Does Belgium tax foreign Death in Service payments?

Last activity 14 May 2021 by Cynic

342 Views

4 replies

Post new topic

ge32Member14 May 2021 12:16:46

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

CynicUK / Netherlands Expert14 May 2021 13:25:56

7673

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 dunhill24Member14 May 2021 13:30:05

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)

ge32Member14 May 2021 19:25:18

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.

CynicUK / Netherlands Expert14 May 2021 19:38:06

7673

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

Articles to help you in your expat project in Belgium

Opening a bank account in Belgium
If you plan to live in Belgium long-term, opening a bank account is a good idea. Not only will you need a ...
Doing an internship in Belgium
Students usually have to do an internship to validate their academic training. What's the process of doing an ...
A guide to Brussels' neighbourhoods
A very safe and laid-back city to live and work in, Brussels has many different sides for expats and tourists to ...
Buying a car in Belgium
Some formalities apply when buying a vehicle in Belgium, both before and after the sale. Here's what to expect.
Buying property in Brussels
Compared with other European capitals, buying property in Brussels is very affordable. Consequently, it's ...
Buying a property in Belgium
The real estate in Belgium has the reputation of being relatively cheaper than its neighbors. We'll give you ...
Lifestyle in Belgium
Belgium is a diverse country that's very friendly with newcomers. What about its traditions, festivities, and ...
Driving in Belgium
If you're moving to Belgium, you might be interested in learning about getting a driver's license. Read on ...