What about the company contribution for foreign companies?
Foreign companies which are subject to the Belgian non-residents tax or to the Belgian company contribution must register with a social security fund and pay the annual company contribution.
Therefore, a foreign entity must meet two criteria:
- being a company;
- being subject to the non-residents tax or to the the company tax.
What is meant by being a company?
In its country of origin, the entity must have a legal form similar to the types of companies defined in the Code on Companies and Associations: private company, cooperative company, general partnership, limited partnership, European Society and European Cooperative Society.
Therefore, associations, foundations, political parties, health insurance funds, trade unions, federations, … do not have to register with a social security fund or pay the contribution.
What is meant by being subject to the non-residents tax?
Foreign companies as defined in Article 2, § 1, 5, c), ITC 92 which:
- have a Belgian establishment within the meaning of 229, § 1 to 3, ITC 92,
- own immovable property located in Belgium,
- have rights in rem in immovable property located in Belgium.
The non-residents tax liability decision based on the above-mentioned criteria falls within the exclusive competence of the FPS Finances.
How do I know if a foreign company must register with a social security fund and pay a company contribution?
Upon receipt of a formal notice sent by the NISSE
The NISSE informs the foreign company that it must register with a social security fund and pay the contribution. This is done after the NISSE has received the information from the FPS Finances confirming that the company was effectively subject to the Belgian non-residents tax or to the Belgian company contribution.
As the NISSE receives this information from the FPS Finances with a delay of several years, the obligation to register and to pay relates to years preceding the current year.
It is important to note that the non-residents tax liability does not imply that the company pays tax in Belgium but that it must file a tax return in Belgium.
Registration on a voluntary basis
If the entity considers that it meets the two above-mentioned criteria ('being a company' and 'being subject to the non-residents tax'), it must register with the social security fund of its choice from the start of the presumption.
The NISSE will validate the registration after checking whether the entity is indeed a company.
How can I register a foreign company with a social security fund?
The NISSE attaches to the formal notice a list of the social security funds with which the company can register. You can also get the list on request.
If there is no response within 60 days, the company is automatically registered with the National Fund (the NISSE's social security fund).
Can the company be exempt from paying the company contribution?
In some cases, your company can be (temporarily) exempt from paying the company contribution.
Inactive company
The company can be exempt from paying the annual contribution if it has not pursued any activity in Belgium for a full calendar year and if it can prove it by means of a tax certificate issued by the FPS Finances.
Temporary exemption for start-up companies
A start-up company can be temporarily exempt from paying the annual company contribution during the first 3 years of its existence (from the year of incorporation in its country of origin). You can apply for an exemption if:
- the company can be equated with a partnership (all companies except the public limited company and the foreign similar legal forms);
- the company is registered as a company subject to registration with the Crossroads Bank for Enterprises;
- the business manager(s) or company's director(s) and the majority of working partners who are not business managers or company's directors were not subject to the scheme for self-employed workers in Belgium for more than 12 quarters in the 40-quarter period preceding the date of incorporation of the company.
Questions?
Any questions about the company contribution?
By phone: +32 2 546 41 93
E-mail: vob-sov@rsvz-inasti.fgov.be