Individuals whose tax residence is in Flanders will be eligible, subject to certain conditions, for an annual tax credit of EUR 125 in income year 2007 and EUR 150 in income year 2008. Eligibility for this tax break is subject to the taxpayer deriving yearly active income ranging from EUR 5.500 to EUR 22.250 (income year 2007) or 22.500 EUR (income year 2008).

Active income means taxable earned income after deduction of: 1/ pension income, 2/ allowances in lieu of a temporary loss of income and 3/ earned income subject to tax at a separate rate (e.g. severance pay, early holiday pay, some capital gains,…).

The aforesaid limits are computed per taxpayer. This is to say that the maximum tax credit available in the case of a joint filing (e.g. married couple) might amount to EUR 250 (income year 2007) or EUR 300 (income year 2008). In the event that the level of active income exceeds EUR 21.000 per annum, the tax credit will be reduced by 10% of this excess.

Source: Belgian Official Gazette – 26 September 2006 (pp 50042-50043)
Link: http://news.hrservices.be?lk200609271