Global Mobility: Inpatriates Regime – Social Security

​The new regime provides for the following adjustments:

1. the maximum percentage of tax-free allowances is increased from 30% to 35% of the remuneration;
2. the annual maximum cap of EUR 90,000.00 is abolished;
3. the minimum gross remuneration required to benefit from this regime is reduced from EUR 75,000 to EUR 70,000.

The Belgian social security authorities (RSZ/ONSS) have recently published an administrative instruction clarifying that the social security exemption under the inpatriates regime will not be aligned with the recent changes to the tax legislation.

This means:

• allowances of up to 30% of the gross remuneration remain exempt from social security contributions, whereas the percentage has been increased to 35% for tax purposes;
• the EUR 90,000 cap on the above-mentioned allowances remains in place for social security purposes, even though it has been abolished for tax purposes;
• the remuneration threshold to benefit from the social security exemption remains EUR 75,000 per year, even though this has been reduced to EUR 70,000 for tax purpose.

​This is not good news and will further complicate matters for employers. We will closely monitor developments and review the details.