New rate of the employer’s social security contributions in Belgium : 25% !

1.- As from 1rst January 2018, the social security contribution rate payable by the employer has been reduced to 25 %.

It has to be noticed that this rate equaled 32,40% 1,5 year ago !

Furthermore, as a reminder, in Belgium an employer pays no social security contribution for his first worker.

2.- For the tax point of view, the general corporate tax has been reduced this year from 33% to 29%. In 2020, this general rate will be 25%.

Moreover, for SME’s, for the first taxable 100.000 € the new applicable corporate tax rate is 20% (as long as the SME pays at least 45.000 € as remuneration) !

3.- The goal of these social / tax reductions, as well as the insertion of more flexibility in the work conditions (see previous news), is clearly to make Belgium more competitive on the global market.

Feel free to contact should you have any questions !

Pierre Degouis – GGD Avocats – [email protected]  – www.gdd-avocats.be