international markets. 

There are six key things to consider when choosing an employment method for your company’s global expansion:

1. Budget and time frame
2. Tax implications
3. Compliance
4. Employment liability
5. IP protection
6. Asset acquisition.

The most commonly used ways are by doing the following: 

1. Overseas Permanent Establishment (a representative office, a branch, a subsidiary, and other foreign legal entity types )
2. Selecting independent contractors to handle tasks remotely.
3. Work with a global EOR (Employer of Record) and GEO (Global Professional Employer Organisation) Partner.

Benefits of Partnering with a Global Employer of Record (EOR) in Belgium

Navigating the Belgian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Belgian speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Belgium without concern for legal and compliance risks.

Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Belgium. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

International Global Payroll and Taxation in Belgium

Employment-related taxes in Belgium

Belgium taxes its residents on their worldwide income, irrespective of their nationality. Residents of Belgium are taxable on their worldwide income, while non-residents are only taxable on Belgian-source income.

Personal income tax (PIT) is calculated by determining the tax base and assessing the tax due on that base. Taxation is charged on a sliding scale to successive portions of net taxable income.

Foreign executives or specialists working temporarily in Belgium and qualifying for the non-resident special tax status do not have to include in their gross taxable income reimbursements for additional expenses incurred from their transfer to or employment in Belgium.

Payroll Cycle in Belgium

Remuneration must be paid according to the terms and conditions that have been agreed upon.  However, remuneration must be paid at least once every month, except that the parties may agree that some premiums are not paid monthly but after a longer period of time.

Blue-collar employees are entitled to an advance payment of their remuneration.  They receive their monthly salary in two parts that are paid in a maximum interval of 16 days. Employees are usually entitled to an end-of-year premium (also called thirteenth-month salary for white-collar employees). This premium is paid only once per year. Remuneration is paid in the manner that has been agreed upon by the parties. Most employment contracts stipulate that remuneration is paid by wire transfer and that it may, in exceptional cases, be paid from hand to hand.

13th salary in Belgium

Many employers pay a 13th-month‘bonus’ to their employees; a few even add a half of a 14th month’s pay to that, usually payable at the end of the year. In your first and last year of employment, the 13th-month bonus (and any holiday bonus related to vacation time) is paid pro-rata if you don’t work a full calendar year. Some employers offer a variable profit sharing or productivity bonus (participation aux benefices/aandeel in de winst or prime de productivité/produktiviteitspremie), depending on the performance of the company, branch, or department.

13th Month Bonus – Customary, 14th Month Bonus – Mandatory holiday bonus.

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How Global PEO and Payroll Services can Benefit Your Business in Belgium

Compensating your local and expat workforce in Belgium and closely adhering to Belgian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Belgian labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Belgium by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by Belgian laws. To get the latest updates on taxation in Belgium and in 190 countries worldwide, contact Acumen’s team of global employment experts.