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2.1ÌýÌýÌýÌý Withholding of income tax

Payment of salary and vacation pay

The general practice in Belgium is to pay salaries in 13.92 monthly instalments in each calendar year, as follows:

1. Ìý

   •ÌýÌýÌýÌý 12 ordinary monthly salary instalments

2. Ìý

   •ÌýÌýÌýÌý an end of calendar year bonus, traditionally paid at Christmas and equivalent to one month's salary (13th month)

3. Ìý

   •ÌýÌýÌýÌý a holiday payment of 0.92 of the monthly salary, paid when the holiday is taken

Note, however, that social security contributions are only due on 13.85 salary payments, as 0.07 of salary is exempt from the contributions calculation.

The contribution base can be inflated by holiday pay by 8% (socialsecurity.be).

A worked example regarding holiday pay can be found at the Office National des Vacances Annuelles.

Tax plan for the next ten years

A broad tax plan (Blauwdruk voor een bredere fiscale hervorming) has been agreed by the Belgian government. It outlines the government's aspirations for the tax system