Grant of benefits by a third party instead of the Belgian employer:
No social security contributions due? Another update as part of a long saga
Previous newsletters covered the widely debated question of whether incentives (such as share-based plans) granted by a third party (for example a foreign-parent company of the employer) to Belgian employees qualify as remuneration subject to social security contributions.
The saga now continues. On 20 November 2023, the Labour Court of Appeal in Antwerp further clarified the concept that remuneration should be “chargeable to the employer” in order to be subject to social security contributions. According to the Labour Court of Appeal in Antwerp, a benefit or incentive cannot be considered to be chargeable to the employer if: (i) the benefit is granted, financed and ultimately paid for by a third party; (ii) the third party has and can prove its own reason for the grant (e.g. talent retention); and (iii) based on this separate “cause”, the grant cannot be seen as the consideration for the labour services performed
If these conditions are applicable and fulfilled when incentives are granted by a third party to an employee, these incentives will not be subject to Belgian social security contributions.
