ECJ condemns Belgian tax on second residence abroad

Belgium has been condemned again by the Court of Justice of the European Union for its tax regime for a second home in another Member State. The issue is not new and not always well understood. Belgium charges tax on all real estate owned, even if you do not receive rent for it. If you only own the house you …

2018 Tax return : Couples and Children

In Belgium, the tax return is a tax return for the whole family. Parents file jointly and declare their children’s income, unless they receive maintenance or had a student job. Filing jointly or separately? Spouses and registered partners (legal cohabitants/wettelijke samenwonenden) don’t get to choose whether they file jointly or separately. Couples who live together but have not registered their …

2018 Tax Return : is this your first time?

If this is the first time you file a tax return, here are a few things you need to know. The first time, you will receive a brown envelope with a tax return and some documents to help you file (see Filing on Paper). Whether you receive a Brussels, Flemish or Walloon tax return depends on where you were registered …

2018 Tax Return : the Guide

29 June is when the taxman expects your tax return unless you file online; then you have another two weeks. For the first time ever, there are different tax forms if you live in Brussels, Flanders or Wallonia all in two or three languages. This is because some of the tax incentives reductions, e.g. for mortgages, cheques service, renovation … …

Flanders reduces inheritance tax

In Belgium, gift tax and inheritance tax are regional taxes. That has not always been the case, some twenty-five years ago, the gift tax and the inheritance tax were a matter for the federal parliament. The Flemish, Brussels and the Walloon parliaments have gradually changed the rules, starting with small changes to the inheritance tax rates to some more fundamental …

When do you have to file your tax return?

Deadlines for filing the income tax return in 2018: On paper: 29 June 2018 Online via tax-on-web: 12 July 2018 Online via a tax adviser: 25 October 2018 For non-resident individuals, the deadlines for filing the income tax return in 2018 On paper: 8 November 2018 Online via tax-on-web: 6 December 2018 Online via a tax adviser: 6 December 2018 …

Tax authorities announce targeted audits

A few days before sending out the tax returns for 2017, the tax authorities announce on their website (FR/NL) which groups of taxpayers they will audit more specifically. For individuals, these are Company directors who deduct their actual business expenses instead of the lump sum deduction. The tax administration suspects that some directors artificially prove more professional expenses in order …

Belgium Proposes VAT Regime for Real Estate Rentals

After a budget review, Belgium’s federal government proposed in its summer budget in March an optional VAT regime for rental agreements, starting October 1, 2018. For more, read the contribution in Tax Notes International or ask the author.

Belgium and Netherlands Sign Agreement on Taxation of Pensions

On 5 March, Belgian and Dutch officials signed an agreement clarifying the taxation of pensions under article 18 of the double tax treaty (in English) between the two countries.  The agreement was published in the Staatscourant (the Dutch official journal). The agreement is the result of a change in policy announced by the Dutch government at the end of last …

Constitutional Court Writes Obituary for Fairness Tax

The Belgian Constitutional Court has annulled the so-called fairness tax, abiding by a judgement of the Court of Justice of the European Union, from which the Constitutional Court had sought a preliminary ruling. However, contrary to what most observers had hoped, the Constitutional Court’s ruling does not cancel the tax retroactively, except in one specific situation. For more, read the …