Belgium

Belgium has one of the highest income tax rates in the OECD, with progressive rates of 25%, 40%, 45%, and 50% on income above EUR 46,440. Municipal surcharges of 0-9% of the national tax add to the burden. The combined effect creates a very high marginal tax rate on middle and upper incomes. Social security contributions for employees total 13.07% of gross salary. Employer contributions are approximately 25% of gross salary (after reductions), making total employment costs among the highest in Europe. A social security reduction exists for lower salaries. Belgium mandates various benefits including meal vouchers (cheques-repas), eco-vouchers, and a thirteenth-month salary. Many employers also provide company cars with fuel cards, which are a tax-efficient benefit and a distinctive feature of Belgian compensation packages. Tax deductions include pension savings (up to EUR 1,310 for 30% relief or EUR 990 for 25% relief), charitable giving, childcare expenses, and home loan interest. Capital gains on shares are generally exempt for individuals. VAT is 21%. The corporate tax rate is 25% (20% on the first EUR 100,000 for SMEs).