Taxes in Belgium, Taxation in Belgium, Taxes system in Belgium
Taxation in Belgium is divided into direct and indirect taxation.
Direct taxes are:
- Income tax on individuals,
- Income tax on companies, including:
- Taxation of dividends
- Preferential taxation of small and medium-sized enterprises
- Preferential taxation of distribution centers
- Income tax, corporation
- Property tax and land tax (cadastral)
Indirect taxes include m.in:
- Value added tax VAT
- Excise duty
- Inheritance Tax,
- Tax on the purchase of means of transport and tonnage tax,
- Notarial fees for the sale of real estate (droit d'enregistrement)
- Charge an entry in the books and records of judicial mortgage
The relations between the Polish, and Belgium, the Convention between the Republic of Polish, and the Kingdom of Belgium ws. avoidance of double taxation and prevent tax evasion and tax evasion with respect to taxes on income and capital of 20.08.2001, published in Poland (Journal of Laws of 2004 No 211 item. 2139) and Belgium (Moniteur Belge 27.04.2004, No. 2004015054).
The Convention applies to taxes on income, wealth, regardless of the manner of their collection, the taxes paid in Belgium, and Poland. In Belgium, it includes the income tax from individuals, companies income tax, income tax and corporation income tax non-residents. The Convention applies to situations where the taxpayer, in addition to taxable income earned in Poland, for example, also receives income from sources in Belgium.
The Convention between the Polish and Belgium to the elimination of double taxation method was proportional deduction. It consists in the fact that income earned abroad (ie in Belgium) is taxed in Poland, but the tax due shall be deducted the tax paid abroad. The deduction is available only to the amount of tax chargeable in proportion to income earned in Belgium.
For more information on avoidance of double taxation metdo used in the agreements signed by Poland with various countries to be found on the website of the Ministry of Finance on the 'taxes' (http://www.mf.gov.pl/).
TAX ON INCOME FROM INDIVIDUALS IN BELGIUM
Natural persons resident in Belgium so are loaded. unlimited tax liability. Most of the income subject was added to the total tax base, to whom the progressive tax rates.
Certain categories of income such as dividends and certain other taxable in a separate mode, unless favorable to the taxpayer is the aggregate of the whole tax revenue. Revenue spouses are combined to a joint settlement of income tax
The total income subject to taxation shall include:
- Income from property
- Remuneration from employment,
- Income from business (self).
These types of income are taxed after deductions (excluding the proceeds of real estate) costs of obtaining revenues specific to the type of activities carried out by the taxpayer. With regard to the management staff is entitled to a deduction of 5% of gross income (not more than 3110 €).
Deductions related to the type of business
Any tax deductions must be related to the activity. Deductions shall be based on documented costs incurred. The amount of the deduction is limited and is, respectively,
- 75% of the expenditure on transport equipment (expenditures on fuel and maintenance costs are deducted in full)
- Other than the expenditure for transport from home to place of employment (in this case, the deduction is subject to the equivalent of 0.15 € / km)
- 69% of the expenditure incurred on meals in restaurants,
- 50% of expenditure on entertainment.
Standard deduction of expenses deductible costs
These deductions are allowed only if the taxpayer does not benefit from the deductions related to the type of business. Standard deduction from taxable income for employees and self-employed for 2005:
- 25% of gross revenues to the amount of the first € 4,660,
- 10% of the excess of gross income between 4,660 € and 9,270 €,
- 5% of the excess of gross income between 9,270 € and 15,420 €,
- 3% of gross less than 15,420 €.
The total deduction for the cost of obtaining income can not exceed 3110 €.
Other deductions relate to payments for life insurance, mortgage payments, group insurance, investments in listed shares, certain donations, the cost of maintaining close family members and spouses who are separated, etc.
PRZYKŁADOWE tax rates from individuals The Belgian IN 2007:
REVENUE IN EURO
0.01 - 7 290.00
7 290.01 - 10 380.00
10 380.01 - 17 300.00
17 300.01 - 31 700.00
Over 31 700.01
This rate does not include the additional municipal tax or agglomerate (6%), nor the amounts exempt from tax.
Amounts exempt from tax
Per taxpayer the amount exempt from tax is € 5,780. This amount shall be increased depending on the number of children who are dependents of the taxpayer. The tax exemption for a family in which there is a disabled child is counted twice. From 2005 onwards, the amount of exemptions are the same for spouses, for singles and couples create legal relations.
Rates of tax exemptions for children:
NUMBER OF CHILDREN
1 EUR 230.00
3 EUR 160.00
7 EUR 080.00
11 450,00 EUR
Each additional child (4)
4 EUR 370.00
Taxes are a function of the amount of municipal taxes on personal income and depending on the commune (city) of residence varies between 0% and 10%. Foreign Taxpayers pay extra tax of 7%.
Other principles of income taxation in Belgium
Other tax rates in Belgium are subject to capital income and royalties, which are taxed at 15%. Most tax conventions concluded by Belgium provide an exemption from deduction of withholding tax on copyright. Belgium applies to the directive on copyright and ensuring equity income from their tax exemption in the case of related companies in Europe.
Exempt from tax revenue from certain Belgian bonds. Podlegają to withholding tax dividends natomiast. Taxation according to the standard tax rate is 25%. In the case of certain dividends (eg SICAV, SICAF, CIS), the rate is reduced to 15%.
TAX ON INCOME FROM COMPANIES
The amount of the tax rate
Rate of corporation tax, which is equivalent to the Polish corporate tax corporate income, is 33%. Businesses whose taxable income does not exceed the amount of € 323,750.00, are covered by a more favorable form of progressive tax.
Progressive tax bands:
- 24.98% for income from 0 to € 25,000.00
- 31.93% for income from 25,000.01 to 90,000.00 €
- 33.99% for income from 90,000.01 to 323,750.00 €
Businesses subject to the reduced tax rate may also benefit from a tax credit for a cash capital increase contributed to the level of the highest in the last three years of account (7.5% of the maximum amount of € 19,850.00).
Entities debarred tax credit:
- Finance companies
- Coordination centers,
- Collective savings funds,
- Companies whose dividend payments exceed 13% of the capital contributed at the beginning of the fiscal year.
Other tax rates include:
- Belgian Office for Economy and Agriculture (21.5%);
- Companies trading of local and regional federations or trade of such firms, which are entitled to loans for the purpose of Handicrafts (5%);
- Selected the Flemish, Walloon and Brussels public institutions that grant loans for the purchase or development of social facilities, small housing estate or similar (5%).
Tax reductions and exemptions
To encourage an increase in own funds samozatrudniający (indépendant) and those representing small and medium-sized enterprises (SMEs) can obtain a tax credit. In the case of corporation tax the tax credit is 7.5% of the difference between capital contributed cash in the previous year and the highest level of capital at the end of the taxation.
The possibility of lowering the tax base for each year as determined amount for each employee nowozatrudnionego SMEs is one of the instruments conducive to raising the level of employment.
Investment Deductions are granted liberal professions, conducting agricultural production and trade activities. Investment deduction for real estate investment concern for the professional activity (whether tangible or intangible goods acquired or created - new) in the tax period.
The types of expenses included in deductible costs
Costs are earning not only the actual expenditure and costs, but also costs in nature, and accounted for as some claim or loss. Claims differs from some dubious claim, since the latter depend on future events and uncertainties. Doubtful receivables may be included in estimates of tax exemptions, but can not be deducted as an expense for income (it will be possible only when these costs are actually incurred). Failing on accounting records of income the cost of obtaining a standard rate can be determined with a common administration and agreements between taxable person. If such an agreement is not reached, the administration assesses the expenses or fees.
Costs of obtaining revenue, which is deductible from the tax include:
- Staff salaries and related costs (including additional life insurance, staff, and a partial reimbursement of travel),
- Insurance premiums for the risks borne by the taxpayer in respect of their professional work,
- Costs of rent and fees associated with the costs of operating the building or premises on which business is carried on a professional (maintenance, heating, electricity, etc.)
- The cost of "financial", ie, interest on borrowed capital, and any charges allocated to current operating activities,
- Commissions and fees, shopping discounts and other fees, gratuities, fees and any expenses, which means for the recipient of income or profits of a professional,
- Cost of car:
a) substantiated by the appropriate document (cost of car maintenance, insurance, depreciation, maintenance and repairs)
b) flat rate: the cost of fuel based on the number of kilometers traveled.
Costs of obtaining revenue for the use of cars, personal-luggage and minibuses are deducted of 75% of the cost. Cost of a car operated to travel abroad shall be deducted in full. The costs associated with installation and use of mobile phones, as well as its depreciation, are revenue costs of extraction, which can not be reduced to 75%. These costs are fully tax deductible and are not treated as expenses of the car.
- The cost of travel from home to work by car (own, rented or owned by your employer or your company) in a lump sum for 1 km course. When the car is owned by the taxpayer or is continuously operated under lease or rental of a lump sum may also be granted taxpayer's spouse or child, provided that use it to commute from home to work.
- For employers travel expenses are deductible in full, provided that their conduct in the records of the vehicle. The benefits that arise from the use of official cars for private purposes, are loaded solidarity contribution of 33%, entirely at the expense of the employer. Other travel costs are deductible expenses in the amount of 75%.
Corporation tax in Belgium is different from the Polish corporate tax, since it is levied, inter alia, on corporate income generated by the rental property and the proceeds obtained from their capital. In the case of non-resident legal persons in Belgium is used for income tax of legal persons for non-residents.
Land tax payers in Belgium are the owners and users of real estate. The basis for the calculation of this tax is called. cadastral income, which is the average revenue, year built and the property undeveloped, and the means of production to the nature or destination of the nature of the property.
The reference period for calculating serving cadastral income for all real estate is 1 January 1975 Since 1991, cadastral tax is subject to annual indexation in line with inflation (for 20,005, the rate was 1.3889). Land taxes in Belgium are engaged in areas of fiscal administration, and payment for the supply of their budgets of municipalities, provinces and regions. Cadastral tax rates are set by regional authorities and vary depending on the location of the property. The average rate of tax is approximately 50% of the cadastral tax computed as of the 01/01/1975
Exemption from land tax are used in relation to public property, public property (schools, hospitals). In addition, there is the possibility of a temporary exemption from land tax, for economic reasons (eg in case of suspension of operation of the property). Discounts also apply to disabled persons and persons with disabilities.
People who own property are not serving the purpose of this professional pay tax for individuals. The basis of assessment of that tax revenue is the cadastral value of the tenancy or, less the lump-sum allowance equivalent to the cost of borrowing and credit for land tax paid. Income and real property are included in the total income tax paid personal income. People with a larger number of properties either pay land tax and tax on individuals in respect of income from the property.
The basic rate of value added tax (VAT) in Belgium is 21%. Additionally there are reduced rates of 12%, 6% and 0%. The rate of 6% fall in primary products, including food, medicines, water, books and magazines, agricultural products, transport services, repairs. The rate of 12% are covered by such charges for coal, broadcasting fees, housing, margarine, diapers for adults. 0% reduced rate applies to exported goods and daily newspapers.
VAT returns are submitted monthly or quarterly. There is a possibility of transferring overpaid tax for the next period, and when the overpayment amount exceeds € 1,500 for its return.
Excise duty in Belgium are laden cigarettes, cigars and other tobacco products, alcoholic beverages and some soft drinks and coffee, fuel, oil, petroleum, natural gas, propane, butane and other energy products.