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 : Tax on Securities Accounts

Since 2018, Belgium has a wealth tax! If you own one or more securities or brokerage account on which you hold stocks and bonds, units in mutual funds or warrants, you may have to pay the tax on securities accounts. If all your securities accounts together are worth more than €500,000, the tax is 0.15% of the average value of …

2018 Tax Return : Stock Exchange Tax

Belgium has always charged a tax on stock exchange transactions, such as the purchase and sale of some financial instruments (bonds and stocks) on a secondary market, and the sale of mutual funds (UCITS), through a Belgium-based professional intermediary, a bank or broker. The tax is also due when you buy or sell through a foreign bank or on an …

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 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 …

2018 Tax Return – Box IX – Mortgages

In box IX you mostly report interest and mortgage payments to buy your main residence (under I) or another property (under II). The tax incentives to buy your main residence are a regional matter and you will see that the codes relating to your main residence start with a 3 (for him, on the left) or a 4 (for her). …

2018 Tax Return : Box VIII – Maintenance Paid and Losses from Previous Years

Losses If you have made losses on past years, i.e. you had more expenses than income, you can carry forward these losses to later years and deduct them here. Maintenance paid If you pay alimony and/or child support to your ex, you can deduct 80% from your income. Maintenance paid can be deducted up to 80% if you have a …

2018 Tax Return : Box VII – Investment Income

Box VII is for the income of your investments, i.e. dividends and interest. These are normally taxed at source; the (Belgian) bank or the company that pays the dividend deducts 30% tax when they pay out. If that is the case, you don’t have to declare the interest or dividends in your tax return, but foreign banks do not withhold …