I'm offerred a position as a researcher in scientific institute in Belgium (not started yet), and discussing eligibility for the special expat tax status, i.e. "Fiscaal statuut van de buitenlandse kaderleden" as defined by here I believe.

As my potential employer does not have any idea of what I talk about, we both are trying to figure it out.

The problem I have is that both parties have some confusion about terminologies, such as between non-resident ("niet-inwoners" or "niet-residenten" ?) and non-inhabitant ("niet-rijksinwoners") and expat ("buitenlandse kaderleden").


From my understanding so far, the differences are,

1) Non-resident ("niet-inwoners") - One doesn't live or exist in Belgium.

2) Non-inhabitant ("niet-rijksinwoners") - One doesn't have economic activity in Belgium, a.k.a. neither pension contribution nor paying tax.

3) Expat ("buitenlandse kaderleden") - One doesn't have economic base in Belgium.

Please let me know if my definition is correct.


The confution comes when my employer found the following sentence in the link above,

"Mogen behoudens tegenbewijs niet worden beschouwd als niet-rijksinwoners, de natuurlijke personen die in het rijksregister van de natuurlijke personen zijn ingeschreven. In dat geval worden zij inderdaad geacht hun woonplaats of zetel van hun fortuin in België te hebben en zijn zij derhalve aan de personenbelasting onderworpen."

In other words, inhabitants ("rijksinwoners") are not considered as non-resident ("niet-inwoners").

My point of contact said that I would not get the special tax status because I will be inhabitants ("rijksinwoners") for Belgian social security number (an number unique to you, starting with your birthday, followed by 5 numbers: YYMMDD- 000-00).

As far as I know, "the special tax status for expats" is a special scheme that overrules the statement above, right?

Could anyone who has benefit from the scheme tell me if I can still have a Belgian social security number even with this tax scheme?

Or any web link (from Flanders Government) would be much appreciated.

Regards.

(Dutch translation above may not be perfect as I used Babel Fish in Altavista.com)

I've managed to pinpoint my questions.

I am a British national and am currently searching information about Special Tax Status for Expats in Belgium, i.e. "Bijzonder aanslagstelsel voor buitenlandse kaderleden (Nummer 3-20)" or "Fiscaal statuut van de buitenlandse kaderleden".

Regarding this tax scheme, I have three questions.

First, with the conditions below, I would like to know if I am eligible to qualify the scheme.

- Professional skills with PhD degree (can be supported by employer)
- Ownership of a house in Britain (it will be rented while abroad)
- Registered self-employment with British tax authority as a occasional private consultant.
- Initially temporary two-year contract with the Belgian employer
- Will eventually back to Britain

Second, I would like to clarify my understanding of the scheme as follows,

- Can stay in Belgium while treated as non-resident status (may not be 100%).
- Still pay income tax and contribution to the Belgian social security.
- Still be able to receive social security number (Het Identificatienummer van de Belgische sociale zekerheid; INSZ) as ordinary Belgian resident.
- Can apply the scheme anytime within 6 months of my starting date in the new job.

Lastly, could you please tell me the procedure of applying the scheme? Is there any form to fill in?

I really appreciate your help in advance, and look forward to hearing from you guys soon.

I can't recommend enough that you get an account with experience working on this... I have Ernst & Young doing mine but only because my company pays for it...

But from what you tell me you wouldn't meet all the requirements of expat status...

I am British
I am on expat tax status
I am a 'scientist' working for a pharmaceutical company and my skills/experience are rare if not impossible to find within Belgium
I have demonstrated that my financial interests lie outside of Belgium.
I still pay tax - but certain items are deductible and there are fixed benefits for diffrences in cost of living. If I work outside the country (business trips I don't pay tax for those days).

I can tell you you don't need evidence of a fixed term contract - my contract is permanent. I can also tell you that if I were to be made unemployed I'd be able to claim unemployment benefit here and if I retired a pension.

Thanks alot Ventho!

Regarding my questions above, a consultant in Ernst & Young replied me very useful answers as follow,

Relating to your questions below, I can confirm the following:
- You can stay in Belgium while having a non resident status for income tax in Belgium
- Under the expatriate tax regime you pay income taxes in Belgium. You will pay Belgian social security contributions if you are working in Belgium for a Belgian employer.
- You will receive a Belgian social security number when you pay Belgian social security
- The request for obtaining the expatriate tax regime needs to be filed within six months following the month of the start of your employment in Belgium.

As indicated before, the request needs to be filed jointly by your employer and yourself.

In general the Belgian company employing you needs to be member of an international group. However for scientific research centers and laborataries such obligation does not exist

Hope these help to anyone who considers the Special Tax Regime in Belgium.

Wish me luck.