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

Verified 20 juillet 2021 - Legal and Administrative Information Directorate (Prime Minister)

You must report the amounts related to your employee activity. The taxable salary includes the basic salary. Income called salary accessories (in-kind benefits, professional expenses, salary savings, etc.) are also included.

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. professional status)
  • You have a special status that means you are considered an employee (e.g. a journalist with a professional card)

Specific tax rules apply to:

  FYI : if you received medal of honour for labour and the gratuity is less than your monthly salary, this gratuity is not taxable.

In the context of the operations against Covid-19, the following amounts are exempt:

  • Military Allowances (Operation Resilience)
  • Exceptional bonus for public service employees (including public health institutions)
  • Premium paid to employees of private health institutions or of the social and medico-social sector between 1to June and 31 December 2020 (within €1,500)

The exceptional purchasing power premium shall be exempt from tax, subject to €1 000 (or €2,000 in some cases). It must be paid between 1to June 2021 and March 31, 2022.

Online Declaration

The 2019 income tax return is complete.

The 2022 2021 income tax return will begin in April 2022.

Paper Declaration

The 2019 income tax return is complete.

The 2022 2021 income tax return will begin in April 2022.

The overtime are to be reported. For 2020, they are exempt within €5 000 per year.

The annual limit is increased to €7,500 if overtime or overtime work was performed between March 16 and July 10, 2020 inclusive.

Exemption for overtime or overtime performed outside this period (1to January-15 March and 11 July-31 December) may not exceed the €5 000 per year and per employee.

Example :

In 2020, you worked overtime for a net taxable total of €7 000. You exceed the annual exemption limit €5 000.

1. You worked overtime between March 16 and July 10, 2020 for €3,500.

You are exempt up to €7 000 (€3,500 + €3,500).

2. You worked overtime between March 16 and July 10, 2020 for €1,500.

You are exempt up to €6,500 ( €€1,500+  €€5 000).

Exempt overtime is now pre-filled on your return. If you have multiple employers and exceed the limit, you must report the surplus with your salaries.

  Please note : If the amounts are not pre-filled, you must enter them (line Exempt Overtime).

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 must 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.

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