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General Information
| Taxation (Belgium) |
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of the Belgian tax system can be found at the Your
Europe web site. Income tax: For tax purposes, it is important to distinguish between residents and non-residents of Belgium. The residence of the taxpayer and the “seat of wealth” are two alternative criteria used to determine whether an individual is a Belgian resident. The “seat of wealth” can be described as the location from which the owner manages parts of his capital. The residence is the location where the individual is actually and permanently residing. People with their fiscal residence outside Belgium (the non-residents) are subject to Belgian tax in relation to their Belgian-sourced income only. The following text details the regulations in accordance with the
income tax as applicable for the fiscal year 2004, income 2003. In Belgium, income is divided in the following 4 categories:
In principle, all these taxes are added up and are subject to income tax, with the exclusion of moveable property income and certain specific ‘various income’ and several professional income items. Property income is income derived form the possession of buildings and real estate. Estate (wealth, property) income is income based on capital, i.e. interest on cash certificates and bonds and dividends paid on stock. Various income refers to all categories of income not covered elsewhere. Professional income is all income derived from professional activities (as a self-employed person or as an employee) and all income derived as a compensation for income from employment. Professional expenses may be deducted from the professional income. For a family, deductible expenses will be divided proportionally between both partners in accordance with the level of their income. For each family there art two tax assessments, the husband’s and the wife’s. These will be subject to separate income tax. Please note that individuals living together on a non-married basis will be considered as two single individuals for tax purposes. Scales of wages of income tax (year 2000)
For a single person, the personal tax allowance is the first bracket of € 5570,00. For a family, the personal tax allowance for each spouse is € 4610,00. There are a variety of tax allowances available relating to children, and to insurance and other items. II. Non-residents
Non-residents are divided into five categories. See http://www.fiscus.fgov.be under “non-resident income tax” For all categories of non-residents the scale of wages for income tax will apply as for nationals. For non-residents with living accommodation, taxes will be levied in the same manner as for nationals. The deductions available to the different categories of non-residents are complex, and further advice should be obtained.
The specific legislation on “foreign executives” in Belgium Ci RH 624/325.294 of 8 August 1983: This specific legislation decrees that foreign executives who are temporarily stationed in Belgium will be subject to the Belgian tax for non-residents, but will be entitled to certain deductible expenses. It applies only to individuals of foreign nationality who fill positions requiring specific skill, knowledge and responsibility. These foreign executives must be employed by organisations of an international nature, and must work within a Belgian office of an international organisation or in a Belgian organisation which is part of an international group. In these cases, tax allowances are made in respect of certain expenses relating to relocation. There are a wide variety of these deductible expenses, and those who are covered by this law should seek further advice.
For further information, you can consult the websites of the Ministry of Finance: or you can contact:
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Tel: +32 2 2240731 -- E-mail: gina.ebner@eurocadres.org
