Are these measures already official?
Not yet. This article discusses a draft law that still needs to go through several steps, including approval by parliament and publication in the Moniteur belge. Until these steps are completed, changes may still occur, and the measures are not yet legally binding. We will keep you updated on further developments through Lex4You.
A handy overview
This article covers the following measures:
- Overtime (tax-advantaged overtime and voluntary overtime)
- Tax-free amount
- Supplement on the tax-free amount for dependents
- Phasing out the marriage quotient
- Copyrights reopened for the IT sector
- Excessive benefits in kind penalised
- Doctoral fellows
- Other measures
Overtime
Tax-advantaged overtime: contingent of 180 hours becomes permanent
A tax-favourable regime applies to certain overtime hours, providing a statutory overtime supplement for both the employee (tax reduction) and the employer (tax exemption from withholding tax).
Initially, this was limited to 130 overtime hours per year per employee (with exceptions for construction and hospitality), but it has been temporarily increased to 180 hours several times. The latest extension lasts until December 31, 2025.
Read more “Tax reduction for overtime: the general principle”
The draft law aims to permanently establish the contingent at 180 overtime hours per year per employee starting from January 1, 2026.
The increase to 280 hours for employees and employers involved in road and railway works, and to 360 hours in the hospitality sector, will still apply.
Voluntary overtime
Starting April 1, 2026, the system of voluntary overtime will be expanded. Employees will be able to perform up to 360 voluntary overtime hours per year.
These 360 voluntary overtime hours will be distributed as follows:
- Maximum 240 (instead of 120) net overtime hours without overtime pay
- Maximum 120 overtime hours with an overtime supplement and tax-favourable regime
In the hospitality sector, the number of voluntary overtime hours will even increase to 450 hours.
For the period from January 1, 2026, to March 31, 2026, the current arrangement of 220 voluntary overtime hours will be extended.
Read more: “Expansion of voluntary overtime to 360 hours per year | Securex”
Tax-free amount
The tax-free amount will be gradually increased from 10,910 euros to 15,600 euros (indexed amounts) by the income year 2030. This means that a larger portion of the salary will no longer be taxed, resulting in a higher net salary.
This increase only applies to those with professional income.
Pensioners and beneficiaries will receive compensation through a lower tax reduction.
Supplement on the tax-free amount for dependents
The supplements on the tax-free amount for one or two dependents will be increased in four steps, so that the amount for the first and second child will be fully equalised starting from the income year 2029.
For the other supplements for three or more dependents, an indexation stop will be implemented starting from the income year 2026.
With this measure, the government aims to modernise the system of the tax-free amount and treat children more equally, reflecting the current reality of smaller, single-parent, and blended families.
Supplement on the tax-free amount for single parents
Starting from the assessment year 2030, the supplement on the tax-free amount for single parents will only be granted to truly single parents.
Currently, this supplement is granted to anyone with dependent children who is taxed alone, including cohabiting partners, while this supplement was originally intended as extra support for truly single parents.
Phasing out the marriage quotient
The marriage quotient will be gradually phased out starting from the assessment year 2027, aiming for a halving of the benefit after four years. This measure is also part of a modernisation of the tax system, as there are now more dual-income earners than families with only one breadwinner.
For pensioners, a phasing out scenario of twenty years is provided.
The above measures will affect the advance tax levy.
Copyrights reopened for the IT sector
The tax-favourable regime for copyrights will be reopened for writers of computer programs starting from the income year 2026, subject to strict conditions.
Since 2024, they could no longer rely on this measure following a ruling by the Constitutional Court.
Excessive benefits in kind penalised
Starting from the income year 2026, the total of forfaitarily estimated benefits in kind must not exceed 20% of the granted remuneration.
This includes benefits such as company cars, stock options, interest-free loans, and housing.
The assessment of this 20% rule will not be done at an individual level, but globally per category of employees on one hand and company managers on the other.
If this limit is exceeded, a separate taxation of 7.5% will be applied to the excessive part, which in certain cases may lead to the loss of the reduced rate of 20% in the corporate tax.
Doctoral fellows
The draft law also provides specific rules for doctoral scholarships. From the assessment year 2027, these will count as means of subsistence for dependents, and doctoral fellows will henceforth be treated fiscally as ‘single individuals’.
Due to these measures, doctoral fellows will often no longer be fiscally dependent and will enjoy fewer tax benefits.
Other measures
Finally, changes will also be made to the following tax regulations:
- Minimum remuneration for small companies: the required minimum remuneration for the reduced rate in corporate tax increases from 45,000 euros to 50,000 euros (indexed amount)
- Young athletes: the minimum age for the reduced rate on remuneration of young athletes will be lowered from 16 to 15 years starting from the income year 2026
- Prepayments: self-employed individuals will no longer be required to make prepayments starting from the income year 2026 (and thus will no longer risk a tax increase), but can receive a bonus. For company managers, the obligation remains, with an additional (fifth) period for prepayments
- Reduction of special social security contribution: the calculation of this contribution will now be done individually (no longer per family) and the rates will change so that the maximum contribution can be halved
- Increase in tax work bonus: the percentage will gradually increase, resulting in the gross minimum wage being fully net by the income year 2028
- Additional income for pensioners: pensioners who work (not through flexi-jobs) will be taxed at a flat rate of 33% on their salary starting from the income year 2027. This does not apply to self-employed individuals or company managers
- Living wage will be taxable: the living wage will be taxable as a replacement income starting from 2026, with a transitional arrangement for families with dependent children
- Tax reduction for pensions and unemployment benefits: the tax reduction for unemployment benefits will be significantly reduced starting from 2027 and will completely disappear by 2029. For pensions, the reduction will be phased out for higher incomes.
What does Securex do for you?
The above measures are not yet official. We are closely monitoring the situation and will keep you informed about further developments.
