The Expatriate Tax Circular of 8 August 1983 lists a set of factual circumstances that are indicative of such a non-resident status. All individuals resident in Belgium and non-resident individuals taxed on Belgian-sourced income are required to file an annual tax return. To be clear, the child must be under 17 at the end of the year to claim the credit. You should claim your child benefit in the country where you work because this is the place where you pay your taxes and where you are socially insured. The final tax payment should be made within 2 months of the date of the final tax assessment. Persons are irrevocably presumed to be resident of Belgium when their family lives in Belgium. Are there any concessions made for expatriates in Belgium? Some capital gains are taxed within the income tax regime. Education expenses (duly justified with invoices) for the expatriate’s children in primary or secondary schools, while repetitive in nature, are expenses that can be excluded in addition to the maximum amounts mentioned above. Application of Belgian expatriate special income tax regime (including 25 percent of foreign business travel and tax-free allowances limited to EUR11,250). The maximum standard business deduction for employees is EUR4,880. Are the staffing levels always maintained? CVBA/SCRL civile) and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Social Security number: You, your spouse and all qualifying children or relatives you claim on your tax … Tax equalization has been defined to include the difference between Belgium income tax and the hypothetical home country/jurisdiction federal/national, as well as other sub-federal/national level income taxes (also referred to as regional taxes) that the expatriate would have incurred if living at home. In principle, Belgian law provides that the employers deduct a withholding tax from salaries payable to employees as determined by prescribed tax tables. Confirmation is sent in the seventh month of pregnancy. If a person does not have their family home in Belgium, they will be considered as a resident if the place from where they manage their personal wealth/business/occupation is located in Belgium. We want to ensure that you are kept up to date with any changes and as such would ask that you take a moment to review the changes. Is it clean? The tricky thing about the EITC is that you need to earn a relatively low … There is a tax deduction of up to EUR 11.20 per day. There is a comprehensive system of crèches, playgroups, and kindergartens in Belgium for working parents. The principal residence located in the EEA is, in many cases, free of personal income tax. They are cheaper than official childcare centres. (This allocation is limited to EUR11,090 on an annual basis in 2020). Some expats may be surprised at the young age Belgian parents enroll their children in crèches (public nursery schools) and playgroups. The current limited deduction of prior-year losses in the framework of a tax-neutral reorganisation also applies to the carried forward dividends-received deduction. Box VIIis for the income of your investments, i.e. The employee may qualify for a favorable tax status. Non-residents are taxed in Belgium on their Belgian-sourced income only. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. Interest income is not remitted in Belgium. Earned Income Tax Credit (EIC) Child tax credits; Unemployment Income reported on a 1099-G; 100% Accurate Calculations Guarantee: If you pay an IRS or state penalty or interest because of a TurboTax … Personal income tax rates. Belgian residents are taxed on their worldwide earned and passive income. What does the cost of the crèche cover? If you are in the 15% bracke t, this could save you $607.50, and those in the 25% bracket could save $1012.50. Generally, with respect to personal property income, the taxpayer is entitled to a foreign tax credit referred to above and with respect to income other than personal property income, an exemption is provided. KPMG International Cooperative (“KPMG International”) is a Swiss entity. For non-residents the filing deadline is, in principle, 30 September of the year following the income year. Persons registered in the Civil Register are presumed to be resident, unless the contrary is proven. If yes, what is the de minimus number of days? These organisations also have a library of books, mainly in French and Dutch but some in English and German, on childcare. Children start primary school at age six. The cost of setting up a home in Belgium or other initial costs of first arrival in Belgium and decoration costs of a dwelling in Belgium. Do they cater for special dietary requirements? The crèches are open throughout the year, usually from 7 a.m. to 6 p.m. (depending on local working hours), except on weekends and national holidays. Are there any areas of income that are exempt from taxation in Belgium? Notional interest deduction (NID) Belgian CIT payers can claim NID for tax purposes, reflecting the economic cost of the use of capital, equal to the cost of long-term, risk‑free financing. Depending on the fact that the taxpayer is resident of another EER member state (not including Belgium), they will be able to claim (partial) regional tax credits too. Resident taxpayers are taxed on income from real property located both in Belgium and abroad. member of the Board of Directors in a group company situated in Belgium) trigger a personal tax liability in Belgium, even though no separate director's fee/remuneration is paid for their duties as a board member? 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