On 1 July 2015, the Ministry of Finance has set up 7 regional offices ‘Large Enterprises’ that will be in charge of the audit and the dispute resolution for some 15,000 large enterprises and non-profit organisations. As of 1 July 2016, the Ministry will stop auditing these large enterprises based on the type of tax due (company income tax, VAT) and organise audits on the basis of the size of the enterprise.
Flanders is introducing new tax rates for the donation of real property.
The old rates are on the left, the new rates are on the right.
Gift tax on real property is calculated on the value of the donation
La DH has discovered a tax haven next door : Flanders.
The occasion is that since 1 July, the gift tax on houses and apartments has been cut. The French-language newspaper La DH made a list of the tax differences between the three regions. Officallly Brussels, Wallonia and Flanders are not supposed to compete with each other by imposing lower taxes, there are quite a few differences :
1. the tax on the registration of cars. For heavy cars, such as a BMW X5 (4 litres diesel (x)drive at a cost of €80,000) this tax is only €468.90. In Brussels and Wallonia it is € 4,957 euros, ten times as much.
2. the gift tax on houses and apartments is much lower.
If you haven’t filed your tax return yet, you’re too late now. The deadline to file on paper was 30 June. You still have two weeks to file online.
If you do not file your tax return or if you file it late, there are not really any penalties unless you are a repeat offender. And if there is a penalty, it is 10 or 20 % of the tax you still have to pay. And since the tax has been paid during the year, the penalties should not be too high.
On 18 June 2015 the European Commission announced that it is referring Belgium to the Court of Justice of the European Union because it taxes Belgian residents differently on property abroad and at home.
If a Belgian resident earns income from property located abroad, that is taxed at a higher value than that from comparable property in Belgium. The Commission does not criticize the way Belgium assesses and taxes the income of property located in Belgium. However, there is a different method of assessment for income from property located abroad.
In Belgium, the income from property (irrespective of whether it is let) is calculated on the basis of the cadastral revenue, a theoretical rental value dating back to the 70-ies, with a correction to take account of inflation. However, for properties abroad, the tax is assessed on the rent received (for rental properties) or on the rental value (for second residences), minus a standard allowance of 40 percent for expenses. The European Commission estimates that income or deemed income from property located abroad is taxed on approximately 50 percent of the market value of the property, while income from domestic property is taxed on between 20 and 25 percent of the market value.