Cross-border employment and salary split: what you need to know
When a person is employed in two countries for two different employers, he or she will automatically be taxed in those two countries. The wage is then split in two and the tax rates applied are usually more interesting than when income is taxed in only one country. This may sound interesting. However, the administrative and legal implications of cross-border employment are not to be underestimated. Acerta can support you to examine and organize the salary split.
Conditions for a salary split
To be eligible for a salary split, you must comply with several conditions:
- The employee must have employers in different countries (in most cases it concerns employers of the same group)
- The employee carries out his professional activities in these different countries
Under certain conditions, also people who work for one employer in two countries can be eligible for a tax split.
Arranging a cross-border employment is no easy task. Our specialists can help you to set up a salary split correctly.
Benefits of cross border employment
A salary split often implies net tax benefit for the employee. He or she pays fewer taxes overall. As an employer, you can also benefit from a wage cost reduction with a salary split, depending on how the split is set-up.
Set the experts to work
Cross-border employment and setting up a salary split comes with a lot of extra administration. You are required to complete numerous documents and forms, set up a payroll in different countries, filing separate tax return, etc.
At Acerta, we are here to support you through the entire process of setting up a salary split, and to answer all your questions. Our experts have extensive knowledge about Belgian and international labour and tax law, and we work closely together with foreign partners to set up and manage your foreign payroll.
You can rely on Acerta for:
- Analysis of your situation
- Advice on salary split for your employees
- Simulation calculations
- Start-up and management of your payroll at home and abroad
Audit international employment
Deploying employees to a foreign country comes with its own set of supplementary administrative challenges. You not only have to comply with the legal terms of the foreign country, but also with administrative and payroll formalities. To be sure you meet all the necessary requirements for cross-border employment, you can count on Acerta to run an international audit on your organization.