By a bizarre twist of events, while Rishi Sunak, the Chancellor of the Exchequer introduced an increase of the national insurance contributions, it came to light that his wife, Akshata Murthy has non domicile status and avoids an estimated £20 million in taxes in the United Kingdom. She is the daughter of N. R. Narayana Murthy, the founder of the Indian IT multinational Infosys, and …
TEP-talks
EU officials: An Introduction to Taxes 21 April 2022 @ 18:00 The tax status of an EU official is governed by the articles 12 and 13 of the Protocol (No 7) on the Privileges and Immunities of the European Union.Article 12 states that the remuneration they receive from the European Institutions is exempt from national taxes in the Member States. The exemption of the remuneration paid by the international institutions …
Hosting Ukrainian refugees, and taxes?
On 23 March 2022, The Belgian Federal Service for Finance has issued clarifications on the tax consequences of hosting Ukrainian refugees who have fled their country following the invasion by Russia. The main clarifications are Hosting refugees at home (for free!) does not impact the tax regime of your home. An owner-occupied house continues to be fully tax exempt for income tax purposes. Moreover, the …
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The tax deduction for alimony payments
The Court of Justice of the European Union has rendered a decision that will give more non-residents a personal allowance, an allowance for dependent children and the right to deduct the alimony or maintenance they pay. Belgian residents can deduct 80% of the alimony or maintenance payments they made during the year (Article 104 ITC 1992 if they meet the conditions following conditions : they …
Belgium replaces its Expatriate Tax Regime by an Inpatriate Tax Regime
Belgium has introduced an inpatriate tax regime starting from 2022 that will phase out the expatriate tax regime. The new rules must give the tax regime the legal certainty that the 1983 tax regime lacked while promoting Belgium to foreign investors and enable international companies to post or recruit qualified personnel at an acceptable and competitive cost. The 1983 expatriate tax regime Foreign executives have …
Constitutional Court gives foreign (inheritance) tax credit
In a decision of 3 June 2021, the Constitutional Court ordered a major change of the Belgian inheritance tax code, or rather the three regional inheritance tax codes. The Court ruled that the inheritance tax legislation in all three regions, is discriminatory, where it grants a credit for overseas inheritance tax on foreign real property, but not for overseas inheritance tax levied on movable assets …
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Confused UK retirees …
The Belgian tax authorities are emphasising that it has nothing to do with Brexit, but this year, they have suddenly decided to tax Belgian state pensions paid to British retirees living in the UK. The problem is the double tax treaty between Belgium and the United Kingdom and the transitional rule for older retirees. What is it all about? If you live in one country …
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EU Officials after Brexit
It is official now. The UK is not part of the EU anymore. Many people struggle with the new rules that govern how the UK and EU will live, work and trade together. Brexit will also affect many Brits living and working in Belguim, including EU officials, British EU officials living and working in the EU, (non-British) EU officials living and working in the UK, …
France Upholds Broad Interpretation of Permanent Establishment
In a recent landmark decision, the French Supreme Administrative Court has ruled that a French company can qualify as a dependent agent, and as such be the permanent establishment of an Irish affiliated company, if it habitually exercises the authority to conclude contracts in the name of that company, even though formal consent to these contracts can only be given by the Irish affiliate. (Conseil …
The US ends corporate anonymity
Shell companies that conceal the identity of a company’s true owners facilitate crime and corruption. Most countries have put an end to such anonymity. The U.S.A. has finally followed suit by adopting the Corporate Transparency Act that obliges the true beneficiaries to disclose their identity.