2018 Tax Return : Box V – Pensions

Box V is for pensions and other similar income. The Belgian state pension goes in code 1228/2228 and a survivor’s pension goes in 1229/2229. The tax that has been deducted goes in code 1225/2225.

Other pensions such as the complementary pension paid by a pension fund or other pension scheme are to be reported usually under code 1211/2211. Pensions paid by the European Institutions are not liable to tax while pensions paid by other international organisations usually are.

In Belgium, employer funded pensions are geared to be paid out in the form of a pension capital. There is a 5.55% social security contribution and a fixed tax rate of 10% if you take your pension at the legal retirement age of 65. The code will normally be 1215/2215.

If there are special forms of pension, the pay slip issued by a Belgian organisation will clarify the code. If it is an overseas pension, you have to work out in which code the pension goes.

Please note that if you receive an overseas state pension that may be liable to tax in the other country. If you receive a government pension from another country, that will definitely be taxable there. Private pensions paid by an overseas pension fund or scheme are usually taxable in Belgium but that depends on the double tax treaty (check the list/map), e.g. a pension from the U.K. is normally taxable there, unless you first took out your pension before 2013.

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 tax return.

 

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Author: Marc Quaghebeur

Marc Quaghebeur is a Belgian tax lawyer with Cabinet DAVID specialising in international tax issues and cross border estate planning. He is a member of the Brussels Bar and the Society of Trust and Estate Practitioners. He

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