2020 Tax Return: Tax on Securities Accounts

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.

What is this tax? If you own one or more securities or brokerage accounts with a bank, a brokerage firm or an investment firm and all your securities accounts together are worth more than €500,000, you have to pay the tax on securities accounts. What is taken into account are stocks and share certificates, bonds and bond certificates, units in common investment 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.

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. 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. If you have a securities account with a Belgian bank, the bank has charged the tax to your account, reported it to the tax authorities, and paid the tax by 20 December of last year.

If the bank has not withheld the tax because your account was under €500,000, because you have accounts with more than one bank or brokerage firm, you can ask the bank to declare and pay the correct tax.

Alternatively, you can file the tax return with the form you can find here and pay the tax yourself. This is, in particular, the case if you have overseas bank accounts. You can do this with an online tax return via www.MyMinfin.be. 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). You do not report the value of your securities accounts in your income tax return, but you must mention if you have more than one securities accounts (see p 44). The securities tax must be paid by 31 August 2021.

Penalties range from 10 to 200 percent of the tax.

Your Tax Return :

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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