Personal income tax, Act on various measures
On 6 April 2012, the program law of 29 March containing amendments and clarifications of the measures introduced by the Act of 28 December 2011, was published.
The personal income tax provisions recorded in this recent act concern, amongst other things, company cars. The act confirms the proposed changes in the valuation of used cars, i.e. the catalogue value of the company car can be depreciated by 6% on each anniversary of the date of the first registration of the car (with a minimum value equal to 70% of the original catalogue value). For withholding tax purposes, this calculation method will only apply as from 1 May 2012.
Posted: April 16th, 2012
New daily lump-sum allowances list as from 1 April 2012
Context
Reimbursements by the employer of expenses incurred by an employee within the scope of his employment are exempt from tax to the extent that they can be supported by appropriate documentation. The tax exemption of a lump-sum reimbursement of such expenses may also be allowed provided the lump-sum amount is determined based on reasonable criteria.
In this respect, daily lump-sum allowances paid in reimbursement of short-term business travel expenses abroad will be exempt from tax to the extent they do not exceed the daily lump sum allowances that are paid by the Federal Public Service Foreign Affairs to its civil servants while on mission abroad.
News
The new list of daily lump sum allowances applicable as from 1 April 2012 has been recently published in the Official Gazette and is available on our web site at the following address: http://www.hrservices.be/daily-lump-sum-allowances
Posted: April 10th, 2012
Additional municipal income tax
Income earned by a tax resident of Belgium in The Netherlands, Germany and/or France is exempted from Belgian income tax (be it with progression reserve). The exemption however only relates to federal tax and not to municipal taxes.
Therefore it is important to know on which basis the municipal tax is calculated: on the ‘net foreign source income’ (i.e. after deduction of foreign social security and income taxes) or on the gross amount.
In its decision of 11 May 2011, the Brussels Court of Appeal clearly stated that any municipal taxes due must be calculated on the ‘net foreign source income’.
Posted: March 19th, 2012
Compromise new provisions for pensions on the balance-sheet
As announced by the Government Agreement, pension commitments financed by provisions on the balance-sheet of companies would no longer be authorised. The management of these pension commitments should be outsourced to a pension institution (insurer or pension fund). As a reminder, there was up to now no obligation to outsource pension commitments set up for the benefit of (self employed) company officers (“mandataires sociaux/ sociale mandatarissen”), i.e. private individuals carrying out an office as a director, manager, liquidator or carrying out similar functions.
Nevertheless, it was not clear whether this outsourcing obligation would also apply to existing provisions for pensions on the balance-sheet. The obligation to outsource these provisions could have raised cash issues for some companies. Not all companies are in fact in a position to pay the premiums to the pension institution, together with the 4.4% tax on insurance operations normally payable on those premiums.
The Government seems to have become aware of these cash issues. A compromise seems to have been found, as indicated by the Finance Ministry, Steven Vanackere, on his internet site. The result of the compromise is detailed below:
- New provisions for pensions on the balance-sheet set up from 1st January 2012 must be outsourced and are hence liable to the 4.4% tax.
- Provisions for pensions on the balance-sheet set up before 1st January 2012 must not be outsourced. They will however be liable to a 1.75% tax (instead of 4.4%). The payment of the tax can be spread over 3 years with 3 instalments of 0.6%.
Posted: March 9th, 2012
Proactive announcement of specific tax audits
The Belgian tax authorities have decided to increase the number of tax audits on a yearly basis.
In a recent communication they have announced that they will mainly focus on the following items:
- internet sales
- employees claiming actual professional expenses
- company directors claiming actual professional expenses
- non-profit organisations that may be subject to corporate income tax
- sports clubs
- split-up of rights of ownership (usufruct of property)
- notional interest deduction (companies)
Posted: February 1st, 2012
Due dates for filing individual salary statements
The Belgian tax authorities have recently published the new models for individual salary statements 281.10 to 281.30 for income year 2011.
Please note that the due date for filing individual salary statements 281.10 to 281.30 has been set at 29 February 2012. The filing date for individual salary statement 281.50 and summary statement 325.50 remains unchanged, i.e. 30 June 2012.
Posted: January 31st, 2012
New changes in the taxation of company cars
As announced in our previous Headlines, the law containing various measures published in the Official Gazette on 30 December 2011 fundamentally changes the way of computing the taxable benefit in kind arising from the private use of a company car, effective 1 January 2012.
As explained, the yearly taxable benefit in kind will be computed as 6/7th of the car’s catalogue value (including VAT and options, but excluding any rebates or discounts) multiplied by a percentage linked to the car’s CO2 emission rate. In addition, the employer will be taxed on a new disallowed expense equal to 17% of this benefit in kind.
Last Tuesday night, the council of ministers approved a new programme law amending the above computation method of the benefit in kind for company cars. Under the new rules, effective later this year (the entry into force date is not yet known), the catalogue value would be depreciated by 6% on each anniversary of the date on which the car was first brought into use, with a minimum value equal to 70 % of the original catalogue value. For example, as of the third anniversary of the car, the taxable benefit in kind may be depreciated by 18%.
This new rule still has to be enacted to enter into force.
A tool to measure the personal impact of these new taxation rules on a company car is available at http://www.hrservices.be/new-2012-company-car-benefit-in-kind/
————————————-
More HRS headlines on www.hrservices.be
Posted: January 26th, 2012
New Belgian Personal Income Tax Measures – Update
On 30 December 2011, the Act of 28 December 2011 containing various (tax) measures was published in the Official Gazette. It contains some – but not all – of the measures announced by our government in December of last year.
The personal income tax provisions, recorded in this recent Act, concern:
- changes in the tax charge on interest and dividend income;
- new valuation method with regard to the taxation of the benefit in kind for the private use of ‘company cars’;
- major changes with regard to ‘expenses for energy savings’ in houses;
- increased valuation for the benefit in kind of stock options.
Most of the envisaged measures will come into force as from 1 January 2012.
You can find more information on our website: http://www.taxreform.be/
————————————-
More HRS headlines on www.hrservices.be
Privacy policy
Posted: January 4th, 2012
Urgent action may be required in the context of pension arrangements for self-employed company directors
Currently, all pension commitments need to be externalised except those for self-employed company directors. According to the Government Agreement of 30 November 2011, pension commitments for self-employed company directors will soon also need to be externalised to an insurance company or a pension fund. Balance sheet provisions for pension arrangements will therefore no longer be allowed.
This is also the case for so-called keyman insurance policies (‘Bedrijfsleidersverzekeringen’/ ‘Assurances Dirigeants d’Entreprises’) as the beneficiary thereof is the company itself, which in turn transfers the payout subject to the 80% rule to the company director in the context of a pension promise. Externalisation intends to shield the beneficiaries of the accrued benefits from bankruptcy of the organising company. Read more
————————————-
More HRS headlines on www.hrservices.be
Posted: December 12th, 2011
Tax on conversion of bearer securities
The Act of 14 December 2005 regarding the abolishment of bearer securities lays down that all bearer securities should be converted into dematerialised or registered securities before 31 December 2013 at the latest.
Posted: December 9th, 2011