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Belgium Issues Circular on Repeal of Old Expat Regime and a Transitional Regime — Orbitax Tax News & Alerts

The Belgian Ministry of Finance has published Circular 2022/C/9 of 21 January 2022, which repeals prior circulars for the old special tax regime for certain foreign executives (the old expat regime) and provides a transitional regime for foreign executives that were employed prior to 1 January 2022 and benefited from the old expat regime. The circulars for the old expat regime are repealed effective 1 January 2022 considering the new special tax regime for expats including executives and researchers that was introduced by the Program Law of 27 December 2021.

The transitional regime provided by Circular 2022/C/9 includes that foreign executives that were granted the benefits of the old regime may continue to benefit from the regime until 31 December 2023 as long as the relevant conditions of the old regime continue to be met. It is also provided that where the 6-month time limit to submit an application for the old regime has not yet expired on 31 December 2021, applications for the old regime may still be submitted in 2022 for the old regime. The 6-month limit is counted from the first day of the month after the employment/posting in Belgium begins. Circular 2022/C/9 also explains the option for taxpayers under the old expat regime to switch to the new expat regime. Requests for this option must be submitted by 31 July 2022.