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The 2026 tax reform will have concrete implications for employee remuneration and companies’ remuneration policies. A gradual increase in net income, a new limit for certain fringe benefits and the return of copyright remuneration for IT: three developments to keep a close eye on.
The personal income tax reform adopted this summer goes beyond mere technical adjustments. Several measures will have a concrete impact on employers, HR professionals and employees. Some will directly affect employees’ net income, while others will influence how companies structure their remuneration packages.
A gradual increase in net income
The reform aims to gradually increase employees’ disposable income. The tax-exempt allowance will increase over the coming years, while the allowances for dependent children will be adjusted, particularly for the first and second child. Conversely, the marital quotient will gradually be reduced. The payroll withholding tax rules have already been amended, allowing some of these effects to be gradually reflected in employees’ payslips.
The tax employment bonus will also be increased. For beneficiaries of the highest employment bonus, the rate will increase from 52.54% to 63% as from assessment year 2027 and subsequently to 72% from 2029. For other beneficiaries, the rate will increase from 33.14% to 35% from 2029. The objective is to allow the employees concerned to retain a larger share of their remuneration.
For employers, this development confirms the importance of transparent communication about total remuneration. Employees are increasingly focusing on the net income they actually receive.
A new limit for certain benefits in kind
The reform introduces a new mechanism targeting certain benefits in kind that are valued on a lump-sum basis, such as stock options and company cars. Where these represent more than 20% of the total taxable remuneration of all employees, a separate contribution of 7.5% may apply to the portion exceeding this threshold. A separate sanction applies if the threshold is exceeded in respect of company directors.
Companies that provide a significant portion of remuneration in the form of benefits such as a company car, employer-provided accommodation or other lump-sum valued benefits will therefore need to carefully assess the composition of their remuneration packages.
The objective is not to challenge fringe benefits as such, but rather to introduce a stricter framework for certain remuneration structures that rely heavily on such benefits.
Software re-enters the copyright tax regime
Another important change for the technology sector is that computer programs will once again be explicitly included in the copyright tax regime as from 1 January 2026. This change ends the uncertainty created by the 2023 reform and reopens certain opportunities for the companies and developers concerned.
However, the regime will not automatically apply to all IT profiles. The existence of a protected work and an effective assignment or licensing of the rights will remain essential conditions. Companies concerned should therefore analyse their situation before implementing or revising a remuneration policy based on this mechanism.
Beyond the tax changes themselves, the 2026 reform encourages companies to reassess certain aspects of their remuneration policies. Changes in net income, the increased regulation of fringe benefits and the reintroduction of software into the copyright tax regime are all developments that companies should anticipate in order to identify both the potential risks and the opportunities that may arise.
By Nicolas Stockmans, Partner – Global Mobility Services, BDO and Melissa Claessens, Senior Manager – Global Mobility Services, BDO