Context

Earned and real estate income are taxed at graduated rates ranging from 25% to 52% (to be increased by local tax and crisis tax). However Belgian resident taxpayers and certain non-resident taxpayers benefit from tax free quotas. Such quotas depend on the taxpayer’s marital status and on the number of dependent persons who form part of his household. Dependent persons are the taxpayer’s children, his ascendants, his first or second collaterals and the persons who had principal or exclusive charge of the taxpayer during his childhood, provided however that their net resources do not exceed certain thresholds.

News

Some of these thresholds have just been increased for income year 2002. Here are the new indexed thresholds applicable to such net resources*. Above such thresholds, the person may no longer qualify as dependent for Belgian income tax purposes.

Income year 2001
for married taxpayers: EUR 1.960 per dependant person
for single taxpayers:
EUR 3.390 for each dependant child
EUR 3.920 per dependant disabled child
EUR 1.960 for each other dependant persons

Income year 2002
for married taxpayers: EUR 2.410 per dependant person
for single taxpayers:
EUR 3.480 for each dependant child (increase only due to the indexation)
EUR 4.420 per dependant disabled child
EUR 2.410 for each other dependant persons

*the net amount of resources is calculated as the gross amount less the costs incurred during the taxable period to acquire or preserve such resources. The deductible costs are fixed at 20% of the gross amount unless supporting documents can be provided.

Reference: Belgian Official Gazette of 20 July 2002