Dividends, interest and royalties are taxable in both countries, and usually the tax withheld in the country of source is limited to 10 or 15% when you present a certificate of residence. Rates vary between 25% and 50%. An employee should not see more than a third of their income go to taxes, the president of Belgium’s Reformist Movement, MR, Georges-Louis Bouchez said. Belgium has issued the individual income tax brackets and rates for the 2020 tax year (2021 assessment year). Workers must pay income tax on money earned through employment in Belgium. Income tax in Belgium The income tax system in Belgium. That's actually down from 42.4% in 2014. Therefore, you have to submit a 'non-resident income tax return'. Taxable income in Belgium is divided into four categories: earned income, property income, income from movable assets and miscellaneous income. You are a resident in a foreign country, or; You are living in Belgium for a specific period of time (for instance, you work or study here). The Belgian Ministry of Finance (Service Public Fédéral Finances) oversees income tax in Belgium. Non-residents of Belgium There are two possible methods: the legal fixed-rate or your actual expenses. The average Belgian worker paid 42% of his salary back to the government in income tax and social security last year. Residents also pay additional municipal taxes at rates varying between 0% and 9% of the total payable income tax. The income tax calculator for Belgium allows you to select the number of payroll payments you receive in a year, this could be 12 (1 a month), 13 (with bonus), 14 (with additional payments) or more, you can choose the number of payroll payments in the year to produce an annual income tax … The federal taxes are the income tax, the corporate tax, the social security tax and the value added tax and they are the ones bringing the biggest income to the state budget.Local taxes comprise property taxes, inheritance taxes and a few fees. Non-residents are taxed just on any income they receive from Belgian income sources. This means that the income is exempt, but it pushes your other income (the income that is liable to tax in Belgium) higher up in the progressive tax rates. Each category is strictly defined, both in terms of how the income is to be calculated and in terms of the expenses and other deductions that are allowed against gross income to arrive at net income. 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