Personal Income Tax System of Belgium

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The Country Belgium imposes taxes on its residents on their global income, without any regard to their nationality. The inhabitants of Belgium are taxed on their global income, while non-residents are only taxed on Belgian-source income. Personal income tax (PIT) is ascertained by determining the tax base and assessing the tax due on that base. The taxes are levied on a sliding scale to succeeding portions of net taxable income. For 2021 income year, the federal tax rate ranges from nil to 50 percent after the deduction of social security charges and professional expenses are: –

Taxable income            Rate (%)  Tax on bracket    Cumulative tax

Over             Not over

0                   13,540          25                 3,385                 3,385

13,540          23,900          40                 4,144                  7,529

23,900          41,360          45                 7,857                  15,386

41,360 and above `           50

*Note: All amounts are in EURO

Categories of Taxable Income

Real Estate Revenues

  • No income tax on personal housing (in addition to a property tax
  • Private rental, fixed revenue based on RCI
  • Indexed cadastral revenues  * 1,40
  • Professional rental, real revenues – 40% limited to RCI * 2/3 * RCI * 4,23
  • Interest is deductible

Professional Revenues

  • From your activity as employee, director, self employed, retired
  • Add non-monetary benefits (car, accommodation, heating, meals)
  • Deduct your professional expenses
  • Prepayment is due for self employed, withholding tax for employees and directors

Capital Gains

  • Dividends or Interests
  • In Belgium or abroad without withholding tax
  • Principle: 27% in 2016
  • Not reportable
  • Interesting exceptions: authors rights(15% limited), corporate liquidation bonus
  • No taxation on private capital gains obtained from stocks sales

Diverse Revenues

  • Other sources
  • Occasionally, not from a professional activity
  • Commissions, unique gains

Deductible expenses

  • Professional expenses
  • Family discounts
  • Specific private expenses (lodgment loans, housekeeper, charities, post divorce pension)

Due Dates

  • Per Calendar year (January through December)
  • Tax return to be filed by June 30 or October through CPA
  • Administration to calculate by June 30 of the following year