Tax Insights

As announced in our December 2021 Tax Insights, following the agreement on the federal budget, the Belgian government has decided to adapt the existing special tax regime for foreign executives with a new tax regime effective January 1st, 2022. A transition period has been established for taxpayers who benefit(ed) from the old regime.

On November 9, 2021, Belgium and France concluded a new double tax treaty (hereinafter: "the new treaty"). The old treaty - still in force at the moment - is one of the oldest treaties concluded by Belgium (1964) (hereinafter: "the old treaty"). The new treaty revises the old one on a few points, including the lump-sum foreign tax.

Since January 1st 2022, the scope of the VAT exemption for (para)medical cares has been amended. End of 2021, the Ministry of Finance has published extended guidelines (Circular Letter 2021/C/144 of 20 December 2021) in which tolerances are also foreseen to give practitioners time to comply with their new VAT obligations.

6% VAT on re-construction Extended beyond 2022 and to include victims of flooding VAT certificate abolished

As a consequence of the federal budget agreement, the Belgian government has decided to adapt the existing special tax regime for foreign executives with a new tax regime that will enter into force on January 1, 2022. Please note that this new regime still must be submitted to the Belgian Parliament who can still make adjustments to the changes mentioned below.

The costs made by an employee who travels within Belgium for professional purposes, can - with due respect of the conditions - be compensated by the employer on a lump sum basis.

As from January 1st 2022 the material and personal scope of the VAT exemption related to medical services will change significantly.  What does this mean in practice? 

As every year, the Belgian tax authorities have issued guidelines on the preparation and the deadline for submitting the 281.50 forms relating to certain expenses incurred by companies and self-employed persons established in Belgium. The deadline is 29 June 2021 for the 2020 income (tax year 2021).

After the entry into force of the Royal Decree of 23 September 2020 amending the Royal Decree of 30 July 2018 on the operating modalities of the UBO register, it is now mandatory to upload every document in the UBO register that shows that the information in the register is adequate, accurate and up-to-date.

In the context of the current COVID crisis, the government has taken a number of VAT measures to give companies the necessary breathing space and to promote liquidity. An overview follows. 

With the upcoming new VAT rules for e-commerce entering into force in all EU Member States as from 1st July 2021, the registration for the new OSS returns in Belgium is open as from 1 April 2021. 

The Brussels Region offers support to companies from certain sectors that were obliged to close on November 2, 2020 due to the corona crisis. To be able to claim the premium, certain conditions must be met.

Since the start of the Covid-19 pandemic last year, working from home has become the ‘new normal’ for many employees. When working from home, the employee incurs a number of costs for setting up or using a home office, for electricity and heating or in some cases for using his own computer for professional purposes.

By 31 March 2021, certain actions need to be taken from a VAT perspective. We list these here below.

In order to deal with the financial and economic difficulties faced by Belgian companies in the context of the COVID-19 pandemic, the federal government adopted a series of support measures to promote the liquidity and solvency of companies and the self-employed in Belgium. 

On February 11, 2021, the plenary session of the House of Representatives approved a draft law that will put an end to the unequal treatment of rental income from foreign real estate. Belgium has already been condemned for this by the European Court of Justice.

The non-recurring result-tied benefit is a collective bonus related to the achievement of certain objectives which are obviously uncertain at the time of implementation of the bonus plan.

The implementation of the Belgian UBO register has been a saga of many twists and turns. The deadline for the registration of the information in the UBO register was postponed three times and the FAQ’s published by the tax authorities was updated several times. However, there are still a lot of technical problems with the UBO platform.

The Belgian tax administration will determine the notional rental value or so-called cadastral income of foreign real estate properties that are rented out by Belgian residents.

On October 15th, 2020, the Belgian Court of Cassation, the highest court in our country, ruled for the second time that the double taxation of French dividends is not in accordance with the law. Currently, the Belgian tax authorities impose a tax of 30 % on net French dividends received by individuals considered to be resident in Belgium for tax purposes.

The Council of Ministers reached a new agreement on the application of the reduced VAT rate of 6% to the demolition and reconstruction of private dwellings.

With the  Act of 15 July 2020 containing various tax measures with respect to the COVID-19 pandemic, also known as “Corona Law no° 3”, the Belgian federal Parliament decided to adopt several tax measures in order to soften the impact of the COVID-19 crisis on our business activity and economy.

Since the abolishment of the monthly VAT advance payments, all taxable persons filling VAT returns in Belgium had to pay a December VAT advance ultimately 24 December, if their Q3/November VAT return results in a payable position. The advance payment is in principle equal to the VAT payable resulting from the Q3/November VAT return.

The Coronavirus crisis is having a considerable impact on the Belgian economy. Many companies are on the verge of bankruptcy while others are struggling to turn their financial situation around.

During the summer holidays, it can often be difficult for businesses to ensure proper monitoring of their VAT obligations. 

The spread of the coronavirus has a far-reaching impact on business and society all over the world. Countries have taken extensive measures to fight this virus. As several of these measures entail countries closing their borders, international business has become very difficult, if not impossible.

The spread of the coronavirus has a far-reaching impact on business and society all over the world. Countries have taken extensive measures in order to fight this virus. As several of these measures entail countries closing their borders, international business travel has become very difficult, if not impossible.

Hereby, we would like to inform you about some new support measures introduced by the Belgian tax administration in the context of the Corona crisis.

Assessment year 2019

Hereby, we would like to inform you about some new support measures introduced by the Belgian tax administration in the context of the Corona crisis. On 5 May 2020, the Belgian tax administration provided for a temporary reduction in the VAT rate for hand grips and mouth masks (Royal Decree 5 May 2020, Circular 2020/C/65). 

In the wake of the Coronavirus pandemic, Belgian federal and regional authorities launched a series of measures aimed at softening the financial impact of the crisis, providing companies some well-needed breathing room in the form of various tax filing and payment deadline extensions.  

The spread of the coronavirus has a far-reaching impact on business and society all over the world. Countries have taken extensive measures in order to fight this virus. As several of these measures entail countries closing their borders, international business travel has become very difficult, if not impossible.

Each years, companies have to report on individual forms 281.50 the amount of commissions, brokerage, fees, trade rebates, vacation allowances, fees, gratuities, allowances or benefits in kind paid or attributed during the year and which are considered as taxable professional income for the beneficiary in Belgium or abroad.

1. WHAT?  In addition to the various domestic options to avoid liquidity problems in the area of VAT (accelerated refund, conversion from monthly to quarterly returns or vice versa, etc.), the refund of foreign VAT is often overlooked. 

The spread of the coronavirus has a far-reaching impact on business and society all over the world. Countries have taken extensive measures in order to fight this virus. As several of these measures entail countries closing their borders, international business travel has become very difficult, if not impossible.

Due to the current COVID-19 outbreak (coronavirus), several support measures were put into place, and this on a federal, as well as on a regional level. 

The measures which have been imposed during the last weeks with regards to COVID-19 (coronavirus), have without a doubt an economic impact on your company. 

We would like to inform you about the further support measures introduced by the Belgian tax administration for all VAT taxable persons in the context of the Corona crisis.

In response to the Corona crisis, the Belgian federal government has taken some new fiscal measures in order to support and promote solidarity. These new measures relate to both VAT and income tax, and remain in force until 30 June 2020. In the meantime, a Circular Letter regarding these measures has already been published by the tax authorities.

Every day lots of events are being cancelled or postponed across the world, due to the spread of COVID-19 virus. For the organisers, the cancellation of an event means a financial setback, so it might be worth for them to try and recover VAT wherever possible.

We would like to inform you that the Belgian VAT and corporate income tax authorities have introduced supporting measures for all companies in response to the Corona crisis. Note that no action is required from your side in order to obtain these extensions.

As a result of the measures taken by the Belgian government regarding the spread of the coronavirus, you may have a number of questions regarding possible absence of employees and/or payment difficulties.

On January 23rd, 2020, the Constitutional Court of Belgium annulled the legislation dd. March 30th, 2018 concerning the mobility allowance or so-called ‘cash for car’. This law entered into force on January 1st, 2018 and provides the possibility to an employee to return his company car in exchange for a cash mobility allowance.

In general, it is not required anymore to pay VAT advances. An exception to this general rule remains the VAT advance to be paid during the month of December.

All businesses with operations and transactions across the European Union (EU) are required to comply with EU VAT rules and regulations.  Businesses that, directly or through subsidiary operations, are involved in the movement of goods across EU borders will be impacted by these upcoming changes.

On May 1st, 2019, the new Code of Companies and Associations (hereinafter, « CCA ») entered into force. As mentioned in our previous Tax Insight from June 2019, the Belgian legislator planned a gradual application of the new Code for existing companies (i.e. companies existing before May 1st, 2019).

Belgian legal entities including non-profit organizations, foundations and trusts ought to submit accurate and up-to-date information about their ultimate beneficial owners in the UBO (Ultimate Beneficial Owner)-Register for the first time before 30 September 2019. In a recent press release the FPS Finance announced a grace period until 31 December 2019.

A no-deal Brexit on 31 October 2019 remains one of the possibilities.  We therefore want to draw your attention to the actions that should be taken to be ready for a no-deal Brexit.  

Corporate Tax Reform – Modification of the closing date of the financial year New circular  

1. What? Taxable persons often incur foreign VAT during an accounting year. This foreign VAT cannot be recovered via the reporting in the periodic Belgian VAT return but is to be recovered via the so-called 8th Directive VAT refund procedure.

The transfer pricing documentation obligation was introduced by the Program Law of 1 July 2016 and is in line with the three-tiered approach (country-by-country report, master file and local file) of the BEPS (Base Erosion and Profit Shifting) Action 13 project. These obligations are required for accounting periods beginning on  1 January 2016.

On 28 February 2019, the Belgian Parliament approved the draft law introducing the new Code of Companies and Associations. The Law of 23 March 2019, introducing this substantial reform of Belgian company and association law, has been published in the Belgian Official Gazette on 4 April 2019.

Each years, companies have to report on individual forms 281.50 the amount of commissions, brokerage, fees, trade rebates, vacation allowances, fees, gratuities, allowances or benefits in kind paid or attributed during the year and which are considered as taxable professional income for the beneficiary.

In the Tax Insight of August 2018, we already mentioned the introduction of a reporting and withholding obligation in case foreign group companies grant shares and benefits in kind to employees of the Belgian subsidiary.

On 4 April 2019, the Chamber of Representatives adopted the proposal eliminating the separate taxation of 5% for non-compliance with the minimum director’s fee condition. Article 219quinquies BITC92 would therefore be retroactively removed from the Belgian Income Tax Code as if the separate taxation of 5% never existed.

As a “no-deal” Brexit becomes a more and more realistic possibility, the Belgian VAT Authorities have announced a transitional regime regarding the change from a “direct VAT registration” into a VAT registration via the appointment of an individual fiscal representative.

The deadline for the first submissions by Belgian companies, (international) nonprofit organizations, foundations and trusts of information concerning their beneficial owner(s) to the UBO-Register (“Central register of ultimate beneficial owners”) has been extended. The deadline has been postponed from 31 March to 31 September 2019.

Most likely, the UK will leave the EU without a deal on 29 March 2019, at 11pm GMT. Although there is still a lot of uncertainty, we hereby provide you with some action points which should be taken before this date (in any event).

In order to mitigate the discussions regarding the required proof (of transport) of VAT exempt intra-Community supplies of goods, uniform requirements throughout the EU will be effective as from 1  January 2020.

On 30 July 2018, the federal government adopted a new Act (published on 10 August 2018 in the Belgian Official Gazette) which adapts some of the measures established by the Law of 25 December 2017 reforming Belgian corporate income tax.

RSM Belgium informs you All vouchers issued after 31 December 2018, will be subject to a new VAT regime, as determined by Directive 2016/1065/ EU.  Although this Directive has not yet been transposed into the Belgian VAT legislation, we hereby provide you with the key elements.  

In the context of anti-money laundering legislation, the Belgian Act of 18 September 2017 implementing the fourth anti-money laundering directive (Directive 2015/849 of the European Parliament and the Council of 20 Mei 2015) planned the constitution of the “ultimate beneficial owners” Register (so-called “UBO Register”).

The Belgian social security authorities have changed their administrative instructions last month: when a foreign mother company grants shares to employees of the Belgian subsidiary, Belgian social security contributions are due.  

The costs for meals made by an employee who travels within Belgium for professional purposes, can - with due respect of the conditions - be compensated by the employer on a lump sum basis.

The costs for meals, beverage, local transport, tips and other small expenditures on site made by an employee who travels abroad for professional purposes, can - with due respect of the conditions - be compensated by the employer on a lump sum basis.

During the latest budgetary discussions, the Belgian government has decided to introduce a reporting and withholding obligation in case foreign group companies grant shares and benefits in kind to employees of the Belgian subsidiary.  

RSM Belgium informs you According to the Minister of Finance, VAT fines are often too stringent not only in terms of the amounts, but also because the nature of the offence is not (always) taken into consideration. Hence, the Minister has instructed his administration to develop a new policy to deal with this problem.

At the end of last month, the Belgian government approved a legislative proposal for the implementation of a mobility budget as from October 1st, 2018. This mobility budget can serve as an alternative for the company car. Employees can return their company car in exchange for an annual budget which they can freely spend on sustainable mobility.

We inform you that there will be some modifications to the Intrastat returns due to the European reform. The Intrastat dispatches return will include two additional fields: - the country of origin of the goods; - the counterparty’s VAT identification number.

1. What? Taxable persons often incur foreign VAT during an accounting year. This foreign VAT cannot be recovered via the reporting in the periodic Belgian VAT return but is to be recovered via the so-called 8th Directive VAT refund procedure.

The Belgian Federal Government has re-launched the VAT reform regarding immovable leasing. Scope (B2B):  

Most of the measures announced by the 2017 Belgian summer agreement were finally adopted in the Law of 25 December 2017 on the reform of corporation income tax (as published in the Belgian Gazette on 29 December 2017).

New: the profit premium

A law is being drafted that will substantially expand the Central Point of Contact founded in 2011 with the Belgian National Bank. 1. Current status

The Belgian tax administration has, on the 28th November 2017, stated that a delay is granted for the filing of the Country-by-Country Report, Country-by-Country notification, Master file and Local file, that have to be done by Belgian constitutive entities (ultimate parent entity, for the country-by-country report) of multinational group and for which, the due dat

As from this year, VAT taxable persons filing quarterly VAT returns must, just like those filing monthly VAT returns, verify if they should pay a VAT December advance before 24 December. This December advance payment equals:  

As from 1 January 2018, the benefits in kind subjected to social security contributions and withholding tax related to the private use of company provided IT-equipment free of charge will be updated.

Ultimately at the end of November 2018 paper invoices will no longer be accepted by federal government institutions. All invoices to governmental institutions must be issued electronically.

New VAT exemption procedure On 19 July 2017, the Belgian government has published the new procedure regarding the VAT exemption for diplomatic missions.

Totally unexpected, after the meeting of the core cabinet last weekend, the Belgian government has abandoned the long awaited optional regime applying VAT to immovable letting for business purposes.

Measures taken in the summer agreement of 26 July 2017 Corporate Income Tax Rate:

Tax changes further to Program Law of 25 December 2016 Other tax changes applicable as from 1st January 2017 Measures and changes expected in 2017 Should you want any further information on these new tax measures, please feel free to contact RSM Intertax.   Read our Tax Insight :

Obligation to perform prepayments for quarterly taxpayers New rules applicable as from April 1, 2017   If you would like to receive additional information on this matter or VAT assistance, the tax team of RSM Belgium is at your disposal.   Read our Tax Insight :

As from 9 January 2017, the EORI identification is also required to perform import of goods. If you would like to receive additional information on this matter or an assistance to prepare the EORI identification request, the Tax team of RSM Belgium is at your disposal. Read our Tax Insight :

As from 1 January 2017, the fees of directors of companies, irrespective of whether the director is a company or a physical person are subject to VAT in Luxembourg...

More equality between the lump sum amounts for costs proper to the employer Lump sum cost allowance part of salary? Amount of the cost allowance Double use

VAT consequences of the entry into force of the new Union Customs Code (Decision E.T. 129.169 dd. May 20, 2016) As from now, the intracommunity supplies of goods can be demonstrated with a « destination document » (Decision E.T. 129.460 dd. July 1, 2016) Conditions

The Transfer pricing documentation becomes a legal obligation in Belgium Which companies? Drafting the Master File ... and local file Penalties Entry into force Do SMEs escape?

The impact of BEPS on the patent income deduction – new measures are being drafted Background Transitional provision Entry into force   Discover our Tax Insight :

Global businesses expect 5% effective tax rate increase from new taxation rules   Read our Tax Insight:

Legal persons acting as director or liquidator of companies Aesthetic procedures and treatments Abuse of distance sales  

Special Topic : Base Erosion and Profit Shifting BEPS refers to tax planning strategies that exploit  gaps and mismatches in tax rules of various countries to artificially shift profits to low or no-tax locations where there is little or no economic activity, resulting in little or no overall corporate tax being paid.  

Belgian tax authorities announce that they will impose fines in case of late submission of fee forms Filing obligation Penalties in case of non-compliance with the reporting obligation  

NEW TAX PROVISIONS 2015 Through this new Tax Alert we would like to inform you on the new provisions regarding corporate income tax and VAT that enter into force in Belgium in 2015.  

Please find attached our RSM newsalert of the recent proposed changes to the Dutch work-related costs scheme proposed by the Dutch government in July 2014. The final changes shall be published on Budget Day in September 2014. This newsalert highlights the most important items of the proposed changes to the work-related costs scheme.   Way forward

INTRODUCTION OF A NEW PROVISION IN THE TAXATION OF NON-RESIDENTS