• MODEL BELGIAN PERSONAL INCOME TAX RETURN FOR RESIDENTS FOR ASSESSMENT YEAR 2015 – INCOME YEAR 2014 MADE PUBLIC

MODEL BELGIAN PERSONAL INCOME TAX RETURN FOR RESIDENTS FOR ASSESSMENT YEAR 2015 – INCOME YEAR 2014 MADE PUBLIC

07 April 2015

On 7 April, the Belgian tax administration published the form for the Belgian tax return for residents concerning income year 2014 on the website of the Federal Public Service Finance.

At first sight it seems that the tax form has increased in size yet again, more specifically from 19 pages last year to 21 pages this year. This is largely due to box IX in which the expenses of (mortgage) loans and individual life insurances related to real estate need to be reported. Because of the sixth Belgian state reform, this matter has become considerably more complex due to the separation of powers between the Belgian regions and the federal government: the regions are responsible for the expenses with regard to the own home of the taxpayer (the house/apartment the taxpayer himself owns and occupies) while the federal government is responsible for the real estate not occupied by the taxpayer himself.  A distinction therefore has to be made between these expenses to be reported in different parts/codes of the new tax return form.

Another change can be found in box XIV in which the taxpayer has to indicate if he has foreign bank accounts. Last year, the Belgian tax administration announced that they would contact all Belgian taxpayers who in their return of income year 2011, 2012 and 2013 declared that they had foreign bank accounts, to ask these taxpayers to provide more information to a central administration point within the National Bank of Belgium (CAP). Although this has not yet happened, in the tax return form the taxpayer has to confirm whether or not additional information has been provided to the CAP. This means that in the next couple of months the taxpayers concerned will most likely receive a letter from the Belgian tax administration with a request to provide more information about their foreign bank accounts to the CAP.

Apart from the above there are some other minor changes to be taken into account:

  • In box X for the expenses of roof isolation the taxpayers no longer have to report the amount of the expenses but they themselves have to calculate the tax reduction they are entitled to (30% of the expenses, absolute maximum of the tax reduction 3.040 EUR).
  • The “cadastral” value of the own home no longer has to reported in box III of the tax return but in box IX, part B. As a reminder, the ‘cadastral’ value of the own home only has to be reported in the tax return by taxpayers who have concluded a mortgage loan before 1 January 2005.
  • A box has been added for residents of the Flemish region who have granted “win-win loans” and who are therefore entitled to a tax credit (box XI).
  • In the box concerning the moveable income a number of codes have been added for moveable income that as an exception to the rule is subject to a separate  tax rate of 20% instead of the normal rate of 25%

Contact

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.