No tax deduction for asylum seekers

Asylum seekers without a professional income will from now on be taxed as non-residents in Belgium and are therefore no longer subject to our personal income tax. “As a result, they will no longer be able to enjoy a tax credit for dependent children,” says Minister of Finance Johan Van Overtveldt. In answer to his proposal, the government has approved a draft law in this regard. “The refugee crisis is costing our society a lot of money, which is why it is more important than ever that we use the taxpayer’s money in the best possible way,” the Minister says.

At the moment, as from their arrival in Belgium, asylum seekers can enjoy tax credit for dependent children, without having to be required to be employed to get it. This means that they were able to get money from the tax authority without declaring any taxable income or paying any taxes. “Even without income from a job, they could claim a reimbursement from the tax authority. That makes no sense and is also not fair to people who have lived and worked here all their lives,” explains Johan Van Overtveldt. “As a result of this change in the law, they will no longer be eligible for those tax breaks.”

Keeping a careful eye on expenses

“The asylum crisis is presenting us with major challenges, both socially and financially, yet another reason to keep a careful eye on the limits of our Social security Social security is currently managed at the Federal level in Belgium. The most important pillars of Belgian social security are: sickness and invalidity insurance (NIDHI), pensions, unemployment insurance and child allowances. In addition, occupational illness, occupational accidents and annual holidays are dealt with at this level. Some Flemish parties have been campaigning for years for (large parts of) social security to be transferred to the Regions and Communities. social security and our government expenditure,” the Minister concludes.