Tax changes in 2024 and their impact on your company
Tax changes in 2024 and their impact on your company
March 2024 - Like every year, in 2024 you will have to consider new tax rules that may impact your company and employees. We highlight some notable measures:
· Tax limit amounts re-indexed: a whole series of federal tax caps were not indexed from income years 2020 through 2023. Starting in income year 2024, these amounts will again be indexed annually, although without catching up with previous years.
· More overtime tax exempt: in principle, employees can perform 130 tax-advantaged overtime hours per year. In 2024, this will become 180, for which a reduction in withholding tax will apply. Employees can also perform 120 relance overtime hours. No overtime or catch-up rest is paid for these overtime hours. They are exempt from social security contributions and taxes.
· End of transitional copyright regime: in 2023, the tax-favored copyright regime was reformed, reducing income eligibility. For those who dropped out due to the reform, there was still a transitional regime in 2023 (read: one more year of using the copyright regime, in a limited form). As of income year 2024, this will no longer be possible.
· Rent deduction only in exchange for dates: in the 2024 tax return, there will be a new return requirement for renters who use a property (partially) professionally and enter the rent (partially) as actual professional expenses. They will have to attach an attachment to their tax return that includes information about the landlord. If the tenant fails to comply with this obligation, they will no longer be able to contribute the rent for tax purposes.
· Stricter Cayman tax: starting this year, stricter rules will apply to this see-through tax. There will be an exit tax applied the moment the Belgian founder of a legal arrangement leaves Belgium permanently and is thus no longer a Belgian resident. Individualized funds will come into focus if an outsider also obtains a small participation in that private fund. The UBO register will be used more intensively to determine whether a construction falls under the Cayman tax.
· Higher bicycle allowance: based on a draft bill, the exempt bicycle allowance will be increased from 27 cents to a maximum of 35 cents per effectively pedalled kilometre. This increase applies to classic bikes, electric bikes and speed pedelecs alike. There will be a maximum amount of 2,500 euros per calendar year.
· Expansion of flexi-job system: employees working at least four-fifths and pensioners will be able to work as flexi-jobbers in 12 additional sectors since January 1, 2024. These include education and childcare. As of now, there is a limit on the amount a flexi-jobber can earn untaxed additional income (= €12,000 per year). Also, the patronage contribution increases from 25 to 28%.