The Belgian Senate has approved the bill submitted by the Belgian Finance Minister that is designed to reduce the tax burden on the country’s hotel and catering industry (Horeca).
The bill introduces a new fiscal and social regime for occasional work carried out in the Horeca sector. Much of the work in this sector is seasonal in nature and it is therefore normal for businesses to use casual and occasional labor during peak times in the season.
The draft legislation provides that income derived from occasional work is to be taxed separately at a rate of 33 percent. The separate tariff of 33 percent is to apply to remuneration paid out to an occasional member of staff for services provided, up to a maximum period of 50 days a year.
If the employee’s tax bill shows that it would be more advantageous to be taxed at the progressive rate of income tax, rather than the special rate, then this will happen automatically.
Consequently, the Government intends to lower social contributions for fixed contracts during the fourth quarter of 2013.
