Does Belgium tax foreign Death in Service payments?

ge32 Member

2POSTS

5 years ago

I work in Belgium but am employed by a British company. If I die while working with them, my family get 3x my salary as a lump sum.

In England this isn't taxed, and Belgium don't seem to have an equivalent type of payment.

It's paid by my employer to my family, so isn't considered inheritance as it is never part of my estate.

Does anyone have experience/knowledge with/of this?

I've spoken to my accountant but she isn't sure either.

Would my family have to declare it? Anyone know which code it would be best to put it under?

Thanks

See also

How to open a bank account in Belgium - Guide
What does packing service include? - 1 Reply
To buy a property in Belgium does it require a PR? - 6 Replies
How much does it cost a consultation with a dermatologist in Belgium? - 2 Replies
Healthcare in Belgium, how does it work? - 1 Reply
Service dog to Belgium from US - 14 Replies
How many months maximum does a person sublet an apartment in Belgium? - 6 Replies

Cynic UK/Netherlands Expert

8115POSTS

5 years ago

Hi and welcome to the Forum.

I know if it was the other way around (so, paid from a Belgian Company to a UK resident), it would be liable for tax.

michael dunhill24 Member

1POSTS

5 years ago

If this is a recognised Belgian pension plan there is no succession tax on payments to close family on death in service. If you wish to discuss this further you may call mean 0477 20 13 63.
Michael Dunhill (actuary)

ge32 Member

2POSTS

5 years ago

Hi Cynic thanks for the welcome - It wouldn't be taxed in the uk as they don't tax this type of payment

Hi Michael - thanks, it's unrelated to a pension

the problem is that belgium doesn't have a category for it so I'm worried that they'll stick it under income and charge it as that.

Cynic UK/Netherlands Expert

8115POSTS

5 years ago

ge32 wrote:
Hi Cynic thanks for the welcome - It wouldn't be taxed in the uk as they don't tax this type of payment

Hi Michael - thanks, it's unrelated to a pension the problem is that belgium doesn't have a category for it so I'm worried that they'll stick it under income and charge it as that.

Hi again.

That's not what I read. What it said was that if it was paid by a British registered company to a British tax resident, you would be correct. Anyway, I'm not a tax expert, my advice would be to direct your query to someone who is qualified to help you.

Hope this helps.

Cynic
Expat Team