{"type":"document","data":{"id":"99447d27-8641-4beb-882c-7004838a9254","localeString":"en-GB","publishDate":"2024-11-06T16:01:34.887+01:00","contentType":"onecms:editorialPage","hasMacro":false,"flexPageMetadata":{"afmBanner":false,"robotInstruction":{"noIndex":false,"noFollow":false},"description":"In 2024, the withholding tax scales are replaced by a new key formula. Discover the new regulations and their impact here."},"mainHeaderZone":{"componentType":"editorialHeader","coreHeader":{"title":"What are the withholding tax scales for 2024?","body":"The scales of the professional withholding tax that employers are obliged to deduct from their employees’ wages vary slightly each year. Since January 1, 2023, however, they have been abolished and replaced by a new key formula.\r\nHow is withholding tax calculated without scales? What impact does this have on your income or that of your clients? And what new rules apply? You can discover the answers to all these questions here."},"backLink":{"textLink":{"url":"/en/business/financing","text":"Financing: leasing & credit"}},"date":"2024-11-06","readingTime":5},"flexZone":{"flexComponents":[{"componentType":"paragraph","title":"Professional withholding tax: what is it exactly?","richBody":{"value":"<p>Professional withholding tax is<strong> the income tax advance payment, calculated as precisely as possible, due by natural persons - mainly salaried employees and business leaders</strong>. The employer (or the business leader’s company) who pays the salary is required to withhold this amount from each salary payment he or she makes and forward this sum to the tax authorities. The<strong> professional withholding tax is therefore deducted ‘at source’</strong>, so you do not get any unpleasant surprises when you receive your tax notice. </p><p><strong>The exact amount of the withholding tax you have to pay changes each year </strong>due to indexing, possible legislative and regulatory changes and more.</p><p>The rules for calculating withholding tax can be found in Appendix III of the Royal Decree implementing the Income Tax Code 1992 (‘Scales and rules applicable to the calculation of the withholding tax on income paid or allocated from 1 January 2024’).</p>"}},{"componentType":"highlight","title":"Do you still have questions about withholding tax?","richBody":{"value":"<p>As an accountant, tax adviser or auditor, you can count on <a href=\"https://www.ing.be/en/business/my-sector/accountis-professionals\">ING Accountis</a> for advice.</p>"}},{"componentType":"paragraph","richBody":{"value":"<p></p>"}},{"componentType":"paragraph","title":"Key formula replaces the withholding tax scales","richBody":{"value":"<p>The withholding tax on the monthly salaries and pensions of salaried employees and self-employed entrepreneurs is calculated based on the gross taxable amount received.</p><p>Professional withholding tax is based on the so-called ‘key’ formula. Thus, the amount to be used is calculated as follows:<br /> </p><ul><li>The monthly gross taxable amount (after deduction of social security contributions) is multiplied by 12 to obtain the annual gross taxable amount</li><li>a lump sum for business expenses is deducted from the annual gross taxable amount to obtain an annual net taxable amount</li><li>with this net taxable annual amount, the annual basic tax is determined using a specific scale (with adjustments according to the taxpayer’s family situation) and the application of any reductions (e.g. for family dependents)</li><li>the annual basic tax is finally divided by 12 to obtain a monthly professional withholding tax</li></ul><p>Each year, the tax authorities publish the rules for calculating withholding tax on their website and provide a calculation tool. For greater certainty, it is always best to consult a chartered accountant or tax advisor. </p><p>For example, for a gross monthly salary (after social security deductions) of 5,000 euros, without a family dependent or other reduction, the monthly professional withholding tax is 1,630.95 euros.</p>"}},{"componentType":"highlight","title":"Prepaying your taxes while self-employed?","richBody":{"value":"<p>With <a href=\"https://www.ing.be/en/business/financing/recurring-expenses-tax-prepayment-facility\">ING’s Tax Prepayment Facility</a>, we take care of everything for you.</p>"}}]}}}