What is payroll withholding tax in Belgium?
Payroll withholding tax (précompte professionnel in French, bedrijfsvoorheffing in Dutch) is the advance on personal income tax that a Belgian employer deducts from each salary payment and pays to the Federal Public Service Finance. It is credited against the employee’s final tax once they file their annual return.
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The amount follows the rules in Annex III to the Royal Decree implementing the 1992 Income Tax Code. They start from taxable pay, which is gross pay after the employee’s social security contributions, and take account of the type of income, the employee’s residence and their family situation, such as a partner with little or no income and dependent children.
Annex III is updated at least once a year, and it can change more often when tax reforms take effect. A royal decree of 27 September 2026 brings parts of the July 2026 personal income tax reform into withholding for pay from 1 November 2026, including a tax-free amount of €11,550 a year and new reductions for dependants.
Filing and payment
The employer declares the tax on form 274 through Finprof, the FPS Finance online application, and pays it within 15 days after the end of the month in which the salaries were paid. Employers whose withholding tax for the previous year stayed below an indexed ceiling declare and pay within 15 days after the end of each quarter instead. Late filing or payment leads to late-payment interest and fines.
Partial exemptions from payment
For some types of work, the employer withholds the full tax from the employee but pays only part of it to the tax authorities and keeps the rest, which lowers its employment cost. These exemptions from payment cover, among others, overtime, shift and night work and scientific research. Each has its own conditions, and the employer files a separate 274 declaration to claim it.
Withholding tax when TopSource runs your payroll
When TopSource runs your payroll in Belgium, we calculate the withholding tax under the Annex III rules in force on each pay date, file the 274 declarations and pay on time, apply the partial exemptions you qualify for and issue each employee’s annual tax certificate.
Frequently asked questions
When is Belgian payroll withholding tax due?
Within 15 days after the end of the month in which the salaries were paid, with the 274 declaration in Finprof. Employers below an indexed annual ceiling can file and pay quarterly.
Is withholding tax the final income tax in Belgium?
No. It is an advance on the employee’s personal income tax. The final tax is set after the annual tax return, and the amount withheld is credited against it, so the employee may get a refund or owe more.
What changes in Belgian withholding tax from 1 November 2026?
A royal decree of 27 September 2026 applies parts of the personal income tax reform to pay from 1 November 2026, including a tax-free amount of €11,550 a year and new reductions for dependants.