MODEL INDIVIDUAL INCOME TAX RETURN FOR INCOME YEAR 2013 PUBLISHED IN THE BELGIAN OFFICIAL JOURNAL
02 April 2014
The model for the individual income tax return for the income year 2013 (assessment year 2014) was published in the Belgian Official Journal of 28 March 2014. In total there are 40 tax codes less compared to last year (actually 55 tax codes have been removed and 15 new ones have been created). Below is a summary of the most important changes.
Deleted tax codes
Because of the abolition of the additional 4% withholding tax on investment income exceeding the EUR 20,020 threshold, the tax codes related to this additional tax have been scrapped. From 1 January 2013 the majority of the investment income is taxed at a flat rate of 25% withholding tax, making the additional 4% withholding tax superfluous.
The number of tax codes related to energy saving investments has also been reduced. Only the tax reduction for investments in roof insolation remains in force. In addition, less used tax reductions have been repealed, i.e. reductions for dwellings in a zone for positive urban management, bonds issued by the Caisse d’Investissement de Wallonie, electric car and recharge points for electric cars at home.
New tax codes
Apart from these reductions, also new tax codes have been introduced.
Professional income from seasonal work in the hotel and catering industry will be taxed at a flat rate of 33%. For this kind of income a new tax code has been introduced.
Furthermore, some new tax codes have been created for certain additional pensions (group insurances, pension funds,… organised by the employer). Since 1 July 2013, two additional tax rates were introduced for these kinds of pensions. If the capital is paid at the age of 60, it will be taxed at 20%. If the capital is paid at the age of 61, it will be taxed at 18%. In the past, a 16,5% rate applied to payments at both ages.
There are also new tax codes in respect of the tax reduction for service and ALE vouchers. The maximum tax reduction was halved since 1 July 2013. Because of this change there are now two tax codes, one for the amounts paid for service and ALE voucher before 1 July 2013, and one for the amounts paid after this date.
The obligation to report the existence of foreign bank accounts and life insurances already existed. From this year, there is also the obligation to report certain legal constructions (fund, trusts,…) of which the taxpayer, his spouse or his minor children, are founder, beneficiary or potential beneficiary. The name of the founder or (potential) beneficiary is to be mentioned in the tax return.
Should you have questions on this subjecty or require assistance with personal income tax compliance formalities, please do not hesitate to contact your usual BDO contact or our Competence Center Employment Tax and Legal Services.