Income tax - Taxable wages and other income from employment

The base salary is the remuneration paid by your employer.

For tax purposes, you are considered to be employed if you are in one of the following situations:

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

Special tax rules apply to:

• Amounts received by young people
• Apprentice's salary
• Wages of maternity and family assistants

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

This is replaced by the value-sharing premium since 1^er July 2022.

This premium is exempt from income tax up to €3,000 per beneficiary per calendar year.

The exemption shall be increased to €6,000 where the employer has introduced a wage savings scheme (profit-sharing or participation).

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

• Payment by a general interest body (e.g. association)
• Payment to disabled workers covered by an Esat

This exemption shall be granted for premiums paid until 31 december 2023.

Tax returns via Internet is required if your principal residence is equipped with internet access and you are able to file your return online.

For 2023, the tax return is complete.

The 2024 income tax return for 2023 will begin in April 2024.

The overtime are reportable.

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 in your return.

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

If you have several employers and exceed the ceiling, you must declare the surplus with your salaries.

Tax returns via Internet is required if your principal residence is equipped with internet access and you are able to file your return online.

For 2023, the tax return is complete.

The 2024 income tax return for 2023 will begin in April 2024.

Also, since the 1^er january 2022, you may, with the agreement of your employer, waive all or part of the RTT days which you have acquired.

The remuneration paid for these working days is subject to the same social and fiscal regime as overtime.

You get the following benefits:

• Exemption from payroll contributions
• Exemption from income tax

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

The device shall apply until 31 december 2025.

Tips received in 2022 and 2023 by an employee in contact with customers are exempt from income tax, subject to conditions.

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

To benefit from the exemption, the employee must not receive more than €2,212.94 net per month.

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

• Overtime and overtime
• Tips Collected

Tips can be paid in the following ways:

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

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

Business expenses are deducted from wages on your tax return.

You can choose between the flat-rate deduction of 10 % and the deduction of actual costs.

The benefits in kind or money that your employer grants to you are taxable.

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

That may be the case with some equity income, for example.

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

Some are fully or partially exempt.

The social and family benefits are exempt from income tax.

However, some are only subject to a ceiling.

You will have to report the amount that exceeds that limit.

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

However, some are exempt.