Expand your business in the U.S. Brussels, the 29th of November 2017 Hugues THIBAUT Group S – Payroll Provider

Employees in the U.S. American payroll Belgian payroll

Employees in the U.S. Social security system applicable? Employers’ social contributions? Employees’social contributions? Tax system applicable? Income tax? Advance tax payment deducted?

Principles Social security agreement: social security of the country where the employee’s work is carried out Exception: posting Double tax treaty: income tax in the country where the employment is exercised Exception: country of residence

Posting of employees Assignment in the U.S. Employee remains under contract with the Belgian employer Temporary: 5 years Home (Belgian) social security system remains applicable - Social contributions paid in Belgium - Employee enjoys Belgian social benefits Certificate of coverage

Income tax Tax treaty: Wage & salaries taxed in the country where the employment is exercised  U.S. Exception: income taxed in the country of residence of the employee (Belgium) if 3 conditions are fullfilled: - The employee’s stay in the U.S. is not exeeding 183 days within any 12-month period - The remuneration is paid by an employer based in Belgium - The remuneration is not borne by an establishment the employer has in the U.S.

Summary Short assignment in the U.S.: posting Employment contract remains applicable Social contributions paid in Belgium Income tax: U.S. Belgium

Contact Hugues THIBAUT International Affairs Manager International@groups.be + 32 2 507 18 80 www.groups.be