persons or PEs situated or located in a tax haven, bank accounts managed or held by one of these recipients or PEs, and. Il existe 3 types d'avantages fiscaux : les dépenses déductibles les réductions d'impôt les crédits d'impôt Dépenses déductibles Les dépenses déductibles consistent en des dépenses faites pendant la période imposable et qui viennent en déduction des revenus net imposables. bank accounts managed or held through credit institutions (or their PE) located in one of those states. Contrary to most mortgage interest deduction (MID) systems3, having diminishing tax benefits over time, here the size of the deductions depends on the monthly repayment of a fixed amount over the lifetime of the loan4. Expenses incurred for the maintenance and renovation of certain real estate. Belgian accounting and tax laws allow amortisation of goodwill arising at the occasion of an asset deal. We will also check if you can avail of any additional tax relief or deductions. Belgian tax refunds can be surprisingly lucrative so if you’ve ever worked on a Belgian ship, it’s worth checking what you’re owed. The tax topics and laws are managed by government through the Ministry of Finance. Error! Calculate your take home pay in Belgium (that's your salary after tax), with the Belgium Salary Calculator. Furthermore, the expatriate will only be assessed according to graduated tax rates on remuneration for work actually performed in Belgium and on other … 80% of the support (alimony) payments to near relatives or a separated spouse are deductible (non-residents can deduct only payments made to residents of Belgium; however, there are some tax treaty exceptions). Charitable contributions of minimum EUR 40 (up to a maximum of 20% of net taxable income, with a maximum of EUR 397,850 for income year 2021) made to certain recognised EEA institutions give right to a 60% tax reduction. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. The reporting has to be made on a special form to be attached to the (non-resident) CIT return. Advantages granted to employees for social reasons, with certain exceptions (e.g. Different filing formats (and deadlines) Tax-on-web: your get out of tax filing jail free card In this case, income may be attributed to the spouse earning less, until 30% of total earnings without exceeding the maximum of EUR 11,170 is reached. If a change of control of a Belgian company takes place (e.g. Fees, commissions, etc. À partir du 1er juillet 2021, il ne sera plus possible d’appliquer le régime de déduction pour revenus de brevets. La période transitoire, qui a débuté le 1er juillet 2016, s’achèvera en effet le 30 juin 2021. But if you are a non-resident who lives in Belgium for fewer than 6 months (183 days) during the year, you have to pay Belgium income tax only on income you earned in Belgium (including rents and capital gains). Also, the secret commissions tax is not tax deductible. Residents of Belgium pay personal income tax on their total … On this page: ... You live in Belgium and you are a non-resident taxpayer. hospitalisation insurance premiums, gifts of a small value). Regional taxes and contributions, including penalties, increases, ancillary expenses, and interest for late payment, are not tax deductible in Belgium (certain exceptions apply). In addition to social security contributions and professional expenses, some non-business expenses can also be deducted from the taxable basis, and personal exemptions are granted. Le Crédit d'impôt monoparental (CIM) est appliqué sur demande et sous conditions. The agency for this register ... A number of forms of tax relief are available and can either be a tax reduction or a deduction at the time of purchase. However, for certain assets, rates are set by administrative instructions as follows: Intangible fixed assets must be amortised over a period of at least five years for tax purposes (except research and development [R&D] expenses, for which the minimum amortisation period is three years). Visit our. According to Belgian VAT legislation, the supply of immovable property (i.e., land as well as buildings) is in principle exempt from VAT. This large set of measures makes Belgium an attractive location for capital-intensive companies, equityfunded headquarters and treasury centres. These are normally taxed at source; the (Belgian) bank or the company that pays the dividend deducts 30% tax when they pay out. Royalties are subject to withholding tax at a rate of 15% if the underlying contract was concluded on … The following amounts are deductible in determining taxable income. Only one spouse receives earned income: A splitting is applicable. The basic personal allowance is currently 8 400 EUR which will be deducted from the total amount of taxes. Menu. By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement. Non-residents with properties in Belgium and those who receive 75% or more of their total worldwide income in Belgium can qualify for the same deductions and tax allowances as Belgian residents. According to the Minister of Finance, 'clientele' (client lists) should be amortised over a period of 10 to 12 years. For the year of acquisition of an asset, only the proportionate share of an annual depreciation calculation can be accepted as depreciation for income tax purposes (in principle to be computed on a daily basis). Consequently, the maximum amounts for a number of tax reductions will not be indexed during these four years and will remain at the same level as income year 2019. There are specific rules for payroll and taxation in Belgium. Under certain limits and conditions, companies that expect to incur losses during the COVID-19 pandemic period are entitled to claim a temporary exemption of all (or a part of) their taxable result of a financial year preceding this period, up to the amount of such losses (other limitations apply). tax benefits. 17% of the benefit in kind of company cars or 40% if the fuel costs are fully borne the company (minimum taxable basis). Did you know that Belgium has one of the highest tax rates in Europe? The capital repayment of a mortgage loan. Chaque année, le programme informatique Tax-Calc est mis à votre disposition sur le site du Service … All rights reserved. they relate to losses and charges that are deductible for Belgian tax purposes. if the shares of the company are transferred and along with them the majority of the voting rights), the amount of tax losses, investment deduction, NID carried forward, IID carried forward and DRD carried forward available in that company (before the change of control) can no longer be offset against future profits unless the change can be justified by legitimate needs of a financial or economic nature in the hands of the loss realising company (i.e. Exact … The double tax treaty doesn't let Belgium tax rental income., see "Cross border taxation" on p. 22. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. paid to beneficiaries located in foreign countries and not properly reported, will, in principle, be subject to the secret commissions tax. The personal basic exemption amounts to EUR 9,050. The power to levy taxes has only the parliament. included in the EU list of non-cooperative jurisdictions. Accordingly, the “exceeding borrowing costs” are not considered as tax deductible 1 insofar they exceed the company’s interest deduction capacity which is the highest of following two thresholds : (i) EUR 3 million or (ii) 30% of the company’s taxable EBITDA. Hidden gains are defined as the positive difference between the fair market value of an asset and its acquisition or investment value reduced with the accepted write-offs and … Gift tax. The law includes an exhaustive list of gifts that are deductible, including gifts in cash to certain social, cultural, or scientific organisations. EUR 990 and EUR 1,270. By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement. Above this amount they are subject to a 15 percent withholding and final tax rate. The rate of gift tax varies between regions. Each country’s tax code is a multifaceted system with many moving parts, and Belgium is no exception. Belgium is entitled to tax the hidden gains that exist at the time of the transfer of assets of a Belgian company to its foreign establishment, the profits of which are exempt in Belgium under a tax treaty. Pension savings contributions, with a maximum of EUR 990 or EUR 1,270, depending on the extent of the tax reduction (i.e. The first step towards understanding the Belgium tax code is knowing the basics. For employees, the standard expense deduction amounts to 30% of the gross earning, up to a ceiling of EUR 4,920. Income Tax. This comprehensive R&D regime consists of tax deductions on qualifying IP income, deductions on R&D investments and (refundable) tax credits, cash savings on payroll cost of researchers and full tax exemption of R&D subsidies. Experts At Tax Refunds For Jointly Assessed And Married Couples . Machinery and equipment (depending on the type), they are set up to cover clearly identified losses and charges (i.e. Belgian resident and non-resident CIT, including advance tax payments, any surcharge imposed in case of insufficient advance tax payments, any interest for late payment of the CIT, and any Belgian movable WHT, is not tax deductible in Belgium. This tax deduction is available whether or not the child(ren) lives with you, and irrespective of their age, activity, marital status or place of residence, including outside of France. 80% of the support (alimony) payments to near relatives or a separated spouse are deductible (non-residents can deduct only payments made to residents of Belgium; however, there are some tax treaty exceptions). This temporary exemption of profits is only applicable to tax years 2019 or 2020 (corresponding to an accounting year ended in the period between 13 March 2019 and 31 July 2020) and is granted through the creation of a temporary tax-exempt reserve to be deducted from the taxable reserves in that financial year. Vous recherchez des informations détaillées sur la fiscalité ? That's why we have created this tool in order to help you estimate your personal income tax burdern in Belgium based on the latest data from the Belgian government. It was implemented in 1992 to provide It was implemented in 1992 to provide incentives for energy saving investments to the industry sector. Vous devez rentrer une déclaration d’impôt pour votre ASBL (même si celle-ci n’a aucun revenu imposable).Pour la plupart des ASBL, il s’agit de la déclaration à l’impôt des personnes morales.En principe, vous devez rentrer la déclaration pour le 30 novembre 2020. Some non-business expenses give rise to a tax reduction. Dans ce cas, consultez le mémento fiscal. Some non-business expenses give rise to a tax reduction. This site uses cookies to collect information about your browsing activities in order to provide you with more relevant content and promotional materials, and help us understand your interests and enhance the site. The maximum of 30% can be exceeded (up to a maximum of 50%), provided sufficient evidence of the real assistance of the helping spouse is given. Regarding the maximum amount for pension savings, please note that a majority amendment was tabled before the Finance Committee with a view to maintaining the upper limits applicable for the tax years 2022 to 2024 at their level for the tax year 2021, i.e. Payment of services performed in the framework of local employment agencies or paid with service-checks. A legal entity is a resident of Belgium if it has its legal seat, main establishment or place of effective manage-ment in Belgium. Payroll & Tax in Belgium. In the event of non-reporting, the payments will be disallowed expenses for CIT purposes. © 2017 - 2021 PwC. All income derived by a company con- Foreign PE losses can only be deducted from the profits of the Belgian head office profits if certain conditions are fulfilled. In terms of Corporate Income Tax, two beneficial regimes exist in parallel: the old Patent Income Deduction, which allows a deduction of 80% of gross income from the exploitation of patents developed or improved in Belgium, and the new Innovation Income Deduction, which allows a deduction of 85% of qualifying innovation income determined in accordance with the OECD’s … If the company has employees in Belgium, it must register with the Belgian social security administration for salaried workers (ONSS/RSZ) and comply with all applicable Belgian employment regulations. This affiliation will allow you and your employees … The carried forward tax losses of the companies involved are then reduced based on the proportionate net fiscal value of the company (before the restructuring) compared to the sum of the net fiscal values of both the merging entities (before the restructuring). Belgium has implemented the anti-hybrid provision of Directive 2014/86/EU of 8 July 2014 in its internal tax law. Notional interest deduction (NID) Belgian CIT payers can claim NID for tax purposes, reflecting the economic cost of the use of capital, equal to the cost of long-term, risk‑free financing. This change does not apply to existing provisions created before tax year 2019. Deductions: travel allowance for public transport; costs for your own home; expenditure on income provisions (e.g. By continuing to browse this site you agree to the use of cookies. Depreciation rates are based on the expected lifetime of the assets concerned, which are normally agreed upon by the taxpayer with the tax authorities. Security investment against theft or fire. People working in Belgium may be subject to up to 57% income tax… After the law is signed by the king, it … The exempt income, personal deductions, and the attribution of income to the spouse are in principle applicable both to residents and non-residents, although for non-residents these exemptions and deductions are only applicable provided they earn at least 75% of their worldwide professional income in Belgium. The tax deduction scheme is a long-standing policy measure in Belgium. From 1 January 2020, the nominal corporate income tax rate will be 25%. However, in response of COVID-19, a so-called temporary 'loss carryback' regime or 'reserve COVID-19' has been introduced to strengthen the solvency and the equity of companies. Personal tax allowance and deductions in Belgium. A Belgian company can claim a deduction for royalties, management service fees, and interest charges paid to foreign affiliates, provided such amounts are at arm's length. Accurate Tax Refund Assessment 24/7 Live Chat Support Maximum Legal Refund Guaranteed. Cette déduction s'opère dans la déclaration à la TVA (trimestrielle ou mensuelle). The remaining 30% is fully taxable at the CIT rate. Taxes in Belgium. real estate tax) and foreign taxes, however, are considered as tax deductible. Belgium payroll & taxation. evidence must be brought that the change is not purely tax driven). The employer withholds employee's social security … Every property in Belgium is listed in the government property register - het Kadaster/le Cadastre. This calculator is also intended to be quick and … Please see www.pwc.com/structure for further details. Interest expenses are, in principle, tax deductible insofar as thin capitalisation/30% EBITDA limits are respected (see Thin capitalisation in the Group taxation section) and the interest is at an arm’s-length rate. If a tax-free merger or (partial) de-merger takes place, Belgian tax law provides for a partial transfer/maintenance of the rollover tax losses of the absorbed/absorbing company. There is no tax loss carryback provision under Belgian tax law (except for the agriculture sector). It must be stressed that the exemption takes place on the lowest part of income (at the lowest marginal tax rates). Belgium: 29% (25% from 2020. Employee: 41.5% [10% income tax (out of gross minus pension & health deductions), 25% pension contribution (out of gross), 10% health contribution (out of gross)] - Gross incomes below RON 3,600 benefit from personal deductions of up to RON 1,310 from taxable income. Réduction d’impôt Tax Shelter « covid-19 » pour des entreprises accusant une forte baisse de leur chiffre d’affaires Circulaire 2020/C/140 Modèle d'attestation (PDF, 116.93 KB) Circulaire 2020/C/153 relative au calcul de la limite de 80 %; TVA The transfer of real estate in Belgium is normally subject to the transfer tax. There are no limits on certain deductions (such as DRD, innovation income deduction [IID], and the investment deduction). A new tax regime for R&D called“Deduction for Innovation Income” is about to be enacted. This means that rental income is not taxed but pushes the tax on other income that is taxable in Belgium in the higher tax brackets. Life Assurance: If it is required by the mortgage lender to guarantee the loan, the premiums are tax deductible. As a result, many expatriates who already own a house in another country will lose the benefit of the abattement if they come to live in Belgium temporarily and not rent but decide to buy a house here. not to cover 'general' risks) that have been rendered probable by events that took place during the taxable period concerned, they are booked at the end of the financial year in one or more separate accounts on the balance sheet, they are reported on a specific form enclosed with the tax return, and. Employment-related expenses are also deductible, provided they are substantiated; alternatively, standard deductions may be claimed. By continuing to browse this site you agree to the use of cookies. Child custody expenses, up to a maximum of EUR 13.70 per day for income year 2021 (EUR 13 for income year 2020) for children under 14 years of age give right to a 45% tax reduction. Belgium Tax Dbriefs. Salary. Le programme Tax-Calc du SPF Finances vous permet de calculer vous-même de manière anonyme le montant d'impôt des personnes physiques que vous devrez payer ou qui vous sera remboursé. dividends and interest. As far as we know, Belgium is the only country with a combined deduction for interest costs and capital2. Your message was not sent. As a general rule, expenses are tax deductible in Belgium if they are incurred in order to maintain or to increase taxable income, they are incurred or have accrued during the taxable period concerned, and evidence of the reality and the amount of such expenses is provided by the taxpayer. real estate tax) and foreign taxes, however, are … Remuneration costs of domestic personnel give right to a 30% tax reduction (up to certain limits and under certain conditions). Such charges will be disallowed unless the Belgian company can prove that the payments are reasonable and that they correspond to genuine and real transactions. The amount of the maximum deduction varies according to the circumstances of your child. As a fixed deduction facilitates the … In determining the tax base, compulsory social security contributions (paid in Belgium or abroad) are fully deductible. For remunerated directors, the standard deduction is a flat 3% and cannot exceed the ceiling of EUR 2,590. Deductions outside the basket are fully deductible. Belgium.be Informations et services officiels. For any other dependent person, an amount of EUR 1,650 is deductible. However, a minimum tax base should be taken into account. they result from any contractual, legal, or regulatory obligation (other than those resulting merely from the application of the law on accounting rules and annual accounts). The complete texts of the following tax treaty documents are available in Adobe PDF format. Also, certain formalities need to be applied to benefit from the measure. Depending on your personal situation, you may be entitled to certain deductions or tax credits. Self-employed income only qualifies for tax if the source of that income is a Belgian employer. Please see www.pwc.com/structure for further details. Pour les dons faits en 2020, vous bénéficiez d’une réduction d’impôt de 60 % du montant de votre don si celui-ci répond aux conditions suivantes :. We can file your Belgian tax return and make sure you get any tax that you’ve overpaid. How does the Belgium tax code rank? Navigate the tax, legal, and economic measures in response to COVID-19. For each child less than three years old on 1 January of the tax year, the above amounts are increased by EUR 610, provided no child custody expenses are deducted. An outline of its contents is provided here in English. they, among other things, follow the continuity principle from an accounting perspective). 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