Personal income tax return 2022

As a Belgian national resident, you are obliged to report your worldwide income annually in your personal income tax return. The tax season has started…

Submitting your annual tax return (income 2021) is possible since end April 2022.

At that moment in time, the Minister of Finance held his annual press conference regarding this personal income tax return. A number of topics were discussed that may be important for you. The different deadlines for submitting your personal income tax return were also mentioned.

Below we have highlighted the most important topics.

Tax return deadlines

You must submit your Belgian resident income tax return no later than:

  • June 30, 2022
    • if you submit your own tax return on paper
    • if you amend your proposed simplified return on paper
    • if you ask for assistance from a public servant of the Belgian tax authorities submitting in your tax return.
  • July 15, 2022
    • if you submit your own tax return via Tax-on-web
    • if you ask for help from a tax consultant in amending your proposed simplified return
  • September 30, 2022
    • if your tax consultant files your tax return electronically, via Tax-on-web

Proposed simplified return

This month about 3.800.000 proposed simplified returns will be sent. In such proposed simplified return, you will find a simulation of your Belgian tax liability, based on the data that the Belgian tax authorities have in their files.

If you receive a proposed simplified return and you agree to it, you no further action is required, and your personal income tax return is final.

ATTENTION: you do need to carefully check your proposed simplified return. About 30% of the proposals of simplified tax returns are incorrect, mostly in your disadvantage! Mistakes often concern omissions of claiming tax reductions such as mortgage loans, gifts, dividends, child care etc.

If the information in your proposed simplified return is incorrect/incomplete, you need to correct/complete it. You can do this yourself until June 30, 2022, or you can ask a professional to amend the proposed simplified return. As a recognized tax consultant, we may amend your proposed simplified return until July 15, 2022. Of course, a tax claim may also be filed later on.

New tax rules

You are among the lucky ones if you:

  • had child care expenses. The maximum deductible amount has been increased to EUR 14/day;
  • are a formal ‘caregiver’, caring for a person in need of care aged 65 years or older. You will receive a supplement to your tax-free amount up to EUR 4.940;
  • are a private person having installed an intelligent charging station for electric cars at your home as of September 1, 2021. You can receive a tax credit for the expenses you paid.
  • are a business owner having invested in new, publicly accessible and intelligent charging stations for electric vehicles as of September 1, 2021. You can receive a new increased cost deduction for the investment;
  • are a Belgian athlete, having received allowances for your performance at the Olympic and Paralympic Games, European and World Championships or other continental championships. The first segment of EUR 50.040 (gross) of your received allowances is taxed at 16,50%;
  • invested in a small medium-sized enterprise located in the Flanders Region. You can receive a tax credit (this is an amount that is deducted from your taxable income) of 2,5% of the invested amount under certain conditions.

You own real estate abroad

In addition to registering your foreign property with the Belgian tax authorities, you must also report this property in your Belgian personal income tax return. Based on your former registration of your property abroad, you will receive a Belgian notional rental value (‘cadastral income’). You must report this Belgian notional rental value in your personal income tax return.

ATTENTION: The Belgian tax authorities are focusing this year on Belgian residents owning real estate abroad. Tax audits may be expected in this respect.

For more information on registering and reporting your foreign real estate to the Belgian tax authorities, we refer to our blog ‘Real estate abroad’.

Further digitalization

Starting this year – unlike previous years, it is possible to submit a tax return separately through Tax-on-web if you ‘de facto’ divorced in 2021.

Normally, when your situation changed from a ‘married’ to a ‘de facto divorced’ person in 2021, you need to submit a joint Belgian tax return. Since it is not always easy to manage this in practice, it was possible – provided a specific request was made – to submit a separate tax return on paper.

As of this year, submitting a separate tax return is also possible via Tax-on-web.

How can Mint Consult help?

As Belgian tax consultants, Mint Consult assists Belgian tax residents with their tax obligations and reporting formalities, such as:

  • submitting personal income tax returns
  • submitting non-resident tax returns
  • calculating your tax liability;
  • improve/complete a proposed simplified return;
  • reporting a real estate abroad;
  • advising on and structuring of international tax situations;
  • ……

Additional questions? Feel free to contact us.

Stay informed and follow our updates via Facebook and LinkedIn.

What to do when coming to Belgium live/work?

What to do when coming to Belgium live/work? We are happy to tell you all about it in our blog.

Immigration

Before departure (depending on nationality, duration and purpose of stay in Belgium)

Valid passport/identity card?

For EU nationals, this is usually sufficient.

Visa?

A visum is required if you are not an EU national. This provides permission to enter and stay in Belgium for a limited period in time. You should apply for this visa at the Belgian embassy or consulate of your country of residence 4 weeks before departure. Here you can find the correct address of the embassy.

Residence permit

If you are a non-EU national coming to Belgium for a longer period of time (after the visa expires), you must apply for a residence permit.

Work permit

For employees: apply for a WORK CARD (“arbeidskaart”) if you are a national of the European Economic Area or Switzerland. Depending on where you exercise your professional activity, you must apply in Flanders, Wallonia, the Brussels-Capital Region or the German-speaking part of Belgium.

For self-employed persons: apply for a PROFESSION CARD (“beroepskaart”) if you are not a national of the European Economic Area or Switzerland. Depending on where you exercise your professional activity, you must apply in Flanders, Wallonia or the Brussels-Capital Region.

Recognition of diplomas

The qualifications /diplomas you acquired abroad needs to be recognized in Belgium.

Upon arrival

Registering with the local commune

If you are a foreigner and wish to stay in Belgium for more than 3 months, you must register with the local commune where you have your actual residence within 8 days of your arrival. ATTENTION: When registering, it is important to register in the correct register:

  • in the civil register – for Belgian nationals;
  • in the foreigners’ register – for Belgian non-residents.

Appropriate registration may avoid problems with and questions of the Belgian tax authorities later in time.

Social Security

A correct social security analysis is crucial, especially in case of employment in different EU or other states. Within the EU, individual may only be subject to one social security system. It is important to determine the right one!

If you are seconded to Belgium or employed in different countries (including Belgium), it is important to check in which social security system you are required to contribute (in Belgium or another country) and to request the appropriate documentation (A1 or Certificate of Coverage).

As a self-employed person, it is also important to check in which social security system you have to contribute (in Belgium or another country) and to request the correct documentation (A1 or Certificate of Coverage). This may avoid surprises later on.

Taxes

Personal income tax, or non-resident tax

Depending on your tax status in Belgium, you need to file an annual tax return in Belgium:

  • As a Belgian resident, you have to declare your worldwide income (with potential exemption of foreign income);
  • If you are a Belgian non-resident taxpayer, you have to declare your Belgian source income.

ATTENTION: As a Belgian resident, you may receive a ‘proposal of simplified declaration’. You should carefully check this as it may be incorrect / incomplete.

Belgian expat status

If you move to Belgium for professional purposes, you may, under certain conditions, benefit from the new Belgian expat status for incoming taxpayers (BBIB). The application of this status can reduce your Belgian tax liability.

How can Mint Consult help?

  • analyzing, applying and if necessary regularizing Belgian social security;
  • advising and structuring international tax situations;
  • reporting foreign (bank) accounts to the National Bank of Belgium;
  • reporting on foreign real estate in Belgium;
  • communications with the Belgian tax administration in order to obtain the correct tax status;
  • preparing and filing your personal income tax return (as a national resident);
  • preparing and filing your non-resident tax return (as a non-resident);
  • calculating your Belgian tax liability;
  • rectification of your Belgian tax bill;

Additional questions? Feel free to contact us.

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Real estate abroad

Increased risk on Belgian tax audit

Belgian residents owning real estate abroad, a villa, house, apartment, chalet, land or any other real estate may be questioned by the Belgian tax authorities this year. The Belgian tax authorities recently confirmed this to ‘De Tijd’.

After Belgium was convicted three times by the European Court of Justice for discrimination between Belgian real estate and real estate abroad, a solution was found by assigning a Belgian ‘cadastral income’ (‘notional rental value’) to all foreign real estate.

Based on a one-time notification of each foreign real estate (owned by a Belgian tax resident), the Belgian tax authorities have assigned a ‘notional rental value’ to all real estate abroad. This notional rental value is important to determine the taxable income of the foreign real estate and must be declared annually in the Belgian personal income tax. Meanwhile, (the value of) this foreign real estate is also known by the Belgian tax administration and will be considered for the calculation of inheritance taxes.

What is the notional rental value?

A ‘notional rental value’ is a fictitious net rental income that is assigned to each real estate (buildings and land) by the tax authorities. It gives an indication of the value of the real estate and is used in the calculation of personal income tax, as well as real estate prelevy (‘onroerende voorheffing’ / ‘precompte immobilier’).

The ‘notional rental value’ corresponds to the net rental income of the real estate determined on 01/01/1975. To determine the current value, this notional rental value is annually indexed.

Notification real estate abroad

Belgian resident

The Law of February 17, 2021 aims to levy income taxes on foreign real estate in the same manner as Belgian real estate. To enable this, the tax authorities will assign a ‘notional rental value’ for each real estate abroad.

Belgian resident taxpayers who own, usufructuary, emphyteusis, superficies or possess a house, apartment, building, land… abroad must therefore report this real estate.

  • If it concerns real estate abroad owned on January 1, 2021, the reporting deadline was December 31, 2021.
  • If it concerns real estate abroad acquired after January 1, 2021, this real estate must be reported within 4 months of acquisition.

In case foreign real estate not (timely) reported, a penalty or fine of €250 to €3.000 may be applied.

This mandatory reporting will enable the tax authorities to determine the notional rental value per foreign real estate (to be consulted via Tax-on-Web). In case of non-agreement with the determined notified notional rental value, a formal objection may be filed within 2 months following the notification.

New Belgian resident

The notification of foreign real estate also applies to individuals who move to Belgium (become a Belgian residents) and own real estate abroad.
These Belgian tax residents must voluntary report this foreign real estate within 30 days following the first day of the taxable period in which they become subject to the Belgian personal income tax.

Tax return of income from real estate abroad

Belgian residents with real estate abroad are required to annually include the income from this foreign real estate in their Belgian personal income tax.

How to complete your tax return?

Purpose Revenues to be declared
Land not rented/rented for private use Non-indexed notional rental value
Land rented for professional purpose/to a company Actual rent received and non-indexed notional rental value
Real estate not rented Non-indexed notional rental value
Real estate rented for private use Non-indexed notional rental value
Real estate rented for professional use/to a company Actual rent received and non-indexed notional rental value

Completing the Belgian tax return becomes more complex when during the taxable period:

  • The foreign real estate had different purposes;
  • The foreign real estate was purchased;
  • The foreign real estate has been re-build;
  • Several Belgian residents are owners, usufructuaries, emphyteusis, superficies or possessors of the foreign real estate…

In addition to completing the non-indexed notional rental value and the actual rent received, it is also required to provide the country where the real estate is located.

Depending on the country where the foreign real estate is located, there may be a tax treaty between Belgium and the country concerned. If the foreign real estate is located in a country with whom Belgium:

  • has tax treaty, then the income of the foreign real estate will be exempt from the Belgian personal income tax (exemption with progression reserve);
  • has no tax treaty, then a tax reduction of 50% will be applied for the income of the foreign real estate.

Impact of the ‘progression reserve’ on your taxes?

In your tax calculation, the Belgian tax authorities will take into account the taxable income of your foreign real estate to determine the tax rate on your Belgian income. In other words, this foreign real estate income is ‘exempt with application of progression clause’. As a result, the overall impact of the declaration of the income of foreign real estate is limited.

How can Mint Consult help?

As Belgian tax consultants, Mint Consult assists Belgian tax residents and new Belgian tax residents with their Belgian tax obligations and reporting formalities, such as:

  • Reporting a real estate abroad;
  • Calculate/recalculate the notional rental value;
  • File a tax objection against the allocated notional rental value;
  • Completing Belgian tax returns;
  • Calculate tax due/tax refund;
  • Advising on and structuring international tax situations;
  • ….

Additional questions? Feel free to contact us.

Stay informed and follow our updates via Facebook and LinkedIn.