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 liable to tax while pensions paid by other international organisations usually are.
In Belgium, employer funded pensions are geared to be paid out in the form of a pension capital. There is a 5.55% social security contribution and a fixed tax rate of 10% if you take your pension at the legal retirement age of 65. The code will normally be 1215/2215.
If there are special forms of pension, the payslip issued by a Belgian organisation will clarify the code. If it is an overseas pension, you have to work out in which code the pension goes.
Please note that if you receive an overseas state pension that may be liable to tax in the other country. If you receive a government pension from another country, that will definitely be taxable there. Private pensions paid by an overseas pension fund or scheme are usually taxable in Belgium but that depends on the double tax treaty (check the list / map), e.g. a pension from the U.K. is normally taxable there, unless you first took out your pension before 2013.
If the double tax treaty states that the pension is taxable in the other country and that Belgium must exempt it, you must report the pension under the relevant code as set out above, but you must mention that it is exempt at the end of box V under letter C. Do not forget to copy that at the bottom of p. 3 of the tax return.
Even if the double tax treaty says that an occupational pension is liable to tax in Belgium, that does not always mean that it is fully taxable in Belgium. If the overseas pension has been built up by the employer to the individual and definitive benefit of the employee, in particular before 2004, the pension is not taxed as an occupational pension. It is deemed to be an annuity that belongs to the pensioner and it includes a reimbursement of capital and a payment of interest. Only the interest part is taxed at a fixed rate of 30%. This is established case law but the Belgian tax authorities are trying to change that with a modification to the law.
Your tax return:
- the Guide
- Tax filing in Corona Times
- Is this your first time?
- Couples and Children
- When do I need to file?
- on Paper or Online?
- Filing Online
- Filing on Paper
- The Taxman sends a Tax Proposal
- Box I – Contact Details and Bank Account
- Box II – Your Family Situation
- Box III – Real Estate
- Box IV – Earnings
- Box V – Pensions
- Cross Border Taxation
- Box VI – Maintenance Received
- Box VII – Investment Income
- Box VIII – Maintenance Paid and Losses from Previous Years
- Box IX – Mortgage Payments
- Box X – Other Tax Deductions
- Box XII – Paying your Taxes in Advance
- Capital Gains
- Box XIII – Overseas Accounts and Insurance Policies
- Box XIII – Trusts
- Stock Exchange Tax
- Tax on Securities Accounts
- Nowhere to hide
- The Tax Bill
- Appealing the Tax Bill