As a matter of principle, Belgium doesn’t tax capital gains if they are made by way of “normal management of private wealth”. Private wealth is anything that you don’t use for your job or for professional purposes. And the normal management of your private wealth is what you do to keep your wealth growing safely, without speculating. Speculation would be e.g. borrowing to get leverage …
2020 Tax Return: Box VI – Alimony and Child Support
If you receive alimony, you must declare it in Box VI under code 1192 and you will be taxed on 80% of the maintenance. There are separate codes for maintenance that is paid retroactively following a court decision (1193) and for maintenance that is paid in a lump sum. In that case, you have to declare every year a percentage of that capital. Child support …
2020 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, states 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. …
2020 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 …
2020 Tax Return: Box IV – Earnings
Box IV is relevant for most people. It relates to remuneration paid to an employee (A), unemployment benefit (B), allowances paid during illness or invalidity (C) etc. You have received a salary statement (281.10), or a statement confirming other benefits paid during 2017, and next to each figure, you will find a code that corresponds to the codes in the tax return. E.g. your salary …
2020 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 …
2020 Tax Return : Box II – Your Family Situation
This is one box where people make a lot of mistakes. Check box 1001 if you are single or living with your partner and you haven’t formalised your partnership. Spouses and partners It is only if you are married or in a registered partnership that you file your tax return together but only for the following year. If you are currently married or registered partners, …
2020 Tax Return: Checklist
Hopefully, you have put all the documents you received in one envelope or box: your salary or pension statement for 2017, certificates of donations etc …. Which documents and certificates do you need to prepare your income tax return: Earnings: salary statement; holiday pay statement (if not paid by your employer); unemployment benefit statement; illness or occupational injury benefit statement pension statement; all documents evidencing …
Help!?
Don’t get daunted by the tax return; it looks more complicated than it really is. How difficult is it really? For most, filing a tax return should not be that difficult. It is just a question of copying the numbers from one piece of paper onto another one. The first time, things may be quite straightforward because you only have your salary to declare. There …
2020 Tax Return: Filing on Paper
Let’s open that brown envelope; what will you find? The tax return You cannot miss it; it is the document with a little text and columns in red. It resembles a lotto form, and just like a lotto form it is scanned. Just seeing it is quite disheartening, with columns to complete. It is all a question of putting the right number or X with …