If you have received a specific form of salary, e.g. As a matter of principle, Belgium doesn't tax capital gains if they are made by way of "normal management of private wealth". I have just received a green non resident tax return for the first time too and like you both, am struggling. Maintenance paid can be deducted up to 80% if. If you think you can prove higher expenses, you can do so but it will take a bit of work. The Corporate Tax Rate in Belgium stands at 29 percent. So, it appears that UK pensions paid to non-UK residents are generally paid brut and we must declare them without using the exemption (Belgian tax return Cadre V section C). For that reason, the allowances above are prorated according for every full month you were in Belgium; that is the month that you are here on the 15th. Since taxation of rental income is the priority right of the country in which the property is located, this income will need to be first declared and taxed in Portugal. Larger equipment and office furniture must be depreciated. But this is what I think will be happening. If you are unemployed, you can also deduct some expenses, but there is no allowance. In that case you have to declare a percentage of that capital every year. Dependents cannot have more than €3,330 in income (other than €26,840 in pensions).  Flanders has kept the “woonbonus” for mortgages until 2019 but since 1 January 2020, replaced it with a lower purchase tax. Speculation would be e.g. Also it may be that they do not withhold any tax at source and so we would always have to do a tax return for Belgium to pay the tax over. Penalties range from 10 to 200 percent of the tax. By continuing to browse the site, you are agreeing to our use of cookies. If all your securities accounts together are worth more than €500,000, the tax is 0.15% of the average value of the account, not just on every euro over €500,000. For single parents, the threshold is €4,810. Please note that the old rule still applies for pensioners who received their pension for the first time before 2013. And the reason we have to fill in that non Belgian Income Part XIII, is because they will only offset our Belgian pension with a deduction/allowance, if our Belgian pension is at least 75% of our worldwide total income. This form can be filled in online or on paper. I’m a UK taxpayer and apart from the pension don’t have any other Belgian income. Usually, this is about 2 months after the invoice date. In other words, you plan to pay taxes in your home country and in Belgium? Tax reduction for childcare: As from income year 2020 the maximum amount per childcare day and per child would be increased from EUR 11,20 to EUR 13. (Mine is not due until April, so this has not been tested yet.  And if they were working to pay for some pocket money, they can earn €2,780 and that will be disregarded as personal financial resources (see p 3). Try not to be too creative. This tax is paid annually by all natural persons (i. e. not companies) who receive income in Belgium, be it as employed or self-employed persons. If you receive child support, you don't declare that in your own tax return. And if it is taxed in Belgium, all the joys of trying to claim Double Tax Relief with HMRC are still to come !! you use your laptop to check your private emails) are only partially allowable depending on the use (e.g. In 2013, the rule was inversed and nowadays UK pensions can be taxed in the UK, Belgium has to exempt the pension but when Belgium gives an exemption, that is with “exemption with progression”. Did you get any help or advice? If you have received remuneration for work outside Belgium and if that income is taxable in the other country under the relevant article of the double tax treaty (usually article 14 or 15, see the list), you must still include that income in your tax return. Ci RH. If you received interest on a regulated savings account, that is tax exempt up to €980 per spouse or per partner (that is €1,960 for a couple). It relates to remuneration paid to an employee (A), unemployment benefit (B), allowances paid during illness or invalidity (C) etc. The platform for Belgium's international community. (1361/1362), you can pay up to €980 per year to a pension savings fund or insurance, that can give you a tax saving of 30% or €294 ; you can opt for a 25% tax saving with a maximum of €1,260, the saving is €315.0.  If you pay more than €980 in pension savings, the taxman will assume you opt for the 25% tax saving. What we hope to give you are some useful guidelines and an overview of different options for finding more information. In fact, you don't report your accounts to the taxman but to the National Bank. You need to identify the person who receives the maintenance on p. 3 of your paper tax return. For a full declaration, you would need to pay the full fee to an accountant. In that case, you need to manually enter your declaration via Tax-on-web (see below). The articles on this website reflect the personal experience of the authors and do not represent official information, endorsement or promotion of third parties, unless specifically mentioned. Not doing so results in a tax increase of 2.25% of the tax. However, she gets no allowance for dependents; the other parent will be entitled to the full allowance. Personal income taxes in Belgium can be complicated and difficult to calculate yourself. They must mention that their spouse or partner is an international official so that the taxman doesn't give them this marital deduction. Property owners may also find themselves liable for the likes of property tax, gift tax, and inheritance tax. If you have paid your tax in advance, e.g. Please note that life insurance is normally not taxable in Belgium. If there are special forms of pension, the pay slip issued by a Belgian organisation will clarify the code. And you must declare and pay the stock exchange tax yourself, unless the overseas bank appoints a representative to do that. The 2020 return will cover the period between 1.01.2019 and 31.12.2019. The information you put there goes in the same pink tax return. The securities tax must be paid by 31 August 2020. In 2018 Belgium introduced a wealth tax ; in 2019, the Constitutional Court declared the tax discriminatory and annulled the tax … for the future.  This means that you must pay the tax a last time in 2020. This will summarise your income and costs and provide the final calculation. If you had spread your holdings over several banks, they will not have deducted the tax. It is advisable to get some legal help if you have to pay the Cayman tax. Belgian income tax: There's nowhere to hide, Help! If you have such a legal arrangement, you must also declare the interest and dividends that accumulated in it. In box III, you declare the income from any real estate you may own, that can be actual rental income you receive or the theoretical income from a second or third residence. We fill the Belgian Pension in Part VI Some other family members can be dependent too: your parents, grandparents, brothers and sisters if they are over 65 (code 1043). In Belgium the Belgian Tax Authorities (both federal and regional) are intensively working on various direct and indirect measures in order to support companies in these challenging times. This is not an automatic right, but in most cases, the tax authorities do approve such requests. If your employer reimburses you for expenses you paid for him, that reimbursement isn't taxable income, but these expenses aren't allowable either. €1,300 per transaction); 1.32% on the sale of accumulation mutual funds (capped at €4,000 per transaction). Belgium reintroduced an adjusted DST proposal, a 3 percent tax on revenues from activities such as the selling of user data on companies with global revenues exceeding €750 million (US $840 million) and domestic revenues exceeding €5 million ($5.6 million). Reductions in the top social security rate will be gradually introduced between 1 April 2016 and 2020. The form also seems to ask about foreign (non Belgian) income but I live and pay tax in the UK. This can give you a tax saving of 30%. The Belgian state pension goes in code 1228/2228 and a survivor's pension goes in 1229/2229. Once you become a Belgian tax resident, you should be aware that all Belgian tax residents are liable to taxation on their worldwide income and gains. A "non-recurring profit-based bonus" is tax exempt up to €2,942 if you complete the bonus under code 1242 (A.9) – you don’t have to claim the exemption in code 1241 anyumore. You can also authorise an accountant to file your tax declaration on your behalf. Â. because it is a second residence), you need to declare the rental value. Customs seize 11 million counterfeit cigarettes at Zeebrugge port, Flanders unhappy with Brussels road toll plan, Europe considers phasing out one and two eurocent coins, Belgian youth not comfortable with money, financial sector survey shows, Brussels local currency Zinne plans electronic version, Belgian income tax: The Bulletin's fully updated guide to filing your 2020 return, Belgian income tax: A guide to cross-border taxation, Filing your Belgian income tax return online, Help! In that case you have to report the tax yourself. the tax on dividends you receive abroad, you are entitled to a tax reduction of 1.125%. If you want to deduct expenses, detail them in a spreadsheet and the total goes in code 1258/2258. These are normally taxed at source; the (Belgian) bank or the company that pays the dividend deducts 30% tax when they pay out. Pensions paid by the European Institutions are not liable to tax, but pensions paid by other international organisations usually are. because you don't have an employer who deducts the tax from your salary, you report that under 1570/2570 in Box XII. In Wallonia, the tax reduction is 10% with a maximum of 150 titres, that is €135 per spouse or partner. Tax revenue stood at 48% GDP in 2012. you have a legal obligation under the civil code (or an analogous rule abroad) or under a court order to pay maintenance to an ex, (grand)children, (grand)parents, parents-in-law or children-in-law; you pay regularly and the sums aren't excessive. a physician or an accountant), you must declare the rent you receive under code 1109/2109. 10% for furniture over ten years, 33.33% for a laptop over three years). Sales Tax Rate in Belgium is expected to reach 21.00 percent by the end of 2020, according to Trading Economics global macro models and analysts expectations. In Flanders, you recover 30% or €450. That cadastral revenue will be multiplied with 1.4 and corrected for inflation. If you only have one securities account, you do not need to check the box.  See below about the “Securities Tax”. If you deduct your expenses, you must assume that the tax man will ask you to prove them and will want to see the invoices and receipts. The tax authorities have warned they are going to pay particular attention to payments made to beneficiaries in other countries. If you are a foreigner working in Belgium, you will generally be liable to pay Belgian taxes and file a tax return. That is the rent you would receive from a tenant if it were let out. What is taken into accounts are stocks and share certificates, bonds and bond certificates, units in common investments funds, cash bonds and warrants.  The securities tax is not due on pension savings funds, branch 21 and branch 23 life insurance, registered stocks and bonds, options, futures or swaps. Enter your email address to subscribe to this blog and receive notifications of new posts by email. The Belgian tax authority is fully aware of the complexities of its system, so it offers several useful aids for those who need help filling in their forms: Because of the Corona crisis, the help for the deaf and hard of hearing is also being provided through remote interpretation through the MyMMX platform. Here is the chat. The official of one of the European Institutions or an international organisation ticks 1062. Under the double tax treaty (see the list), that will be a maximum of 10 or 15%; usually you will have to provide a certificate of residence in Belgium. You cannot take any deductions for expenses, but the tax authorities automatically deduct 40% to cover maintenance and repairs. Learn more about the tax system in Belgium 1325 G St NW Suite 950 Washington, DC 20005 202-464-6200 Depending on the double tax treaty between Belgium and the country where the beneficiary lives, you may have to deduct withholding tax and pay that to the State. Box VII is for the income of your investments, i.e. If the bank pays you more than €980, it will deduct 15%, but the bank doesn't know if you had interest on other savings accounts. Because of the double-taxation agreement, you won’t need to pay 1,300 EUR (500+800EUR) of tax, but only 800 EUR: 500 EUR to the Portuguese state and 300 EUR to the Belgian state. If you have children under 3, you may be better off with the additional allowance of €600 for dependents. Your foster parents can also be a dependent. In effect this pushes the Belgian income in the higher tax brackets. Children who are at university during the week are still considered to be living with you if they keep their registration with the commune. This site uses Akismet to reduce spam. If you cannot afford to pay the entire amount at once, you can request to pay your outstanding tax in instalments. The income tax calculator for Belgium allows you to select the number of payroll payments you receive in a year, this could be 12 (1 a month), 13 (with bonus), 14 (with additional payments) or more, you can choose the number of payroll payments in the year to produce an annual income tax … Allowable expenses would be your union contribution, the cost of traveling for training, postage stamps for job applications, …. There is, however, no specific code for expenses; you deduct the expenses from your unemployment benefit, and you declare the net income in code 1260/2260. An allowance for using your own car is tax exempt but only up to €410. This is in particular the case if you have overseas bank accounts. If tax has been deducted, you report the net income after tax and 30% tax is due on the net. "Branch 23" policies ("insurance wrappers") are linked to investment funds and they can go up and down. He was one who still came under the old rules and so his is 100% taxed in the UK. Income from property, work, investments, and miscellaneous sources is all taxable. For the tax due for the period from 1 October 2018 to 30 September 2019, you must file the tax return no later than the last day before your income tax return (30 June on paper or 16 July online). The VAT is a sales tax that applies to the purchase of most goods and services, and must be collected and submitted by the merchant to the Belgium governmental revenue department. There isn't much information in the National Bank’s database, just a list of your bank accounts. Dividends from overseas companies must be reported in code 1444/2444, but you can deduct the rest of the exemption of €800 first. For prior coverage, see the following issues of GMS Flash Alert: 2020-230 (13 May 2020) and 2020-247 (22 May 2020). It is only when the bank has not deducted the 30% tax - mostly because it is a foreign bank - that you have to report the dividend or interest income under the correct codes, usually 1444/2444. That goes from. If the double tax treaty states that the pension is taxable in the other country and that Belgium must exempt it, you must report the pension but you must mention that it is exempt at the end of box V under letter C. Do not forget to copy that at the bottom of p. 3 of the actual (pink) tax return. The pension is exempt in the UK. You can, however, deduct the income tax you paid on the property abroad. The tax is also due when you buy or sell through a foreign bank or on an online account. There are separate codes for maintenance that is paid retroactively following a court decision (1193) and for maintenance that is paid in a lump sum. The federal service Finance has a website with FAQ regarding the declaration of foreign bank accounts and life insurances. The spouse or registered partner of the official files a separate tax return and checks code 1021. If you pay alimony and/or child support to your ex, you can deduct 80% from your income. As I say, I have not tested this out yet. It's important to keep in mind that this tax calculator is meant to be an estimation of your tax burdern and not a precise number. Consequently, the authors do not assume any responsibility or liability for any issues or damages stemming from the use of the information found on this website. The Square.Gent is a virtual meeting place and an information source for all expats in Ghent, Belgium. My mother tongue is French and if anyone needs help with completing their form or any other correspondence, please ask and I will be pleased to help. If you are not sure whether you might have done this already, you can check your file on the website of the Belgian Central Bank. This is a difficult word for a trust, a foundation or a foreign company in which you accumulate income tax free. Belgium must adapt this rule but there is no political will to do so. The other country will also want to tax the dividends or interest. The stock exchange tax is charged at : When a distribution fund redeems its units, no tax is due, but the sale or purchase of such units on the secondary market is taxed at 0.12% (max. If you own property abroad, you need to declare that as well (normally in codes 1130/2130) as Belgium will normally have a double tax treaty (list) with the other country. Dependants are all the people who live with you and who are financially dependent. These calculations are approximate and include the following non-refundable tax credits: the basic personal tax amount, CPP/QPP, QPIP and EI premiums, and the Canada employment amount. You have received a salary statement (281.10), or a statement confirming other benefits paid during 2019, and next to each figure, you will find a code that corresponds to the codes in the tax return. The National Bank has the list of your Belgian bank accounts, but you must report your overseas bank accounts yourself. When you choose the digital method of filling in the tax declaration, you can sign in with your e-card reader or with the smartphone app called itsme. That list helps the taxman when he wants to investigate your bank accounts, but he can only get that list if he has indications of tax fraud or if he has indications that your spending is higher than the income you declared. If you receive alimony, you must declare it in Box VI under code 1192 and you will be taxed on 80% of the maintenance. 2020/C/81, 17 June 2020. Let’s say that in Portugal you only need to pay a tax of 500 EUR per year for that income. We fill all our non-Belgian source income in Part XIII. June 22, 2020 Update:. Only 80% of the child support is taxed and 80% of €11,075 is €8,860, which is wiped out by the personal allowance of €8,860. Hi Liz & AGKBrown They are usually not deductible unless you pay tax on the dividends and interest at the ordinary tax rates rather than at the fixed rate of 30% (see above). This page provides - Belgium Corporate Tax Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. There are two things you need to know: firstly, Belgium has high taxes on succession. It is advisable to attach a note to your tax return to explain for what reason the income is taxable in the country where you worked, e.g. These are normally taxed at source; the (Belgian) bank or the company that pays the dividend deducts 30% tax when they pay out. if you are a day trader, that may well become a professional activity and then your gains may be liable to tax, and possibly social security, as a professional investor. Please note that if you receive an overseas state pension that may be liable to tax in the other country. The value is the average of the values at the end of each quarter (31 December 2018, 31 March 2019, 30 June 2019, and 30 September 2020. So for those of us like me, living in the UK and receiving the Belgian pension which is now taxed in Belgium and not the UK, I think the following will apply. If you use a room at home as your office, you can deduct a percentage of the purchase cost of your house and the interest on the mortgage, of the electricity, etc. The card reader can be purchased at any electronics shop and some banks, like Belfius, offer bank card readers that can also read e-cards. We hereafter highlight the most important Belgian corporate resident (and non-resident) income tax measures taken (also applicable for non-for profit taxation), as well as some other measures. , I have a closer look at the end of box IV under letter O commune tax the website its! 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