29 Oct 2024
As per records in 2023 Belgium ranked among the ten nations with the highest income tax which ranges up to 50%. This issue becomes a challenge for Senegalese migrants for making a money transfer from Belgium to Senegal who are living and working in Belgium since the country has a complicated tax structure. It becomes important to understand how these taxes are incurred, on your income, remittances, and financial status.
This blog provides the reader with an overview of the structure and most important elements of the Belgian tax system, as relevant to Senegalese migrants in particular, to minimize the risk of falling foul of the system and maximize the benefits of the system for the migrant.
Belgian taxes are intended to finance a broad social security scheme for healthcare insurance, pension, and unemployment. However, it is also quite complicated, with several taxes that may influence the residents and non-residents in different ways.
As a Senegalese migrant in Belgium, you are subject to several types of taxes:
About the tax regime, Belgium has real progressivity, that is, it takes the lion’s share, and the more so the larger the income. Your income is taxed at a standard rate of 25% to 50% depending on the income level.
The VAT is a type or form of consumption tax that could be levied on products and services. The current normal VAT rate is 21% however, article 310 of the Bill passed in Dec. 2013 provides for two lower rates of 6% and 12% to be applied to items deemed necessary such as foods and medicine.
Social security is mandatory in Belgium for secure online money transfer from Belgium to Senegal and if you are employed you are required to pay social security in the country either through your payroll or by self contribution. These contributions are employed to meet health needs and provide pensions and other social requirements.
If you are self-employed, you should know which taxes apply to your income and the other regular expenses to be met during the year so that you do not make surprises when you are filing your income tax returns.
Tax residency is an important consideration in your taxation position. The first is when an individual stays in Belgium for more than 183 days in a tax year, or in other words, a tax resident – the center of one’s economic interest is in the country.
Tax residents are taxed on their income irrespective of the source of the income; hence, they declare their income as being from Belgium or any other country.
Belgium taxes only the income arising from Belgium sources such as salary income, income from immovable property, and some of the income from other forms of investments.
It is imperative to determine when one becomes a tax resident to figure out which portion of one’s income is governed by the Belgium tax codes to save more and send money to Senegal from Belgium.
Belgium's progressive tax rates range from 25% to 50%, depending on your earnings:
Knowledge of these brackets enables one to predetermine how much tax is required for annual payments.
It is important to determine your marginal tax rate ahead of time when organizing both income and savings.
Both Belgium and Senegal have signed DTAs. This treaty prevents Senegalese migrants from being charged on the same income with two taxes: one from the Belgian government and the other from the Senegalese government. This agreement is quite a relief, especially for people who send cash back to their families.
Don’t get taxed twice; use the DTA if you are not sure about the different details, consult a tax expert.
Taxes are filed in Belgium through a legal obligation. Failure to adhere to deadlines and filing wrong information leads to fines and penalties.
You should also mark other important events on the calendar, which reminds you to file your tax return.
Belgium offers several deductions that can reduce your tax burden, including:
Includes costs relating to travel, courses, tools of trades, and chapters, among others.
If you have dependents, such as kids, you get other family allowances that could reduce your taxes and save more money to send money from Belgium to Senegal back home.
Taxpayers with homes can deduct expenses incurred in the refinancing of homes, expenses in energy-efficient home renovation, and certain taxes on properties.
It befits taxpayers to retain all documentation of all allowable deductions for the year in a bid to maximize allowable allowances.
The tax authority of Belgium is Minfin, an online filing portal that is provided for use by residents of the country. This platform facilitates tax submissions where you can file your returns, pay your taxes, and monitor your filings all within this platform.
You can easily file your Minfin taxes online, here which also saves time as well as guarantees the accuracy of your tax remittance.
Belgium fines and interest are charged on the taxes that are filed late or incorrectly. Fines vary from 10% to 200% of the tax due and depend on the gross mistake or late filing of the return.
Minimize or even avoid incurring penalties by filing your tax returns correctly and on time.
The HSS also provides various measures for people who pay their taxes in Belgium. Senegalese migrants can benefit from these provisions if only they comply with the tax laws. The advantage for the receiver is the Belgian Social Security System is to be able to send money to Senegal from Belgium as much as possible. As a tax resident, you have access to:
The healthcare center in Belgium is reputed and has provisions for many health services.
If you find yourself unemployed, then you can apply for unemployment welfare.
Another advantage is that once you work in Belgium for some time, say 10, 15, or more years, you are lined up for a pension.
Some of these benefits are available through social security, so be sure you are registered with this program in Belgium.
In case you transfer money to Senegal, it will be useful to be aware of how such money transfer is considered under the legislation of Belgium. Most of the time foreign remittances to Senegal are not subject to taxation but any income, which might be earned from such foreign investments, may be taxed.
Maintain a record of all your remittances and seek the advice of a tax consultant to know the rules governing tax.
Such a money transfer company as ACE Money Transfer helps those Senegalese immigrants in Belgium who would like to send money back to their native country. In addition to very reasonable charges, ACE allows a greater proportion of the money you work so hard to earn to get to the loved ones you wish to provide for.
ACE Money Transfer is a solution for cheap and safe transfers from Belgium to Senegal.
As seen before, Belgium has a relatively touchy-regarding taxation where Senegalese migrants can get relief from some loss and other social securities as well can take benefit from the DTA to send money to Senegal online from Belgium. It is essential to maintain compliance with Belgian codes for the taxation system to avoid the worst that the legal requirements of the country have to offer and to take advantage of the best that Belgium has to offer in terms of tax legislation.
Seize your financial freedom and security right now! Utilize ACE Money Transfer as a tool to handle your remittances and reach the appropriate tax consultant. Let ACE assist you in managing the challenges of living in a foreign country and moving your money at the same time.
The Senegalese migrants are expected to produce the income tax, the value-added tax, and the social security in Belgium.
Belgium follows a progressive tax structure, which means it taxes its income earners based on their earnings, with the tax rate moving from 25% to 50%.
This agreement will also prevent the double taxation of the income of Senegalese migrants.
Yes, they can deduct the expenses for work-related adjustment costs, family tax claims, and housing costs.
They are not subjected to taxes but it is advisable to seek the services of a tax consultant to regard the laws of the country.
