Belgian Employers Face Urgent Tax Rule Change for French Cross-Border Workers: Withholding Required Until Form 276 is Received
Brussels, Belgium – In a breaking development impacting businesses employing French citizens as cross-border workers, Belgian employers are now required to withhold professional withholding tax until they receive the fully completed Form 276 Front./Grens. This immediate change, announced today, aims to ensure accurate tax reporting and compliance with Franco-Belgian agreements. Failure to comply could result in systematic checks and potential penalties from tax authorities. This is a critical update for any company relying on skilled labor from across the border, and understanding the new process is paramount.
What Defines a Cross-Border Worker?
The regulations apply to employees who meet specific criteria. To qualify as a cross-border worker, an individual must:
- Maintain their sole permanent residence in the French border area.
- Carry out their salaried work within the Belgian border area.
- Not work outside the Belgian border zone for more than 30 days in a calendar year.
Crucially, those meeting these conditions are typically taxable only in France, eliminating Belgian professional withholding tax – but only if the correct paperwork is in order.
The Critical Role of Form 276 Front./Grens
Form 276 Front./Grens is the key to unlocking the advantageous tax regime for cross-border workers. It’s a multi-step process requiring collaboration between the worker, the employer, and the French tax authorities. Here’s a breakdown:
- Worker Completes Section I: The employee fills out their portion of the form (in duplicate) and provides both copies to their Belgian employer.
- Employer Completes Section II: The employer completes their section of the form and returns both copies to the worker.
- Worker Submits to French Tax Inspector: The worker sends both copies to their designated French tax inspector.
- French Tax Inspector Certifies: The French tax inspector completes their section, confirming the worker’s cross-border status for French tax purposes, and returns one copy to the worker.
- Worker Provides to Employer: The worker delivers the certified copy to their Belgian employer.
Urgent Action Required: Withholding Tax Until Form is Received
This is where the breaking news comes into play. Until the Belgian employer receives the second copy of Form 276 Front./Grens, duly completed and certified by the French tax inspector, they must withhold and pay professional withholding tax as if the employee were a standard Belgian resident. This is a significant shift and requires immediate attention. The deadline for submitting this form for the year 2026 is before the payment of the first remuneration.
Beyond Form 276: Proof of Residence and Border Zone Exits
The requirements don’t stop at Form 276. Workers must also provide annual proof of residence in the French border area (e.g., utility bills) to support their claim. Employers are also responsible for tracking and documenting any days the worker spends outside the designated border zone, along with the reason for each absence. These records must be readily available for administrative review.
What Employers Need to Do Now
If you employ French cross-border workers, take these steps immediately:
- Communicate this change to all affected employees.
- Remind employees to initiate the Form 276 process with their French tax inspector.
- Until the completed form is received, ensure withholding tax is applied to their remuneration.
- Contact your Securex Client Advisor if you have any questions or concerns.
The Belgian tax authorities are implementing systematic checks on cross-border worker compliance. Proactive adherence to these new regulations is essential to avoid potential penalties and ensure a smooth payroll process. Staying informed and acting swiftly is the best defense against unexpected tax liabilities. This isn’t just about compliance; it’s about fostering a strong, legally sound relationship with your valuable cross-border workforce.
