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.
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 under the civil code (or an analogous rule abroad) or under a court order to pay maintenance to an ex, (grand)children, (grand)parents, parents-in-law or children-in-law;
- the beneficiary is destitute;
- they don’t live with you;
- you pay regularly and the sums aren’t excessive.
You need to identify the person who receives the maintenance on p. 3 of your paper tax return. The tax authorities have warned they are going to pay particular attention to payments made to beneficiaries in other countries. Depending on the double tax treaty (list) between Belgium and the country where the beneficiary lives, you may have to deduct withholding tax and pay that to the State.
Maintenance paid to a beneficiary abroad is also tax deductible for 80% if it meets the conditions. In principle, the payer has to deduct 26.75% tax and pay that to the tax office, unless Belgium must exempt the maintenance paid under the double tax treaty between Belgium and the country where the beneficiary lives. Check the list : “ex(empt)“ means that no withholding tax is due and “imp(osable)” means that 26.75% tax has to be deducted. Read more about your obligation here. In any case, whether tax is due in Belgium or not, you have to file a tax form 281.30 – online or on paper.
Some planning opportunities
When one parent pays maintenance, she can take an 80% deduction for her payments if the children are domiciled with the other parent. However, she gets no allowance for dependents; the other parent will be entitled to the full allowance. They both pay less taxes, €100 paid in maintenance gives a tax reduction of about €40.
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