What happens when spouses die at the same time or shortly after each other? Do they inherit from each other? And what about inheritance tax, is it due twice? This is not only an issue for spouses but also for other family members who stand to inherit from each other like parents and children, or siblings. Simultaneous death We speak about simultaneous death when two …
Belgian Real Property in a Trust
In a recent decision nr SP 22004 dated 20 June 2022, the Flemish Tax Authorities (in short “Vlabel” for Vlaamse Belastingdienst”) have clarified the taxes due upon the transfer of a Belgian property to a trust and the subsequent transfer of the property to the beneficiary. The decision related to the plan of a non-resident to transfer a Belgian property to a US living trust where the …
The taxman, a sore loser
When the taxpayer and the taxman do not agree on the interpretation of the tax law, they often end up in court. When the taxpayer wins, the taxman generally – usually – appeals as a matter of principle. When the court of appeal confirms the first decision, the taxman can submit the second decision to the Supreme Court, the Cour de Cassation. He often does …
Taxes in Corona Times
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 …
Remuneration and Physical Presence in the Double Tax Treaties
When is an employment exercised in the other State within the meaning of article 15 § 1 of the OECD Model Tax Convention? The question is important because the Work State can then tax the worker’s remuneration and Belgium, where he lives , must exempt the remuneration. A recent decision of the Ghent Court of Appeal of 8 March 2022 clarified the issue in respect …
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: 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. …
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 …
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 …
Tax Return: The Taxman sends a Tax Proposal
Over 50% of half of all taxpayers do not have to file a tax return. The taxman already has all the information that they would just copy in their tax forms. This is the case for pensioners who do not have a side job, people with an invalidity or unemployment allowance, students over 18 who have some income, e.g. from a student job; even employees …