If you are new to Belgium, or if this is the first time you have to file a tax return, these are a few of the things you need to know. The first time you receive a tax return, it comes in the form of a brown envelope with a tax return and a form to prepare the tax return …
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2019 Tax Return : the Guide
28 June is when the taxman wants your tax return; if you file online, you have another two weeks, until 11 July. It’s time to file your tax return again. Whether you are new to Belgium or have been filing your tax return here for years, you may have a number of questions. We will address some of these questions …
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The myth of the 183 days
Tax residence can be a difficult concept, in particular if one has many residences. Johnny Hallyday is a French rock star, who died at the end of last year. In fact, he was Belgian but became the French rocker of all rockers, made millions and moved to Switzerland for tax reasons. In 2013, he took up residence in Santa Monica, California. …
2018 Tax Return : Appeal the Tax Bill
How and where you do that is explained on page 2 of your tax bill. You have to send a letter to the regional directorate within after you receive the tax bill. That means the letter must arrive with the tax authorities within six months plus three working days from the date the assessment was sent out. That is the …
2018 Tax Return : The Tax Bill
Now that you have filed your tax return, all that you can do if wait for the tax man to send you the bill. The “avertissement extrait de role”/”aanslagbiljet” is really the tax bill for your 2017 income. This is what it looks like. If the tax bill is not sent before 30 June 2019, the taxman may have to …
2018 Tax Return : Nowhere to Hide
For years, many people thought they could safely “forget” to declare the income they had outside Belgium; the taxman would never find out. The EU Savings Directive was a rude wake-up call as the Belgian tax authorities started enquiring about overseas bank accounts. And when Belgian banks started reporting to the tax authorities abroad, they thought “Surely, Luxembourg and Switzerland …
2018 Tax Return : Box XIV – Trusts
Moreover, you have to confirm whether you have set up a legal arrangement (a “construction juridique”) or whether you are the beneficiary of such a legal arrangement. This is a difficult word for a trust, a foundation or a foreign company in which you accumulate income tax free. Cayman tax If you have such a legal arrangement, you must also …
2018 Tax Return : Box XIV – Overseas Bank Accounts and Insurance Policies
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. Do I have to report the money on my bank account? No, you tick the box with code 1075, list the countries where you have bank accounts with the name of the account holders. You also …
2018 Tax Return – Box XII – Paying your Taxes in Advance
If you have paid your tax in advance, e.g. because you don’t have an employer who deducts the tax from your salary, you report that under 1570/2570 in Box XII. Paying the tax in advance is highly recommended, in particular for self-employed. Not doing so results in a tax increase of 2.25% of the tax. If you don’t have to …
2018 Tax Return – Box X – Other Tax Deductions
Box X is for all sorts of payments or expenses that you have made and for which you can claim a tax reduction. That goes from donations to charities (1394): the minimum is €40 per charity, if you have a tax certificate of the donation, you can recover up to 45% of the donation; childcare (1384): you can deduct €11.2 …