Brexit is a global issue — see how KPMG can support your Brexit plans. KPMG is committed to providing long term support to our clients as they tackle challenges. Our insurance practice comprises multi-disciplinary teams, led by senior partners with extensive experience. Our global insight and guidance on the key changes to IFRS are now available. The online rates tool compares corporate, indirect, individual income, and social security rates. Highlights from KPMG's participation in the World Economic Forum Annual Meeting in Davos. Value belgium Audit - Dialogue with Investors: ICGN Kuala Lumpur, 12 July If you are like many companies, you may be altering your business strategy and processes. KPMG is a global network of professional firms providing Audit, Tax and Advisory services. Later dates may apply when filing electronically. The exact dates are determined by the tax authorities each year and can vary. All individuals resident in Belgium and non-resident individuals taxed on Belgian-sourced income are required to file an annual tax return. The government, in principle, issues a tax return form to each taxpayer. For residents, their filings are due within one month after receipt of the tax form from the tax authorities and, in principle, at the latest on 30 June of the year following the income year. Resident taxpayers must obtain the necessary forms from the Ministry of Finance if they have not received them by 1 June. Resident taxpayers can opt to file their return electronically. In principle, Belgian law provides that the employers deduct a withholding tax from salaries payable to employees as determined by prescribed tax tables. The difference between the final tax liability and the withholding is payable or refundable within two months after receipt of the tax assessment. The tax assessment is, in principle, issued before 30 June two years following the income year. Persons who are married or legally living together are required to file their tax return jointly except for the year of marriage, year of declaration of legal cohabitation, or if they are living separately. Spouses and legally cohabiting partners are taxed separately on all income. This allocation is limited to "EUR 10," on an annual basis in Income of minor children is reported on the tax return of the parents as long as they are living with their parents, unless it is business income or alimony. For non-residents the filing deadline is, in principle, 30 September of the year following the income year. Non-resident taxpayers must also obtain the necessary forms from the Ministry of Finance, if they have not received them in time. Non-resident taxpayers can also opt to file their return electronically. In specific factual circumstances there is no obligation to deduct withholding tax on the salaries paid to non-residents. This allocation, as well as federal standard personal allowances and federal tax credits, only applies for taxpayers that have at least 75 percent of their worldwide income taxable in Belgium or taxpayers that are able to claim partial exemptions based on a tax treaty. What are the current income tax rates for residents and non-residents in Belgium? Income tax is calculated by applying a progressive tax rate schedule to taxable income. The rates are as follows:. Furthermore, the Belgian taxes calculated on the total amount of personal allowances see below will be deducted from the total amount of taxes. For the purposes of taxation, how is an individual defined as a resident of Belgium? Persons registered in the Civil Register are presumed to be resident, unless the contrary is proven. Persons are irrevocably presumed to be resident of Belgium when their family lives in Belgium. Foreign nationals qualifying for the expatriate special income tax regime are deemed to be non-residents for income tax purposes. Is there, a de minimus number of days rule when it comes to residency start and end date? In principle, a resident individual must file a final tax return within three months of departure. The residence situation should, however, be analyzed taking into account the Belgian residence rules such as family situation. Do the immigration authorities in Belgium provide information to the local taxation authorities regarding when a person enters or leaves Belgium? This information is available for the Belgian tax authorities. In practice, this implies that the individual automatically receives a Belgian income tax return form from the Belgian tax authorities. Will an assignee have a filing requirement in the host country after they leave the country and repatriate? If the assignee receives compensation deferred payments, bonus, and so on related to the assignment in Belgium that is considered as taxable in Belgium, there will be a filing requirement. If any outstanding tax liability related to the Belgian assignment is paid by the employer afterwards, this payment will be considered as a taxable benefit on behalf of the individual which will trigger a filing requirement. Do the taxation authorities in Belgium adopt the economic employer approach to interpreting Article 15 of the OECD treaty? If no, are the taxation authorities in Belgium considering the adoption of this interpretation of economic employer in the future? The interpretation of the Belgian tax authorities of the notion employer in the framework of Article 15 of the double taxation treaties concluded by Belgium is outlined in Administrative Circular nr. In the circular, the authorities follow the current interpretation of Belgian jurisprudence. According to the circular, the relationship between the employee and the employer is characterized by the existence of a link of subordination between the employer and the employee. The tax authorities are thus adopting the economic employer approach. Various circumstances should be taken into account to determine the possible existence of a link of subordination and they are in line with the Commentary on Article 15 of the OECD model tax treaty. Are there a de minimus number of days before the local taxation authorities will apply the economic employer approach? If yes, what is the de minimus number of days? Belgian residents options taxed on their worldwide earned and passive income. Non-residents are taxed only on their Belgian-sourced income. Employment income is taxable when received or, when the employee is entitled to receive it, whichever occurs earlier. Employment income is subject to tax to the extent it was earned during a period of Belgium residence, or in the case of income earned while non-resident to the extent it was earned in respect of duties performed in Belgium. Are there any areas of income that are exempt from taxation in Belgium? If so, please provide a general definition of these areas. Tax-exempt income, regularly granted by the Belgian employer, includes meal vouchers, representation allowances, and daily expense allowances. Please refer also to the section of tax-exempt income under the Belgian expatriate special income tax regime. The employee may qualify for a favorable tax status. Qualification for the expatriate special income tax regime is not automatic, but requires the filing of a special application request by both the employer and expatriate employee within six months from the first day of the month following the start of employment or secondment to Belgium. It should be clearly shown that the four qualifying conditions have been met. Furthermore, the expatriate will only be assessed according to graduated tax rates on remuneration for work actually performed in Belgium and on other Belgian-sourced income excluding movable income but including income from Belgian real property. Under the Belgian expatriate special income tax regime, some so-called expatriate allowances such as tax equalization, cost-of-living differential, housing differential, and home leave allowance are treated as a reimbursement of extra expenses that are properly borne by the employer, rather than by the employee and are, therefore, not taxable to the individual employee. A distinction is made between non-repetitive expenses and repetitive expenses. The excludable portion of repetitive expenses is limited to EUR 11, per year, for expatriate personnel employed by operating companies, and to EUR 29, per year, for expatriate personnel employed by controlling and coordinating offices or research centers. However, education expenses, even though considered repetitive costs, as well as non-repetitive expenses, may be excluded without limit. However, the actual allowance paid only qualifies for exclusion to the extent permitted by prescribed guidelines. The excludable cost of education in Belgium includes tuition and registration fees, local transport, and other expenses imposed by the school, but exclude boarding expenses food and lodging and the cost of tax lessons. With respect to education costs abroad, the excludable portion of education expenses incurred outside Belgium shall be determined on a case-by-case basis. For the calculation of the hypothetical regional tax, taxpayers are deemed to be resident in the capital of their home country. Social security charges do not, therefore, form part of the tax equalization concept and reimbursement of such taxes may not be excluded. Lump-sum allowances or reimbursements of moving expenses that can not be justified with invoices always are to be considered as taxable in the hands of the employee. Under the Belgian expatriate special income tax regime, first arrival costs duly justified with invoices are to be considered as costs proper to the employer no ceiling applicable under certain conditions. For residents, salary earned from working abroad should be reported and might be exempted with progression depending on the applicable double tax treaty. The tax authorities have provided precise rules for determining days worked outside of Belgium. Resident and non-residents taxpayers are taxable on capital gains realized on assets used for business purposes. Capital gains realized on land and buildings held for private purposes are taxable to resident and non-residents taxpayers under certain conditions. Capital gains realized on portfolio investments or other personal property held for private purposes are not taxable for residents and non-residents, provided they result from the normal management of private wealth and, for portfolio investments, provided such capital gains do not result from the sale of substantial participations. The capital gains resulting from the sale of substantial participations between two residents or between a resident and a non-resident, located within the European Economic Area EEAare free of taxation. On the other hand, capital gains resulting from such a transaction between a resident and a non-resident outside of the European Economic Area are taxable. Individuals benefiting from the expatriate special income tax regime are subject to these rules stock non-residents, which means that the rules only apply to Belgian-source capital gains. Other income taxable to residents and non-residents to the extent it is Belgian-sourced income includes miscellaneous profits and a widely defined range of other sources including prizes and subsidies. Resident taxpayers are taxable on dividend income from a Belgian or foreign-source. However, it is not compulsory for individual resident taxpayers to report dividend income provided it has been subject to Belgian withholding tax, which in most cases is 30 percent. Non-resident taxpayers, including foreign nationals living in Belgium who benefit from the expatriate special income tax regime, are subject to Belgian income tax on Belgian-sourced dividends. Also, when such individuals have foreign dividends remitted directly to Belgian bank accounts, some tax treaties permit Belgium to withhold tax. Interests accrued on a regulated savings account are tax-free up to EUR 1, per taxpayer. Above this amount they are subject to a 15 percent withholding and final tax rate. Resident taxpayers are taxed on income from real property located both in Belgium and abroad. The income of real property abroad can in most cases be exempt with progression depending on the application of a double tax treaty. Income tax is levied on the basis of the net rental income after deduction of a standard allowance. Non-resident taxpayers are taxed on income from real property located in Belgium on the same basis as residents. However, foreign real property income is exempt to non-residents. The principal residence located in the EEA is, in many cases, free of personal income tax. Mortgage loans concluded with a bank situated in the EEA for the acquisition of an immovable property located in the Stock may give right to tax savings in Belgium. Please note that the moment of taxation of stock options in Belgium depends on various circumstances stock option plan, date of grant, and so on. Residents who make gifts of real or personal property are subject to gift taxes. For some types of gifts, it is possible to avoid gift tax. The applicable rule with respect to gift tax and gift tax rates depends on the region of Belgium where the individual is living. Are there additional capital gains tax CGT issues in Belgium? If so, please discuss? There is no specific separated capital gains tax in Belgium. Some capital gains are taxed within the income tax regime. Are there capital gains tax exceptions in Belgium? For example, Pay-As-You-Earn PAYEPay-As-You-Go PAYGand so on. Income taxes are, in principle, withheld by the employer on a regular basis. The final tax payment should be made within two months of the date of the final tax assessment. It is also possible to make quarterly estimated tax payments during the income year to reduce the final tax payment. Quarterly estimated tax payments give rise to a tax credit reducing the amount of tax due for the year. The tax credit will depend on the date of the payment the earlier the payment, the higher the credit. The basis for determining these quarterly estimated tax payments is the estimated tax liability on projected taxable income less applicable withholding taxes and tax credits. The amount of income tax withholding, if applicable, is determined in accordance to special withholding tax tables. In case a withholding tax obligation exists, the employer should deduct withholding tax from the wages and transfer the withheld tax to the Belgian tax authorities by the 15th of the month following the payment of wages at the latest. Tax prepayments should be made before the following dates during the income year in order to be creditable for the respective quarters: Is there any relief for foriegn taxes in Belgium? For example, a foreign tax credit FTC system, double taxation treaties, and so on? In the event a specific double tax treaty has not been concluded, unilateral rules have been provided to reduce the burden of double taxation. These are described as follows. A reduction by 50 percent of the Belgian income tax levied on foreign property income, income from personal services, and certain types of miscellaneous income, such as speculative income and alimony. A foreign tax credit is available for income derived from capital investments and movable property used for business purposes in Belgium and subject in the foreign country to a tax similar to the Belgian income tax. However, there are important restrictions. No credit for actual foreign taxes paid on other income is available under Belgian domestic law, but foreign taxes are deductible against taxable income. Tax treaties concluded by Belgium alleviate the tax burden in Belgium on certain foreign income received by resident taxpayers. Generally, with respect to personal property income, the taxpayer is entitled to a foreign tax credit referred to above and with respect to income other than personal property income, an exemption is provided. The exempt income may be taken into account in determining the rate of tax on Belgian-sourced income exemption with progression method. The use of split compensation arrangements may therefore prove favorable provided the foreign rate of taxation is lower than the Belgian one. Only the net amount of earnings derived from abroad, after deduction of the foreign taxes, is taken into account for determining the rate of taxation to be applied to the income derived from a Belgian source. What are the general tax credits that may be claimed in Belgium? There are a variety of tax credits available, each with their own specific rules of application, calculations and limitations. The most common are:. This calculation assumes a married taxpayer non-resident in Belgium with two children whose three-year assignment begins 1 January and ends 31 December In this case, Article 15 relief would be denied and the employee would be subject to tax in the host country. Tax rates are checked regularly by KPMG member firms; however, tax confirm tax rates with the country's tax authority before using them to make business decisions. KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. Insights Industries Services Events KPMG Capital Careers Alumni Media Social About Contact. Select KPMG member firm site and language Global English View all KPMG sites and languages. TaxNewsFlash Taxation of international executives IFRS News Frontiers in Finance Taxation of cross-border mergers and acquisitions All insights. Article 50 triggered Brexit is a global issue — see how KPMG can support your Brexit plans. Disrupt and grow Global CEO Outlook. Financial Services Energy Banking and Capital Markets Private Equity Real Estate All industries. Healthcare KPMG is committed to providing long term support to our clients as they tackle challenges. Insurance Our insurance practice comprises multi-disciplinary teams, led by senior partners with extensive experience. Tax rates online The online rates tool compares corporate, indirect, individual income, and social security rates. World Economic Forum Highlights from KPMG's participation in the World Economic Forum Annual Meeting in Davos. Dialogue with Investors Value of Audit - Dialogue with Investors: Solutions for Clients If you are like many companies, you may be altering your business strategy and processes. Register Login Learn more Dashboard Library About MyKPMG Interests Profile Logout. Global English Select KPMG member firm site and language Global English View all KPMG sites and languages. Belgium - Income Tax Belgium - Income Tax Taxation of international executives. Tax returns and compliance When are tax returns due? That is, what is the tax return due date? What is the tax year-end? What are the compliance requirements for tax returns in Belgium? Residents For residents, their filings are due within one month after receipt of the tax form from the tax authorities and, in principle, at the latest on 30 June of the year following the income year. Non-residents For non-residents the filing deadline is, in principle, 30 September of the year following the income year. Tax rates What are the current income tax rates for residents and non-residents in Belgium? Residents and non-residents Income tax is calculated by applying a progressive tax rate schedule to taxable income. The rates are as follows: Personal allowances EUR Basic personal allowance 7, Personal allowance 1 child 1, Personal allowance 2 children 3, Personal allowance 3 children 8, Personal allowance 4 children 14, For every extra child 5, Extra allowance per child less than 3 years old if no deductions for actual child care expenses incurred are claimed Residence rules For the purposes of taxation, how is an individual defined as a resident of Belgium? What if the assignee enters the country before their assignment begins? The earlier-described residency rule will apply. Termination of residence Are there any tax compliance requirements when leaving Belgium? What if the assignee comes back for a trip after residency has terminated? The assignee will remain non-resident as long as the conditions of residence are not fulfilled. Communication between immigration and taxation authorities Do the immigration authorities in Belgium provide information to the local taxation authorities regarding when a person enters or leaves Belgium? Filing requirements Will an assignee have a filing requirement in the host country after they leave the country and repatriate? Economic employer approach Do the taxation authorities in Belgium adopt the economic employer approach to interpreting Article 15 of the OECD treaty? De minimus number of days Are there a de minimus number of days before the local taxation authorities will apply the economic employer approach? Types of taxable compensation What categories are subject to income tax in general situations? The following categories of income are subject to income tax: Dividends and interest are subject to a withholding tax which is generally the final tax. Tax-exempt income Are there any areas of income that are exempt from taxation in Belgium? Expatriate concessions Are there any concessions made for stock in Belgium? The expatriate must be a foreign national. The expatriate must be either an executive or a director of a company, or a researcher or a specialist. The expatriate must be a non-resident for Belgian income tax purposes. The Expatriate Tax Circular of 8 August lists a set of factual circumstances that are indicative of such a non-resident status. The expatriate must be temporarily employed tax Belgium by an employer that is part of an international group of companies. The following expenses are considered to be non-repetitive expenses. Moving costs on arriving in Belgium and on leaving Belgium. The cost of setting up a home in Belgium or other initial costs of first arrival in Belgium and decoration costs of a dwelling in Belgium. First arrival costs Under the Belgian expatriate special income tax regime, first arrival costs duly justified with invoices are to be considered as costs proper to the employer no ceiling applicable under certain conditions. Salary earned from working abroad Is salary earned from working abroad taxed in Belgium? Taxation of investment income and capital gains Are investment income and capital gains taxed in Belgium? Dividends, interest, and rental income Dividends Resident taxpayers are taxable on dividend income from a Belgian or foreign-source. Interest Interests accrued on a regulated savings account are tax-free up to EUR 1, per taxpayer. Most other interests accrued in Belgium are subject to a 30 percent tax rate. Rental income Resident taxpayers are taxed on income from real property located both in Belgium and abroad. Gains from stock option exercises Residency status Taxable at: Foreign exchange gains and losses Foreign exchange gains and losses are, in principle, not taxable or tax deductible. Principal residence gains and losses Principal residence gains and losses are, in principle, not taxable or tax deductible. Capital losses Capital losses are, in principle, not tax deductible. Gifts Residents who make gifts of real or personal property are subject to gift taxes. Additional capital gains tax CGT issues and exceptions Are there additional capital gains tax CGT issues in Belgium? Short term capital losses are options tax deductible. General deductions from income What are the general deductions from income allowed in Belgium? The following items of expenditure may be deducted from the income. Belgian or foreign compulsory social security payments are deductible for income tax purposes. A standard business deduction is computed on employment income as follows. For directors board members and equivalentthe standard business deduction is 3 percent with a maximum deduction of EUR 2, If the actual business expenses exceed the standard business deduction, the actual expenses may be deducted. Tax reimbursement methods What are the tax reimbursement methods generally used by employers in Belgium? The following are the normal methods of recognizing tax reimbursements paid by the employer: Relief for foreign taxes Is there any relief for foriegn taxes in Belgium? General tax credits What are the general tax credits that may be claimed in Belgium? The options common are: Sample tax calculation This calculation assumes a married taxpayer non-resident in Belgium with two children whose three-year assignment begins 1 January and ends 31 December Other assumptions All earned income is attributable to local sources. Bonuses are paid at the end of each tax year, and accrue evenly throughout the year. Interest income is not remitted to Belgium. The employee is deemed non-resident throughout the assignment. Tax treaties and totalization agreements are ignored for the purpose of this calculation. Application of Belgian expatriate special income tax regime including 25 percent of foreign belgium travel and tax-free allowances limited to EUR 11, Annual rent paid by the expatriate amounts to EUR 24, Application of Belgian social security contributions. Interest income is not remitted in Belgium. Domestic tax rebates dependent spouse rebate 4, Connect with us Find office locations kpmg. KPMG's new digital belgium KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content. By using this website, you agree to the use of cookies as outlined in KPMG's online privacy statement. Extra allowance per child less than 3 years old if no deductions for actual child care expenses incurred are claimed. Base deduction for income below bracket EUR. Rate of deduction of income in bracket.
There he ordered them cut to pieces, watching impassively as his sons and other followers did the work. (He seems to have executed one man, James Doyle, himself.) Five men were murdered in this manner.
In his 2007 book Beautiful Evidence, Tufte introduced what he called sparklines, numerically dense, word-size graphics that show variation over time.
There he ordered them cut to pieces, watching impassively as his sons and other followers did the work. (He seems to have executed one man, James Doyle, himself.) Five men were murdered in this manner.