Video Series on Alternative Remuneration in Belgium – Video 7 / 8 : Benefits in kind
In this video series on alternative methods of remuneration in Belgium we at Besox want to support you as employer to optimize your payroll.
Video 7 : Benefits in kind
As an employer in Belgium you can give a discount on your own products or services, provide a loan or intervene in the cost of housing of your employee.
In this video an overview of the most common benefits in kind:
- A price reduction on your goods or services, this is exempt from taxes and social security if the goods are for everyday use, is for personal use, you give a maximum reduction of 30% and the final price is not below the cost price.
This benefit is non-deductible.
- An interest-free loan or loan against reduced interest rate, the difference between the normal interest rate and the one the employer grants is taxable and is subject to social security.
This benefit is deductible.
- The free disposal of a house, a room, electricity and heating or a servant is regulated in the following way:
- You can grant your employee a house (or a part of it), the taxable advantage of this benefit in kind depends on the cadastral income, if the real estate is property of a natural person or a corporation and if the home is furnished.
This advantage is subject to social security based on the probable rental value.
- You can grant your employee a room with heating & electricity, the advantage can be charged for 0,74 € a day or 266,40 € a year
This advantage is subject to social security for 0,74 € a day.
- The benefit of an intervention in the cost of heating amounts to 900 € a year for employees and 1990 € a year for managers.
The benefit of an intervention in the cost of electricity amounts to 450 € a year for employees and 990 € a year for managers.
This advantage is subject to social security for the actual value.
- As a company you can provide a domestic servant, a driver or a gardener, this advantage is valued at 5950 € a year for each full-time employed worker.
These benefits are all deductible.
For more information contact your payroll advisor.