belgian tax on savings

This issue had been partially solved thanks to the publication of a practice note of 25 October 2013 where the tax authorities opted for a “regulatory” interpretation to assess the “in” or “out of scope” character of a fund. Program Law of 25 December 2017: no, only UCITS-like before 2018. This interpretation took effect as from 1 July 2016. The tax rate amounts to 33.99 percent. A reduced tax rate of 15% applies to any amount exceeding the threshold. It should also be noted that the practice note clarifies how donations of funds units within the scope as from 1 January 2018 are to be treated. Sales Tax Rate in Belgium is expected to reach 21.00 percent by the end of 2020, according to Trading Economics global macro models and analysts expectations. Since 1 January 2018 for a Belgian citizen, capital gains realised on shares or units of capitalising collective investment funds investing more than 10% of their assets in debt claims are subject to a withholding tax of 30%. 3 (1) of the Act of 3 August 2012, placing the funds they collect in one of the asset classes referred to in art. The tax system in Belgium distinguishes between resident and non-resident taxpayers when it comes to determining what income is subject to taxation. The tax year in Belgium is the same as the calendar year – 1st January to 31st December). Currently in Belgium, interest on savings accounts is tax-free up to an amount of €990.00 per person per year (tax year 2021). The tax authorities considered that the following were in scope of the BTS (free translation), “the undertakings for collective investments as defined in art. In such case, the statute of limitations is set at 5 years. In a country where 15% of all income earned by families in 2013 was transferred to savings accounts ("Regulated Savings Accounts"), the tax rules applicable to such income is a hot topic. Interest from savings deposits Under Belgian law interest on regulated savings accounts is exempt from personal income tax up to a threshold of (currently) €990, Article 21, first paragraph, 5°, ITC 92). As is already known, the Belgian Tax on Savings Income ( “BTS” ), also referred to as the Reynders Tax, (the main provision of which being “art. If the account is in the joint name of a married or cohabitating couple, the exemption is doubled to €1,980 per year. Taxpayers in Belgium are currently exempt from withholding tax for the first tranche of interest income earned from savings accounts, up to a maximum of EUR1,880 (USD2,572). • Interest pertaining to regulated savings deposits, except on the initial non-taxable amount (= no WT) of interest of 1,880 euros per year and per taxpayer liable to personal income tax in Belgium. Interest and dividends paid out and collected via a Belgian financial institution are, in principle, subject to a flat-rate tax of 30%. €640 of annual dividend income. 19bis BITC): Important Practice Note, Tax challenges arising from the digitalisation of the economy/Global anti-base erosion (GloBE), Tax controversy and dispute resolution (TCDR), Indirect taxes & other taxes or tax measures, Belgian Tax on Savings Income (art. Hello Mr.FF, I moved to Belgium recently and need to start investing again. 19bis BITC): important clarification from the Minister of Finance for certain AIFs, Royal Decree of 8 May 2018: Private Pricafs get a boost, Circular 2020/C/96 on the taxable basis of foreign movable income, New measures for open-ended public undertakings for collective investment against the consequences of the COVID-19 epidemic. A “tax base by default” applies otherwise. Tax revenue stood at 48% GDP in 2012. These tax declarations must be completed, then returned, before the due dates on the tax declaration form - usually the 30th of June for residents and the 30th of September for non-residents. That’s why you can decide to receive updates only for the issues that matter most to you. The exemption allows you to reclaim this 30% (or €192) previously withheld on max. Before 2018, these funds were thus out of scope. Parliamentary Question: the Minister of Finances confirms. If that is the case, you don't have to declare the interest or dividends in your tax return, but foreign banks d… These are normally taxed at source; the (Belgian) bank or the company that pays the dividend deducts 30% tax when they pay out. As in many other countries, employees' income tax (often referred to as salary tax) is deducted at source by their employers, i.e. In a country where 15% of all income earned by families in 2013 was transferred to savings accounts ("Regulated Savings Accounts"), the tax rules applicable to such income is a hot topic. dividends and interest. In an addendum of 8 April 2016 (FR/NL), the Belgian tax authorities announced that (free translation) “regarding the understanding of the concept of UCITS, a generalisation is required in order to favour an equal treatment of all funds, regardless of their legal form and of how they are offered to investors” so that the “category of funds” is not relevant anymore. In the long-term, the Belgium Sales Tax Rate - VAT is projected to trend around 21.00 percent in 2021, according to our econometric models. Belgian Tax on Savings Income: Scope Enlarged, Tax challenges arising from the digitalisation of the economy/Global anti-base erosion (GloBE), Tax controversy and dispute resolution (TCDR), Indirect taxes & other taxes or tax measures, Belgian Tax on Savings Income (art. Belgian Tax on Savings Income even though the text of Article 19bis ITC remains the same. As a recall, the Belgian Tax on Savings Income (“BTSI”), also referred to as the Reynders Tax, (the main provision of which being “art. © 2016 - var dteNow = new Date(); var intYear = dteNow.getFullYear(); document.write(intYear); PwC. • Interest pertaining to “Leterme” government bonds”. The good news is if you are paying income tax in Belgium, there are various exclusions and exemptions available to prevent you paying tax on the same income to the IRS too. The Belgian tax authorities have provided certain clarifications and examples of the new NID regime in Circular 2020/C/22 (Dutch | French). Tax Base. Since the Act of 30 July 2013, the BTS applies to any undertaking for collective investment in transferable securities (“UCITS”) regardless of whether or not they have the EU passport. 7 (1) 1° or 2°, Act of 3 August 2012, namely: Other types of undertakings for collective investments such as private equity funds were considered out of scope. Belgian Tax on Savings Income (art. Property owners may also find themselves liable for the likes of property tax, gift tax, and inheritance tax. A “tax base by default” applies otherwise. Capital Gains Tax. However, in the absence of any definition of “UCITS” in tax law, the exact range of funds falling within the scope of the BTS was debated. Belgian tax on savings income. There are a number of taxes related to residential properties in Belgium, including VAT, cadastral income, and local taxes related to inhabiting the home, that will depend on the region, province or district of the property. The complete texts of the following tax treaty documents are available in Adobe PDF format. Strangely enough, the Belgian tax authorities based their new interpretation on the changes to the European Savings Directive provided by Directive 2014/48/EU (although never implemented in Belgian law, never applied, made superfluous by Directive 2014/107/EU and finally repealed by Directive 2015/2060/EU) and on the changes brought to the regulatory framework by the Act of 19 April 2014 (although the asset classes listed above were essentially moved from one legislation to another). This issue had been partially solved since the publication of the practice note of 25 October 2013. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. The investment reserve regime is being phased out, by limiting the possibility to constitute such reserve for taxable periods ending at the latest on 30 December 2018. The new administrative position is based on the new European Savings Directive. Household Saving Rate in Belgium increased to 19.10 percent in the first quarter of 2020 from 12.80 percent in the fourth quarter of 2019. the asset composition (> 25% of assets invested in debts pursuant to the “Belgian Asset Test”); commodities, options and futures on commodities; options and futures on securities, currencies and equity index contracts; claims by third parties and transferred to the undertaking for collective investment through a transfer agreement in accordance with the terms and conditions established by Royal Decree; financial instruments issued by unlisted companies; other investments authorised by Royal Decree. This law change – and this is important – is applicable to income paid or attributed in relation to units acquired as from 1st January 2018. In the first EUR 812 find the full results here that is current correct! Gift tax, gift tax, gift tax, gift tax, and every effort has been to! 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