New tax rate for casual labour in the catering trade

Belgian finance minister Koen Geens and state secretary John Crombez have introduced a bill to the parliamentary social affairs committee providing for the introduction of a new tax regime for occasional work carried out in the hotel and catering industry, writes Tax News' Ulrika Lomas. The bill forms part of the government's economic recovery strategy. The draft legislation provides that income derived from occasional work carried out in the industry is to be taxed separately in future. Consequently, remuneration earned from temporary work is to be subject to a flat rate tax of 33%, instead of a progressive income tax rate. The separate tariff of 33% will apply to remuneration paid out to an employee for services provided for up to a maximum period of 50 days within one year. However, if the tax bill shows that it would be more advantageous for the occasional worker to be taxed at a progressive rate of income tax, rather than the special rate of 33%, then this will happen automatically, to ensure that the occasional worker is not disadvantaged by the fixed rate. The new tax regime is to be introduced during the fourth quarter of 2013, together with provisions lowering social contributions for permanent contracts. The 33% special rate of tax will come into force in by November 1, 2013, at the very latest. This is to ensure that the fiscal support measures accorded to the industry apply before the tax cash register system is implemented from January 1, 2014. The tax cash register system is to be introduced in the hotel and catering industry on a voluntary basis initially.