Obligation to declare rental payments: form 270 MLH in Biztax

The regulation

The law of 28 December 2023, containing various tax provisions, has imposed an obligation on tenants of real estate and holders of a business use right on real estate to provide certain information through an annex to their tax return. Specifically, the following information must be provided, among other things: the identification details of the landlord, the location of the property, the amount of rent paid (including any rental benefits), and the portion of it claimed as a business expense.

If the taxpayer, as a tenant or holder of the business use right, fails to comply with this reporting obligation, the tax authorities may reject the deduction of the rental expenses paid. Additionally, the taxpayer may also face an administrative fine.

The regulation also explicitly provides exceptions to this reporting requirement and the associated penalties. For example, form 270 MLH is not mandatory when a valid invoice has been received from the landlord (or grantor of the business use right) within the EEA. There is also no mandatory reporting requirement for real estate rented under lease legislation and used for horticultural or agricultural purposes.

Practical considerations in Biztax

Due to technical limitations, the electronic form in Biztax deviates from the model form published in the Belgian Official Gazette (Moniteur belge) on 14 March 2024. There are also differences from the form used in the personal income tax return in Tax-on-Web.

• Unlike the situation with the personal income tax return (via Tax-on-Web), when filing the corporate tax return in Biztax, all real estate must be listed on a single form 270 MLH.

• Moreover, you must fill out one line per property and also per landlord (or person granting the business use right). If there are multiple landlords for the same property, you will need to add a new line for each co-landlord. Legally, there is no requirement to split the amounts between the different landlords. According to the instructions in Biztax, you may simply report the total amount under one of the landlords. In the other lines, it is advisable to enter zero in the corresponding columns.

• The fees for movable goods (e.g., when renting a furnished property) do not need to be included on form 270 MLH. In that case, you should still mention the fees for the real estate itself.

• Depreciation on a business use right (e.g., usufruct) also does not need to be mentioned.

• The minister has also clarified that a tenant must have taken the necessary steps to gather all the correct information for the form. If the tenant acted in good faith and can demonstrate that all possible efforts were made to obtain this information, the tax authorities would not impose penalties for, for example, a missing or incorrect national registration number of the landlord.

Do you have any questions? Or do you need help completing the 270 MLH form? Do not hesitate to contact one of our experts using the contact form below.