Crypto remuneration in Belgium

crypto illustration

The ‘War for Talent’ in Belgium continues at full speed. Companies are struggling to attract suitable candidates, forcing business leaders to look at creative solutions for attracting and retaining talent. In addition to wellbeing programmes and flexible working hours, forward-thinking leaders are exploring innovative approaches, including incorporating crypto and digital assets as part of the remuneration package.

Although some employees in Belgium are happy to receive part of their salary in cryptocurrency, cryptos are not yet legal tender in Belgium and thus cannot be paid as salary. The wage protection act of 12 April 1965 stipulates that wages must be paid in the only legal tender in Belgium for the time being: the euro.

Countries such as the USA, Singapore and the UK are pioneers in cryptocurrencies. Both the UK and Germany have already embraced the reality of cryptos, by issuing guidelines on the taxation of cryptos for individuals. In the Netherlands too, cryptos are increasingly being accepted as a benefit in kind within the remuneration package.

Our specialists in Compensation & Benefits at PwC have developed an analysis based on a hypothesis that Belgian labour law would allow employers to award (a portion of) variable remuneration in the form of cryptos. 

crypto metaverse

The key elements to consider are:

 
  • The behaviour of international companies, as well as global trends around cryptos and remuneration, will accelerate the need to develop a relevant legislative framework in Belgium.

  • Integrating a crypto scheme within compensation packages can positively impact the company’s Employee Value Proposition and position it among the top employers. In particular, it will appeal to those younger generations who may be more ‘crypto aware’ than their peers.

  • Those companies that can no longer use the copyright scheme to compensate their workers may consider a crypto plan an innovative form of incentive.

  • For employers, paying staff in cryptos can be interesting, because it does not dilute the company’s ownership.

  • Another benefit for companies is the absence of impact on the business cash flow when issuing crypto tokens or creating their own crypto. This can be particularly valuable for start-ups requiring cash flow relief.
 
  • Companies may introduce various forms of crypto plan, such as restricted crypto units or options on cryptos. They can be linked to individual or collective performance indicators (and/or waiting periods) to link the plan to personal or company performance. This is particularly relevant for directors and managers of listed companies.

  • Companies seeking to implement a crypto plan - regardless of its form - are strongly recommended to seek advice in order to understand the various potential implications – including legal, tax, social, reporting and regulatory requirements - of this new form of reward.

  • If companies are considering such a move, they are strongly advised to apply for a ruling in advance on the tax treatment of the benefit.

  • The impact of the envisaged Belgian tax reforms should be taken into account for companies considering introducing cryptos or digital assets as part of the remuneration packages on offer.

Want to find out more?

Contact Bart Van den Bussche or Aurore Zadeling for an initial exploratory discussion.

Contact us

Bart Van den Bussche

Partner, Reward Services, TLS, Brussels, PwC Belgium

+32 474 23 93 48

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Aurore Zadeling

Senior Manager Reward & Personal Income Tax, Brussels, PwC Belgium

+32 490 65 03 66

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Saskia Rademakers

Saskia Rademakers

Marketing Director, PwC Belgium

Tel: +32 476 98 52 02

Connect with PwC Belgium