The basic allowance for childless workers is €8,990, so any earnings below this amount won’t be subject to income tax. Updated for 2020! Charitable contributions of minimum EUR 40 (up to a maximum of 20% of net taxable income, with a maximum of EUR 397,850 for income year 2021) made to certain recognised EEA institutions give right to a 60% tax reduction. Moreover, in order to be entitled to regional tax benefits in Belgium, those non-residents must also maintain their tax residency in another member state of the EEA. Belgium has implemented the anti-hybrid provision of Directive 2014/86/EU of 8 July 2014 in its internal tax law. The exempt income, personal deductions, and the attribution of income to the spouse are in principle applicable both to residents and non-residents, although for non-residents these exemptions and deductions are only applicable provided they earn at least 75% of their worldwide professional income in Belgium. In terms of Corporate Income Tax, two beneficial regimes exist in parallel: the old Patent Income Deduction, which allows a deduction of 80% of gross income from the exploitation of patents developed or improved in Belgium, and the new Innovation Income Deduction, which allows a deduction of 85% of qualifying innovation income determined in accordance with the OECD’s … The deductibility rate of automobile costs in the hands of Belgian companies (and Belgian PEs) varies in a range between 50% and 100% of the automobile costs (including the fuel costs), depending on the CO2 emission of the company car and the type of fuel. In Wallonia, it’s levied at 3.3% to 5.5% and in Brussels from 3% to 40%, depending on the value … 50% of representation expenses and business gifts (there are exceptions. The following amounts are deductible in determining taxable income. The tax topics and laws are managed by government through the Ministry of Finance. Please try again. they, among other things, follow the continuity principle from an accounting perspective). This site uses cookies to collect information about your browsing activities in order to provide you with more relevant content and promotional materials, and help us understand your interests and enhance the site. they relate to losses and charges that are deductible for Belgian tax purposes. All rights reserved. Accurate Tax Refund Assessment 24/7 Live Chat Support Maximum Legal Refund Guaranteed. This tax deduction is available whether or not the child(ren) lives with you, and irrespective of their age, activity, marital status or place of residence, including outside of France. Belgium allows Net Operating Losses (NOLs) to be carried forward with no time limits (no carry back). … However, a minimum tax base should be taken into account. The following expenses are not tax deductible in Belgium (this list is not exhaustive): Tax losses can, in principle, be carried forward without any limitation in time. Interest expenses are, in principle, tax deductible insofar as thin capitalisation/30% EBITDA limits are respected (see Thin capitalisation in the Group taxation section) and the interest is at an arm’s-length rate. dividends and interest. Income that may be attributed to the non-earning spouse cannot exceed EUR 11,170. Gift tax. Hidden gains are defined as the positive difference between the fair market value of an asset and its acquisition or investment value reduced with the accepted write-offs and … Depending on your personal situation, you may be entitled to certain deductions or tax credits. Tax and Social Security Considerations By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement. Belgium is entitled to tax the hidden gains that exist at the time of the transfer of assets of a Belgian company to its foreign establishment, the profits of which are exempt in Belgium under a tax treaty. Remuneration costs of domestic personnel give right to a 30% tax reduction (up to certain limits and under certain conditions). Employee: 41.5% [10% income tax (out of gross minus pension & health deductions), 25% pension contribution (out of gross), 10% health contribution (out of gross)] - Gross incomes below RON 3,600 benefit from personal deductions of up to RON 1,310 from taxable income. Taxes in Belgium. For each child less than three years old on 1 January of the tax year, the above amounts are increased by EUR 610, provided no child custody expenses are deducted. persons or PEs situated or located in a tax haven, bank accounts managed or held by one of these recipients or PEs, and. The temporary tax-exempt reserve can be created for only one taxable period closed/ended during the period between the 13 March 2019 and 31 December 2020. This calculator is also intended to be quick and … All income derived by a company con- A new tax regime for R&D called“Deduction for Innovation Income” is about to be enacted. Each country’s tax code is a multifaceted system with many moving parts, and Belgium is no exception. If you have problems opening the pdf document or viewing pages, download the latest version of Adobe Acrobat Reader.For further information on tax treaties refer also to the Treasury Department's Tax Treaty Documents page. they correspond to an existing and known obligation at year-end closing (in addition to the other already existing conditions), and. Life insurance premiums: 30% with a maximum of EUR 2,350. According to Belgian VAT legislation, the supply of immovable property (i.e., land as well as buildings) is in principle exempt from VAT. Only one spouse receives earned income: A splitting is applicable. Each country’s tax code is a multifaceted system with many moving parts, and Belgium is no exception. Le Crédit d'impôt monoparental (CIM) est appliqué sur demande et sous conditions. There are specific rules for payroll and taxation in Belgium. Visit our. Capital losses on shares (except upon liquidation, up to the amount of the loss of the paid-up capital of the liquidated company). All rights reserved. The tax deduction scheme is a long-standing policy measure in Belgium. bank accounts managed or held through credit institutions (or their PE) located in one of those states. At the federal level, the most commonly granted reductions mainly concern: At the regional level, the most commonly granted tax reductions concern: In addition to the above-mentioned deductions, some personal exemptions are granted. Where the payments have been reported duly and timely, their tax deductibility will be subject to the ability of the taxpayer to prove that (i) said payments were made as part of genuine, proper transactions and (ii) they were not made to an entity under an artificial construction. This site uses cookies to collect information about your browsing activities in order to provide you with more relevant content and promotional materials, and help us understand your interests and enhance the site. EUR 990 and EUR 1,270. The current limited deduction of prior-year losses in the framework of a tax-neutral reorganisation also applies to the carried forward dividends-received deduction. The law includes an exhaustive list of gifts that are deductible, including gifts in cash to certain social, cultural, or scientific organisations. By that time, the tax return should be returned to the tax authorities, duly signed and completed, properly mentioning your taxable income, expenses and deductions for 2013. This affiliation will allow you and your employees … evidence must be brought that the change is not purely tax driven). These deductions include, amongst others, carried-forward losses. This means that if you give something to an heir and then die within three years, they’ll then need to pay inheritance tax on the value of the gift. The capital repayment of a mortgage loan. Security investment against theft or fire. General Generally speaking, the taxable base for corporate income tax purposes is the worldwide income, less allow-able deductions. La période transitoire, qui a débuté le 1er juillet 2016, s’achèvera en effet le 30 juin 2021. It must be stressed that the exemption takes place on the lowest part of income (at the lowest marginal tax rates). 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