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Large-scale construction sites

The FPS Finance cooperates with social inspection departments in order to closely monitor large-scale construction sites and the contractors operating there. To this end, our aim is to better inform the contractors concerned about their tax rights and obligations.

Who is this aimed at?

This information is aimed at all contractors, Belgian and foreign, who are active in large construction projects in Belgium, and especially in respect of projects involving the (temporarily) deployment of foreign companies and workforce.

Characteristics of large construction projects:

  • A very large investment amount
  • Deployment of several (foreign) contractors and subcontractors
  • Deployment of many temporary (foreign) workers
  • High public interest

What is the procedure?

The general contractor informs the FPS Finance of all (sub-)contractors active on the site and provides them with the necessary information on tax rights and obligations (see  brochure (PDF, 532.66 KB)).

From the very beginning of the activities, the FPS Finance works with the (sub-)contractors to ensure that they follow the regulations correctly from the start.

This ensures more legal certainty and simplifies the ex-post controls.

Points of particular interest for contractors

  • As a contractor, you are jointly and severally liable to tax and social security debts of subcontractors, and you have an obligation to withhold.
  • Employees should always be properly registered with social security. If not, this is considered illegal labour or undeclared work.
  • You should check whether you, as a foreign contractor, are creating a 'permanent establishment' through your activity in Belgium. This is important to determine whether your income is taxed in Belgium or abroad.
  • You should check whether the foreign workers you employ are taxable in Belgium or not. This is important for the withholding tax you have to deduct.
  • You should check whether there is Transfer Pricing (cross-border intra-group transactions).
  • You should check whether you have to identify yourself for VAT purposes and charge and remit Belgian VAT.
  • Beware of 'false self-employment' - employees who have the status of self-employed persons but are actually working under the authority of an employer. This is a form of social fraud.
  • Foreign employees working in Belgium are entitled to the same gross salary and legal allowances as Belgian employees. Employees must also always be subject to social security (in Belgium or in their home country).

! Please note: this is a non-exhaustive list of points of particular interest. Depending on your individual situation, other tax and social security obligations may apply.

For more information and for questions about your specific situation as a contractor operating on a large-scale construction site: