Covid-19 has changed certain rules and habits. You can get help to complete your tax return but only over the phone and the tax authorities are banking on that. Exceptionally, you can make an appointment at their offices for help. It is only if they cannot help you over the phone that they will meet you in person (see Help!?). You may have been forced …
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 address in the middle of the page within six months 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 tax assessment was sent out. …
Tax Return : The Tax Bill
Now that you have filed your tax return, all that you can do is wait for the taxman to send you the tax assessment or tax bill. The “avertissement extrait de role”/”aanslagbiljet” is really the tax bill for your 2021 income. If you have not seen one before, you can click here to see one. If the tax bill is not sent before 30 June …
Capital Gains
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 …
Tax Return: Box XIII – Trusts
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 an overseas company in a tax haven in which you accumulate income tax-free. Cayman tax If you have such a legal arrangement, you must also declare the interest …
Tax Return: Box XIII – Overseas Bank Accounts and Life Insurance Policies
In box XIIIÂ 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 accounts? 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 tick the box to confirm that …
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 an oaverall tax increase of 2.25% on top f the tax. If you don’t have to pay the …
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 gifts to charities (code 1394): the minimum is €40 per charity, if you have a tax certificate from the charity, you can recover up to 60% of the gift by reducing your tax bill (that is due to Covid, …
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). The rules depend on whether …
Tax Return: Box VIII – Maintenance Paid and Losses from Previous Years
Losses If you have made losses in 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% of these payments from your income. Maintenance paid can be deducted up to 80% if you have a legal obligation …