Those engaged in international employment are taxable in the country in which they physically work. This means that those currently compelled to work from home due to the corona crisis are taxable in Belgium.
To avoid a change to the standard tax regime, Belgium has concluded an agreement with the Netherlands. This agreement stipulates that the standard tax regime additionally applies on those days on which an employee works from home as a result of the corona crisis. In other words, home working days are treated as if they had been performed in the usual country of work. The agreement provisionally applies for the period of 11 March to 31 May, but can be extended if necessary.
Measures pertaining to the taxability of compensation for temporary unemployment have also been decided, however, these have not yet been clarified.
Belgium is also in the process of negotiating solutions with other neighbouring countries. However, the normal rules will continue to apply as long as no agreement has been reached.
Do you work in an international context and have questions pertaining to working from home? Then please do not hesitate to contact your account manager or one of our specialists at firstname.lastname@example.org.
We base our advice on current legislation, interpretations and legal doctrine. This does not prevent the administration from being able to challenge it or to change existing interpretations.