Income tax - Salary and other taxable income from an employee's activity

The basic salary is the salary paid by your employer.

For taxes, you are considered an employee if you are in one of the following situations:

• You are bound to an employer by a contract of employment
• You are linked to an employer through subordination or close dependence (e.g., employment status)
• You have a special status that makes you considered an employee (e.g. a journalist with a professional card)

Specific tax rules apply to:

• Amounts collected by youth
• Apprentice Salary
• Salary of maternal assistants and family assistants

In addition to your salary, you can receive the exceptional purchasing power bonus.

This shall be replaced by the value-sharing premium since 1^to July 2022.

This premium is exempt from income tax within €3,000 by recipient by calendar year.

The exemption shall be increased to €6,000 where the employer has implemented a wage saving scheme (incentive or participation).

The exemption shall be increased to €6,000 in the following cases:

• Payment by a general interest organisation (e.g. association)
• Payment to disabled workers in a State

This exemption is granted for premiums paid until 31 December 2023.

The Internet income tax return is required if your primary residence is equipped with internet access and you are able to file your return online.

The 2022 income reporting period has ended.

The 2023 return for 2022 income will be in April 2023.

The overtime are to be reported.

Overtime is exempt from income tax up to €7,500 per year.

Overtime beyond this limit is subject to tax.

Exempt overtime is now pre-filled on your return. If you have more than one employer and exceed the limit, you must report the surplus with your wages.

The Internet income tax return is required if your primary residence is equipped with internet access and you are able to file your return online.

The 2022 income reporting period has ended.

The 2023 return for 2022 income will be in April 2023.

Furthermore, since 1^to January 2022, you may, with the agreement of your employer, waive all or part of RTT days that you acquired.

Compensation paid for these days is subject to the same social and tax regime as overtime.

You have the following benefits:

• Wage contribution waiver
• Exemption from income tax

The tax exemption shall be granted within €7,500 for the total days of RTT worked and overtime.

The device shall apply until 31 December 2025.

Tips collected in 2022 and 2023 by an employee are exempt from income tax, subject to conditions.

They are also exempt from social and social security contributions, subject to conditions.

In order to benefit from the exemption, the employee must not collect more than €2,164.91 net per month.

The salary amount is calculated without taking into account the following amounts:

• Overtime and Extra Time
• Perceived Tips

Tips can be provided in the following ways:

• Directly to employee
• By the employer if he centralises them (for example in case of payment by credit card)

Tips collected in 2022 must be reported in 2023 (in 2024 for tips collected in 2023).

Business expenses are deducted from wages on your tax return.

You can choose between the standard 10 % deduction and the deduction of actual costs.

The in-kind or cash benefits that your employer grants you are taxable.

Wage Savings is, in some cases, taxable and you have to report it.

This may be the case with certain income from the participation, for example.

The severance pay (illness, accident or maternity) are taxable.

Some are exempt, in whole or in part.

The social and family benefits are exempt from income tax.

However, some are limited to a ceiling.

You will have to declare the amount that exceeds this limit.

The termination benefits are taxable (resignation, dismissal, retirement, etc.).

However, some are exempt.