The Royal Decree amending the wage withholding tax section of the Royal Decree implementing the Income Tax Code was published in today’s official gazette(*).

In addition to yearly wage withholding tax indexation, the Flemish lump-sum reduction (see our Headline of 27 September 2006) is also included in this legislation. A (monthly) withholding tax reduction of EUR 12,50 is granted to taxpayers who reside in the Flemish Region, provided that their yearly normal gross earned income amounts to at least EUR 6.940,00 and does not exceed EUR 24.810,00 in the case of employees (compared to a minimum of EUR 5.790,00 and a maximum of EUR 23.685,00 in the case of executive directors (“bedrijfsleiders/dirigeants d’entreprise”)).

The new wage withholding tax scale applies to income paid or granted from 1 January 2008.

For more ease in computing the wage withholding taxes, the tax authorities have also issued their “Key formula for computing wage withholding taxes on remuneration and pensions”. The document is available on their web site:
FR: http://news.hrservices.be?lk200712172
NL: http://news.hrservices.be?lk200712173

(*) http://news.hrservices.be?lk200712171