For the latest developments, access the EY Tax COVID-19 Response Tracker. That goes from. If your employer reimburses you for expenses you paid for him, that reimbursement isn't taxable income, but these expenses aren't allowable either. This means that in the summer of 2021, you’ll need to file your tax return for 2020. You pay tax on the rental income minus a deduction of 40% (however, that deduction is limited to 3.05 times the cadastral revenue). Does HMRC action this quickly? Check box 1001 if you are single or living with your partner and you haven't formalised your partnership. You didn't mention the UK State Pension explicitly, but just "If you receive a government pension from another country, that will almost always be taxable there.". As a matter of principle, Belgium doesn't tax capital gains if they are made by way of "normal management of private wealth". Check other codes if your registered partnership has ended or if you are divorced (1014) or took up separate residences (1018). It is advisable to get some legal help if you have to pay the Cayman tax. How to get help for your income tax return 2020, local office of the Belgian tax authority, check your file on the website of the Belgian Central Bank, FAQ regarding the declaration of foreign bank accounts and life insurances, Getting a Driver’s Licence in Belgium and Ghent, Life in Belgium – Quinten Van Hoorebeke – status: boarding, A-Z of Belgian Fries and Ghent’s Frituurs. You need to file a separate tax return for each child, and you declare the child support in code 1192. In box XIV you have to confirm whether you have bank accounts outside Belgium, even if you didn't have any income on these accounts.Â. E.g. Box V is for pensions and other similar income. 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. Box VIIis for the income of your investments, i.e. Expenses for professional home care of sick children would become eligible. The Belgian tax authorities have provided certain clarifications and examples of the new NID regime in Circular 2020/C/22 (Dutch | French). Here is the chat. If you decide to go digital, note that you will automatically keep receiving the annual invitation to fill in the forms electronically. What is good to know is that you are also entitled to any tax deduction that applies to that same type of income in Belgium. In addition to Belgium's income tax, other taxes may apply to wages or profits earned, including social services, medical care, and capital gains taxes. You don't give the value of the insurance policies. If you don't claim a tax deduction for child care, you get an additional personal allowance of €600 if you fill out code 1038). 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. The pension is exempt in the UK. Yes, this also includes rental income from your house in Brazil, stock trading income from Luxembourg and the income from your farm in Spain. We want to showcase what the expat community is up to in Ghent and help newcomers find their way in the city. If you leave it blank, the taxman will deduct the fixed allowance of €4,810. Did you get any help or advice? 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. Are you considering keeping double taxation residency? This will summarise your income and costs and provide the final calculation. All foreign bank accounts of Belgian tax residents must be reported to the Belgian Central Bank (and in your tax declaration). And I think there may be an additional 7% to pay in lieu of a commune tax? If you are submitting your tax declaration electronically, via the Tax-on-web application, the deadline is 16th July 2020. Children who are at university during the week are still considered to be living with you if they keep their registration with the commune. Not doing so results in a tax increase of 2.25% of the tax. But you might have to pay tax in the country you live in. 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. Costs that aren't exclusively professional (e.g. The rules depend on whether you live. your salary statement shows code 250 to the left of your salary and 286 next to the tax withheld at source. They will need to know your full name, your Belgian national registration number and all the documents and information relevant for your 2019 tax declaration. Learn how your comment data is processed. ", On the gov.uk site, they state: "If you’re not a UK resident, you don’t usually pay UK tax on your pension. I asked them to send the forms again in French but I would really like to know whether I only need to fill in the personal and bank details and Section V for my small Belgian pension. Individual income tax rate in Belgium 2009-2019 Total tax rate for medium sized businesses in the Philippines 2005-2020 Individual income tax rate in Luxembourg 2009-2019 As such, TheSquare.Gent and its writers do not accept any responsibility for any use of the information found in this article. Maintenance paid can be deducted up to 80% if. In other words, you plan to pay taxes in your home country and in Belgium? What we hope to give you are some useful guidelines and an overview of different options for finding more information. Pensions paid by the European Institutions are not liable to tax, but pensions paid by other international organisations usually are. If you read through, there are different rules for a Belgian pension received before 2013 and those from 2013. Now she enjoys creating beautiful design, exploring space and talking to people. The double tax treaty between Belgium and the UK stated that UK pensions were taxable in Belgium only and that the UK had to exempt the pension. The Square.Gent is a virtual meeting place and an information source for all expats in Ghent, Belgium. Tax revenue stood at 48% GDP in 2012. You do not have to prove your expenses; you are entitled to an allowance calculated as a percentage of your earnings. Note that at other (non-Corona) times, the Gent local tax office in Zuidertoren offers an interpreter in Flemish sign language. If you don’t have to pay the tax in advance (e.g. In Flanders, you recover 30% or €450. These include speculative capital gains. If you have such a legal arrangement, you must also declare the interest and dividends that accumulated in it. The tax authorities have warned they are going to pay particular attention to payments made to beneficiaries in other countries. because it is a second residence), you need to declare the rental value. But, in that hypothetical situation, if that rental income had been taxed only in Belgium, you would have had to pay 800 EUR per year. (Bearing in mind Covid and their folks could be working from home?). 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. 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. If you buy a second property, you are entitled to federal tax benefits (under II). Belgian residents who must pay the stock exchange tax must file a tax return and pay the tax before the end of the second month following the taxable transaction. “Exemption with progression" means that Belgium exempts the overseas income but that the Belgian tax authorities will take account of this exempted income to determine the tax rate that applies to any income that is taxable in Belgium. When one parent pays maintenance, she can take an 80% deduction for her payments if the children are domiciled with the other parent. Dividends from overseas companies must be reported in code 1444/2444, but you can deduct the rest of the exemption of €800 first. a pension from the U.K. is normally taxable there, unless you took out your pension for the first time before 2013. These are normally taxed at source; the (Belgian) bank or the company that pays the dividend deducts 30% tax when they pay out. You must mention that you claim the exemption at the end of box IV under letter O. Try not to be too creative. Corporate Tax Rate in Belgium averaged 38.08 percent from 1981 until 2020, reaching an all time high of 48 percent in 1982 and a record low of 29 percent in 2018. If you sell within five years, the capital gain is tax at 16.5 %. 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). You can, however, deduct the income tax you paid on the property abroad. This is not an automatic right, but in most cases, the tax authorities do approve such requests. Hi Liz & AGKBrown If the total interest on all your savings accounts, in Belgium and abroad, is more than €980, you have to complete code 1151/2151. Keep up-to-date on significant tax developments around the globe with EY’s Global Tax Alert library. Law of 20 December 2020 laying down urgent provisions in tax matters and the fight against fraud (Official Gazette of 30 December 2020) The draft law has been adopted by the Chamber on 17 December 2020 and has been published in the Official Gazette on 30 December 2020. Are you Liz or anybody else able to advise? 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. If the tenant is a company or someone who uses the property for his profession (e.g. 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). This is also where you can give your telephone number; you don’t have to give your email address any more. Nina came to Ghent many years ago via several other countries, ditching the big city lights for the towers and rivers of Ghent. 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. If you have children under 3, you may be better off with the additional allowance of €600 for dependents. Private wealth is anything that you don't use for your job or for professional purposes. As long as the child support is less than €11,075 per child, or €922.92 per month, they will not pay any tax. Any interest over €980 is taxed at 15% and must be reported in code 1151/2151. This means that every year you deduct a percentage (e.g. To keep up the appearances, the banking secrecy is maintained by storing the information with the National Bank. The deadline for submitting your tax declaration on paper is 30h June 2020 (note that your declaration has to arrive at the tax authority by that date!). This site uses Akismet to reduce spam. Resident tax filing season 2020: when are taxes due? 2020 (tax year 2021), the standard corporate income tax rate is 25% (reduced from 29% for taxable periods ending on or before 30 December 2020 (tax year 2020). Belgium Income Tax Allowance Belgium provides most taxpayers with an income tax allowance of €6,430, which can be kept as a tax-free personal allowance. 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