Constitutional Court gives foreign (inheritance) tax credit

Banco de Espana

In a decision of 3 June 2021, the Constitutional Court ordered a major change of the Belgian inheritance tax code, or rather the three regional inheritance tax codes. The Court ruled that the inheritance tax legislation in all three regions, is discriminatory, where it grants a credit for overseas inheritance tax on foreign real property, but not for overseas inheritance tax levied on movable assets …

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Confused UK retirees …

The Belgian tax authorities are emphasising that it has nothing to do with Brexit, but this year, they have suddenly decided to tax Belgian state pensions paid to British retirees living in the UK. The problem is the double tax treaty between Belgium and the United Kingdom and the transitional rule for older retirees. What is it all about? If you live in one country …

Taxes in Corona Times

Covid-19 has changed certain rules and habits. You cannot visit the tax office to get help to complete your tax return, that has to be done over the phone (see Help!?). You may have been forced to work from home and your employer could pay you a tax-free allowance of €126.94 for working at home, plus €20 (for the use of your own pc) and …

2021 Tax Return: Cross border taxation

If you live in Belgium and you have income from another country, both countries will want to tax the entire income and that may result in double tax. To prevent double taxation, governments sign “conventions for the avoidance of double taxation”. In these double tax treaties, the two states agree which of them can tax business income, rental income, dividends, interest, royalties, salaries, pensions, etc. …

2021 Tax Return: Box V – Pensions

Box V is for pensions and other similar income. Your 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 schemes are to be reported usually under code 1211/2211. Pensions paid by the European Institutions are not …

2021 Tax Return: Box III – Real Estate

In box III, you declare the income from any real estate you may own, that can be actual rental income you receive or the theoretical income from a second or third residence. If you only own the house you live in, you don’t need to declare anything at all, unless you rent out part of your house. If you have a second residence, you need …

EU Officials after Brexit

It is official now. The UK is not part of the EU anymore. Many people struggle with the new rules that govern how the UK and EU will live, work and trade together. Brexit will also affect many Brits living and working in Belguim, including EU officials, British EU officials living and working in the EU, (non-British) EU officials living and working in the UK, …

France Upholds Broad Interpretation of Permanent Establishment

In a recent landmark decision, the French Supreme Administrative Court has ruled that a French company can qualify as a dependent agent, and as such be the permanent establishment of an Irish affiliated company, if it habitually exercises the authority to conclude contracts in the name of that company, even though formal consent to these contracts can only be given by the Irish affiliate. (Conseil …

The US ends corporate anonymity

Shell companies that conceal the identity of a company’s true owners facilitate crime and corruption. Most countries have put an end to such anonymity. The U.S.A. has finally followed suit by adopting the Corporate Transparency Act that obliges the true beneficiaries to disclose their identity.