by Julie Vantomme and Els Van Eenhooge
The new personal income tax return form for the 2022 assessment year (2021 tax year) was published in the Belgian Official Gazette of 28 March 2022. The number of codes has increased once more. More specifically, while 34 codes were scrapped, 44 new ones have been added. The majority of these new codes relate to various COVID-19 measures. Below is an overview of several noteworthy new codes.
The personal details and family situation field has been changed in response to the stricter rules for tax-free allowances. As from the 2022 assessment year, the allowance for dependent ascendants and siblings over 65 years of age will only be granted if that person is ‘care dependent’, for instance.
Income from foreign properties will be determined in the same way as for properties within Belgium from now on. To that end, the authorities sent out a questionnaire requiring a separate declaration of the cadastral income for foreign properties last year.
The tax return for the 2022 assessment year also includes the tax exemption for additional voluntary overtime, such as so-called ‘restart hours’, that went into force last year. Relatedly, we also note a temporary increase in the amount of overtime required to qualify for an overtime allowance, which has risen from 130 to 180 overtime hours insofar as this overtime took place in the second half of 2021.
Another coronavirus measure affecting the new tax return form relates to the bridging right for the self-employed. The EUR 598.81 one-time (gross) premium for self-employed individuals who received “at least six months of payments” due to bridging rights between 1 October 2020 and 30 April 2021 will be taxed separately at 16.5%, unless aggregation proves more beneficial.
We also note broader exemptions for certain types of foreign income. A specific ‘zero rate’ has been introduced for income from treaty countries that would normally be taxed separately in Belgium, but is exempt due to these treaties. As a result, this category of income exemption will not be subject to a progression clause.
The tax reductions field has undergone quite a few changes as well:
Various changes relating to tax credits have also been implemented:
Would you like to find out if you qualify for additional tax reductions or credits? Need help preparing your tax return? Please do not hesitate to contact one of our experts by means of the form below.
Julie Vantomme
Certified Tax Advisor julie.vantomme@vdl.be
Els Van Eenhooge
Partner Tax els.vaneenhooge@vdl.be
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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