As an employer, you may be faced with situations in which your employee works for you, temporarily or regularly, in a country other than his/her usual country of employment. BDO has created a Teleworking tool for this kind of situation.
An employee can be working from home for several days a week in a country other than his/her usual place of work or can be working exclusively for you from another country for a more extended consecutive period (e.g. several months). In such cases, the question arises of the applicable labour and social security law, and the impact on a corporate and personal income tax level.
Shortly after the start of the first COVID lockdown, governments in Belgium and in our neighbouring countries, inspired by international organisations, took several important decisions that impacted these cases. They concluded bilateral tax agreements and took social security decisions that ensured that in many situations the tax and social security contributions levied on the wages of frontier workers in cross-border cases with neighbouring countries could remain unchanged.
However, if you are still offering your employees the possibility of cross-border telework since these (temporary) COVID-19 measures have been lifted (or if you are envisaging this possibility), there are many elements you should examine carefully (beforehand) to avoid adverse (para)tax consequences for both the employee and the employer concerned.
Our Teleworking tool offers a first insight into the applicable Belgian rules and points of attention for cross-border teleworking for the following topics:
Throughout the tool, you will be provided with immediate feedback on specific topics. After completing the survey, you will also receive an overview of this feedback via email. Don’t hesitate to reach out to your trusted BDO advisor in case of questions.