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Setting up a Business in Belgium

• Romeinse steenweg 1022 • 1780 Wemmel• BRUSSELS BELGIUM• WWW.DRTPARTNERS.COM• TEL +32 2 456 89 10• FAX +32 2 456 89 11

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Setting up a Business in Belgium

1.?? PERMANENT 1.?? PERMANENT ESTABLISHMENT ??ESTABLISHMENT ??

2.VAT REPRESENTATIVE

DOING BUSINESSDOING BUSINESS

WITHOUTWITHOUT

COMMERCIAL PRESENCE IN COMMERCIAL PRESENCE IN

BELGIUM BELGIUM

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Setting up a Business in BelgiumCOMMERCIAL PRESENCE IN BELGIUM• 1. SELF EMPLOYED INDIVIDUAL(registration)

• 2. BRANCH OFFICE (registration+publication)

• 3. A BELGIAN COMPANY (public notary)

ALWAYS : commercial registration + special licence for some activities+…..

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Setting up a Business in Belgium

A BELGIAN COMPANY

Type of company : SA or SPRL

Difference : share capital,shareholders,directors….

+ = limited liability,managment fees,intrest>< branch

- = statutory auditor,……

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Setting up a Business in Belgium

• BRANCH OR COMPANY IN BELGIUMBRANCH OR COMPANY IN BELGIUM

• =BELGIAN BOOKKEEPING LAW=BELGIAN BOOKKEEPING LAW

IN FRENCH,DUTCH,GERMAN….IN FRENCH,DUTCH,GERMAN….

• =PUBLICATION ANNUAL ACCOUNTS=PUBLICATION ANNUAL ACCOUNTS

• =AUDIT=AUDIT

• =CONSOLIDATION=CONSOLIDATION

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Setting up a Business in Belgium• EMPLOYMENT(1)

Formalities (e.g. workpermit =non EU)

12 months+holiday+13th onth=13.92months• INDEXATION • Termination by employer = notice period!!

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Setting up a Business in Belgium

• EMPLOYMENT(2)

• Social security =

= 13,07% employee

= 35% employer

=NO BELGIAN SOC.SECURITY IN CASE OF SECONDMENT (=UK SOC SEC)

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Setting up a Business in Belgium

• TAXATION :INCOME TAXES INDIVIDUALSTAXATION :INCOME TAXES INDIVIDUALS

• 0% TO 50%0% TO 50% • +COMMUNE TAXES+COMMUNE TAXES

• INCENTIVE= EXPATRIATE STATUS !!INCENTIVE= EXPATRIATE STATUS !!

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Setting up a Business in Belgium

• TAXATION : CORPORATION TAXTAXATION : CORPORATION TAX

• Tax rate Tax rate = 25% - 33.99%= 25% - 33.99%

• Incentives:-dividend deductionIncentives:-dividend deduction

-investment deduction-investment deduction

-notional intrest deduction-notional intrest deduction

-accelerated depreciation-accelerated depreciation

-R&D incentive-R&D incentive

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Setting up a Business in Belgium

• V.A.TV.A.T

• RATES:RATES: 0% 6% 12% 21% 0% 6% 12% 21%• MONTHLY OR QUATERLY VAT RETURNSMONTHLY OR QUATERLY VAT RETURNS• +VAT LISTINGS+VAT LISTINGS• VAT DEDUCTIBLE=VAT DEDUCTIBLE=

50% CARS (100% VAN,TRUCK)50% CARS (100% VAN,TRUCK)

0% ALCOHOL,RESTAURANT,HOTEL0% ALCOHOL,RESTAURANT,HOTEL

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Setting up a Business in Belgium

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Setting up a Business in Belgium

• Quality of Quality of lifelife

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Setting up a Business in Belgium

• UK,France,GERMANY,NL • Housing

• Health care

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Setting up a Business in Belgium

surrealistic

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Setting up a Business in Belgium

• 4 REGIONAL GOVERNMENTS4 REGIONAL GOVERNMENTS

• 3 OFFICIAL LANGUAGES3 OFFICIAL LANGUAGES

• BRUSSELS–EC HQ (REPR 27 STATES)BRUSSELS–EC HQ (REPR 27 STATES)

• SMALL COUNTRY SMALL COUNTRY

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Setting up a Business in Belgium

• 1 year = 13.92 months

• Gross salary =+35% soc.security

• SECONDMENT=uk soc sec

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Setting up a Business in Belgium

• Timing

• Government = 3 days !!!!

• Reality = 4 to 6 weeks

• Company registration nr = essential

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Setting up a Business in Belgium

• 27 EU countries =27 different governments

• UK/B/D/FR/NL/IT....VAT-bookkeeping-taxes-social-deadlines- !!!!!!!!!

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Setting up a Business in Belgium

veerleslagmeulder@drtpartners.com willytimmermans@drtpartners.com