Here are some important points for employers and employees to recognize when working remotely outside of Belgium.
Applicable social security
Belgian social security applies to employees who work on the Belgian territory. Employees who do not work in Belgium cannot contribute to the Belgian social security system.
An employee can only continue contributing to Belgian social security if they were already subject to Belgian social security and are subsequently posted to another country. And only if the other country is an EU member state or a country Belgium has a bilateral social security treaty with.
If the employee chooses to post from Belgium as a solution, they must apply for an A1 form/certificate of coverage with the Belgian social security authorities to demonstrate the continued coverage under Belgian social security rules during the temporary employment in another country.
For temporary employment in non-EU countries without a bilateral social security treaty with Belgium, the employer can decide that Belgian social security continues to apply. However, it must also be verified on a local level whether the employee is subject to local social security contributions.
Applicable tax regime
Employees are taxable on their income in the country where they are residents for tax purposes. If an employee works in another country for a longer time and/or has ties to that country, for example, their family lives there, or they have property there, they may be liable for taxable in that country. If an employee becomes taxable in another country and taxes have to be withheld by the employer on the salary, a payroll will have to be set up abroad.
Work accident insurance
Employees who work from home are covered by their employer’s work accident insurance. However, this does not automatically mean that the insurer covers work accidents in another country.
If the employee works in another country, it must be verified whether they have the right to reside and work in that country. An authorization to temporarily stay abroad in a certain country for a holiday is not the same as an authorization for long-term residence or work.