by Biene Ongenaert and Febe Louage
The double tax treaty between Belgium and the Netherlands was signed on 21 June 2023. The negotiations had been underway for quite some time, and the new treaty is set to offer a solution for a number of bottlenecks in the current double tax treaty.
An adjusted regulation is included in the new double tax treaty for teachers and international athletes or artists working over the border. The treaty also provides a number of adjustments for director/majority shareholders emigrating to Belgium. Moreover, in accordance with the BEPS action plan, the new treaty also takes measures to avoid treaty abuse.
Unfortunately, the new treaty offers no solution for cross-border remote workers. Based on the current rules, the salary relating to homeworking days is taxable in the country of residence, giving rise to a salary split. Negotiations on this issue are to be continued. However, an agreement has been reached on social security for homeworking within international employment.
The new double treaty still needs to be ratified and signed by the different parliaments. The treaty will supposedly only take effect in 2025.
A more comprehensive update on the changes in the new double tax treaty between Belgium and the Netherlands will follow soon!
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