News

Do you sometimes give goods from your stock for free? In such case, you should be aware that when you give away gifts, this will have VAT consequences. If you have deducted VAT for these goods, you should correct this. In practice this means: you make a self-supply and pay VAT. On this general rule, there are a number of exceptions: supplying samples, business gifts of limited value, supplying food surpluses and gifts to good causes after disasters.

The GDPR rules (General Data Protection Regulation) are European rules protecting the privacy of citizens. Companies should comply with a number of rules in order to ensure that data are not misused. But also the government falls within this scope. So how about the tax authorities and your privacy?

A business lunch is an excellent occasion to negotiate a difficult contract. The restaurant expenditure is however only partially deductible. Hereafter we briefly remind you of the applicable rules.

Employers are obliged to transmit the professional withholding tax which they withhold on the wages of their personnel to the Treasury. On this obligation, a number of exceptions exist. E.g. for shift work in certain sectors. The exemption for shift work now also applies to the building sector.

The enforceable title in VAT will be automated. Therefore the Government will modify the VAT Code. Currently this enforceable title is the 'administrative injunction'.

Every independent entrepreneur in Belgium has to pay social contributions. Whose income is too low to pay social contributions, can apply for an exemption. As from 1 January 2019 the legislation whereby independents can apply for an exemption of social contributions, is reformed.

With a voucher or coupon you can buy a product or a service. For VAT purposes the question raises when VAT becomes due: at the time you buy the voucher or when you actually use it. As from 1 January new rules apply.

The way the value of the free use of a house for an employee or director is calculated, is under discussion for quite some time. The government now announced to adapt the rules. The value is calculated with the new formula: KI x 100/60 x 2.

When new legislation is due to arrive a number of companies tend to adapt their financial year. By doing so they want to benefit longer from the old rules and postpone the application of the new, more severe rules. In order to avoid this the tax legislator more often adds anti-abuse provisions, so that the change of the financial year has no further effect on the application of the new rules.

Transport of goods normally takes place in the country where the recipient of the services is
established. In case the transport fully takes place within Belgium, or outside the EU, the use
and enjoyment rule applies. The place of the supply of the services will then be the place of the
actual use.

The VAT fines scheme will undergo a facelift. For certain first infractions in good faith the fines will as from now automatically be waived. To make this possible, the VAT authorities have modified their internal instruction. The VAT Code and Royal Decrees will not be amended.

As of this year, you can opt to save a higher amount as private pension savings, up to 1.230 euro. If you choose to do so, you will obtain a relative lower advantage. The reduction is reduced from 30% to 25% of the saved amount. You should give this good thought. And opt explicitly.

The tax and social advantageous mobility allowance or cash for car scheme is not the same as the mobility budget. This we explained earlier. The mobility allowance exists since 1 January 2018, the introducing of the mobility budget is in preparation. In this article, we focus on the legal and tax treatment of the mobility allowance: swap a company car for cash.

The securities accounts tax imposes a 0,15% tax on everyone having one or more securities accounts with in total 500.000 euro or more. An administrative circular letter provided more details.

In general costs are deductible in the year which they are made or borne. Due to the corporate law reform this will change for expenses actually relating to another financial year.

The Court of Justice of the European Union easens its position on the formal conditions for VAT deduction. In two recent judgments the Court ruled that VAT deduction or VAT refund cannot easily be refused outside the standard periods.

There have been long discussions about the deductibility of catering expenditure. Are these reception costs and therefore only partial deductible? Or marketing expenses and 100% deductible. The minister is now tolerant. Catering expenditure for a marketing event are now fully deductible.

The law of 15 April 2018 has transposed a significant reform of our company law into practice. The merchant notion is abolished. Instead a new business definition is introduced. The law of evidence is transferred to Civil Law Code. The changes apply in principle as from 1 November 2018.

A company should pay at least 45.000€ to one of its company directors in order to benefit from the reduced corporate tax rate of 20%. If not, the standard corporate tax rate is applicable. Additionally, the company will have to pay a separate taxation. These rules apply to financial years starting as from 1 January 2018.

In the new circular letter concerning the registered cash desk, the tax authorities also focus on the special case of food trucks.

Since the beginning of this year employers can distribute easily a part of the profit to their employees as a bonus. Two different kinds of profit premiums exist. The categorized profit premium and the identical profit premium. One is easier to introduce than the other. Both have interesting tax and social advantages.

The certified cash register, also referred to as the white cash desk, has been required for some time in the restaurant and catering industry. However still a number of uncertainties exist. The difference between the supply of meals and drinks and catering or restaurant services remains difficult.

Companies making insufficient prepayments are punished. They have to pay a tax increase. As from this year, the Government wants to even more encourage prepayments. The tax increase percentage in the corporate income tax as from now amounts to 6,75%.

The rates for the deposit of the annual accounts for 2018 are published. Whether your company should deposit its annual accounts according to the micro scheme, abbreviated scheme or full scheme depends on certain size criteria and on the fact whether or not the company is listed. Do you know the size criteria by heart? A reminder.

One of the most important elements in de company tax reform is the way how capital reductions are treated. Previously the company had a free choice. For capital reductions as from 2018 the freedom choice is abolished. As from now the reduction is to be accounted for pro rata on the company's paid-up capital and on the reserves of the company. As a consequence part of the repayment becomes a distribution of dividends. Which is taxable.

Since 2015 investors in starting companies obtain a tax advantage. By doing so, the government wants to encourage investments and pull sleeping savings back into the economy. As from 1 January 2018 these measures will be expanded to investments in growth companies.

The reform of the Companies Code of 7 May 1999 was about simplification, flexibilization and adaptation to European evolutions. The last word is not written about these radical changes. Today we take a look at one of the most important principles in our company law: the distinction between civil and commercial companies.

Previously we wrote about the tax treatment of stock options. Today we further focus on a special rule which applies when a stock option is granted to a director working through a management company.

Who receives a pc, laptop, tablet or smartphone for free from its employer, receives a benefit in kind. Off course this is taxable. The benefit in kind is valued as a lump sum amount. These lump sum amounts are modified as from 1 January 2018 in order to bring them more in line with the real value of these devices.

The legislator finally took action to align interest rates for negligence and late payment with the market rate. The 7% rate will disappear. For interest for negligence the minimum rate will amount to 4%.

We are at the eve of a radical modernization of the Belgian company law. The highlights of these changes aim at a thorough simplification and a reduction of the numbers different forms of companies. This reform would enter into force very quickly with a long transition period.

An employee or a director obtaining stock options as part of his remuneration package, receives a taxable benefit in kind. How should this benefit in kind be calculated exactly? And when? Upon granting or upon exercising the option? We herewith explain more in detail.

Recently, the European Court of Justice has taken a smoother position towards the requirements for a valid invoice. Consequently VAT payers can deduct input VAT without holding a fully correct invoice. The Belgian tax authorities have now conceded. This is confirmed in a circular letter of 12 October 2017.

The law of 11 August 2017 has significantly changed the insolvency legislation for companies. The bankruptcy law of 8 August 1997 and the law of 31 January 2009 on the continuity of companies (the previous judicial agreement) entered into book XX of the Economic Law Code. Important novelty is its broader scope. All companies and free professions qualify for the insolvency procedures.

The European privacy regulation (GDPR) foresees a number of new provisions for processing, managing and keeping personal data. As from 25 May 2018 every Belgian company collecting data from EU citizens should comply with this new privacy legislation. Companies are responsible for complying with the privacy legislation and should be able to demonstrate this.

In a previous contribution, we provided you with some very good news: the corporate tax rate will decrease in the coming years, to 25% in 2020 and for SME's to 20% on the first 100.000€ profit. And there is also some bad news: the government wants this decrease to be budget neutral. Therefore, the decrease is compensated with new measures such as the abolishment or reduction of some existing deductions.

The budget deal which was presented by the government this summer, traditionally contained a number of tax measures. A short overview.

For goods given away by a company as samples, gifts and advertising items, special rules apply. Normally, when a VAT payer gives away goods for free, he should charge himself VAT. But exceptions apply for samples, gifts and advertising items. These goods can be handed out for free without VAT.

There are several ways to withdraw money from your company. The most obvious way is paying salary (to you as director) or paying dividends (to you as shareholder). Problem is that these are quite expensive methods from a tax perspective. Fortunately, there are alternatives. Why not loan from your company? This can be done in several ways. We explain briefly the advantages and disadvantages of the different possibilities.

Late payments of your invoice can have important consequences for your company. The applicable interest for late payment in commercial transactions amounts to 8% for the period from 1 July 2017 until 31 December 2017. Nothing changes compared to the first semester of 2017.

The secret commission tax has set a lot of tongues wagging during the last years. According to the legislator that tax can only be imposed in exceptional cases. In a circular letter of 2015 the tax authorities somewhat opposed to the more flexible position of the legislator. In a new circular letter the tax authorities clarify their position and comply with the vision of the minister.

Associations with social and cultural activities are VAT exempt for their normal activities. In order to fund their activity, they often organize a number of other activities. These are normally also VAT exempt. The VAT authorities have published a circular letter in order to provide more explanation.

When you grant a loan to a small company, you can obtain a tax advantage. E.g. there are regional tax credits for the win-win loan (Flanders) and the Coup de Pouce (Wallonia). Next to this a federal advantage is in place: you do not pay tax on the interests received for loans granted to start-up companies through a crowdfunding platform. Officially this exists as of mid 2015. Since additional legal rules were to be developed, the system could really start for loans granted as from 1 February 2017.

When a company puts a car at the disposal at a director or employee for free, they obtain a taxable benefit in kind. The company itself should report 17% of the expenses as disallowed expenses. Since the beginning of this year this percentage has increased up to 40% for companies which also bear the fuel costs. This rule gives rise to a lot of extra administration: in case the company wants to avoid that it will have to report 40% as disallowed expenses, it will have to demonstrate that only professional fuel costs were taken into consideration.

Directors are often (partially) remunerated by providing them a house for free. There have been a number of discussions on the deductibility of these costs. Currently there is no discussion anymore: these costs are deductible. However, according to the Court of Cassation, this is not automatically so. The company should explain the reason for providing the house and document its remuneration policy.

Biking to work brings a lot of advantages. The employer can put a bike at the disposal tax free and pay a tax exempt bike allowance and the employee can deduct 23 cent per kilometer as professional expenditure. There are exceptions for mountain bikes, race bikes and speed pedelecs (fast electric bikes).

This year the concept of a 'VAT group' exists exactly ten years in Belgian tax law. In this article we take a look at what a VAT group is and how it should be treated for tax purposes.

Six months after the closing of the financial year managers/directors are obliged to convene the annual meeting. The financial year should not necessary equal the calendar year, but for companies for which this is the case, the time for the annual meetings has come. The legal form of your company determines the method for the convocation to be followed.

Both the Flemish Bar Association and the French and German Bar Association will organise a 'Central Solvency Registry'. This new registry is an electronic database in which all bankruptcy files will be stored and kept. By doing so, bankruptcy procedures will be fully conducted digitally.

The Court of Justice of the European Union has recently taken less stringent positions with respect to formal conditions. As a consequence VAT payers can benefit from VAT exemptions when they fulfilled all material conditions, even when they do not meet the formal conditions. Therefore it is no longer a disaster if not all requirements are (correctly) filled out. But what does this exactly mean for a 'transfer'? A short analysis.

It is again tax return season. Also this year the personal income tax return has become more extensive and complex. This is due to, how could it be different, the constantly more complex dwelling taxation. The changes in Flanders and Wallonia for loans granted as from 1 january 2016 are also reflected in the tax return form. Herewith we try to guide you through the tax return.

The tax authorities have changed their calculation rules for the benefit in kind in case an employee or company director obtains free housing in an immovable property, but makes use of the house only during a part of the year. In such case the amount of the benefit in kind can be reduced following the use of the house. As from now it is no longer calculated per month, but day by day.

Each year companies should draft and file annual accounts. For financial years starting on 1 January 2016 there are new templates for the annual accounts. Companies qualifying as micro-companies can use the micro model for their annual accounts.

Within the framework of a student labour agreement, a student can, as from 1 January 2017 work 475 hours per calendar year instead of 50 days with beneficial social contributions. It is also new that the beneficial position depends on the timely filing of the Dimona-return.

The VAT rules for cost sharing associations or independent groups were amended in July 2016 due to European pressure. End of last year the tax authorities finally issued a circular letter providing more explanation on these new rules. We herewith explain these briefly.

Whomever gets a home for free from his employer, obtains a taxable advantage. The value of the advantages is calculated differently depending on whether it is put at the disposal by a natural person or a legal person. The advantages can be four times as expensive when provided by a company. This difference can be a problem. Case law recently judged twice that this is in breach with the constitution.

Companies using a registered cash system are as from 1 January 2017 excluded from the flat rate VAT schemes. From then they are subject to the normal VAT rules.

A number of years ago the tax shelter for the audio-visual sector was introduced in Belgium. The intention was to have companies make investments in films and TV series in order to promote the production of the audio visuals works. In 2015 the system was dramatically reformed. Since 1 February 2017 a new change is to be noted: the system is extended to performing arts.

Earlier we informed that the patent income deduction was abolished and will fade away after a period of five years. Since investing in innovation remains important, the government has developed an alternative: the innovation income deduction. In this contribution we zoom in on this new deduction more in detail.

As from now on a bailiff can collect uncontested debts between companies. For uncontested financial debts a judge does not longer has to intervene. The administrative collecting of uncontested debts asked on demand of the creditor's lawyer consists out of several phases.

Following the general principles a VAT payer does not have right to deduct input VAT without a compliant invoice. Recent case law from the European Court of Justice has shown that VAT deduction cannot be refused on the sole basis that some mandatory invoicing requirements are not quoted on the invoice. If the VAT payer by other means can prove that all material conditions are fulfilled, this would be sufficient to deduct the VAT.

Up to last year, companies providing their staff with a company car should report 17% of the amount as disallowed expenses. As from 2017 40% of the amount will have to be reported as disallowed expenses, when the company pays all or a part of the fuel costs, e.g. in case the employee/director receives a company car and a fuel card. This new rules has been introduced by the Program Law of 25 December 2016.

Under fiscal co-parenthood the ex-partners share the tax advantage they obtain since they have common dependent children. The parents share the parenthood and the housing of the children. Until now only minor children qualified for this system. As from 2017 it will also be possible for adult children.

The tax credit for low activity income is meant for tax payers having a limited income from their professional activity. If they pay less tax than 670,00 EUR, they even obtain refund of the amount. This scheme is now extended to new categories of independents.

An assisting spouse is a spouse helping an independent with his activity. The tax payer can allocate part of his income to the assisting spouse. Here we take a brief look at the specific rules for the assisting spouse.

Many employees start looking forward to their year-end bonus or 13th month pay. But the payment of these bonuses is no legal obligation for the employer. Everything depends on the applicable rules for the sector or at company level.

A football club or a brass band running a canteen are found almost in every Belgian village. Under certain conditions these canteens are VAT exempt. As from 1 January 2017 the rules change. Time to take a look at the new rules and examine whether your society can still apply the VAT exemption.

The patent income deduction as it exists today disappears with a grandfathering period of five years. In the meantime the Government is working on a new, broader innovation income deduction.

Previously we discussed the income tax regime for income generated by sharing economy. Engaging in activities the sharing economy also has VAT consequences. In this article we explain the VAT aspects.

VAT payers are in principle obliged to file an annual client listing. They have to let the VAT authorities know who their clients are. For small companies these rules have simplified as from 1 July 2016.

The die is cast. The Britons have chosen for a Brexit. That a Brexit will have consequences for business in and outside the UK is clear. Since it is the first time that a country will quit the European Union, the consequences are hard to predict. Everything will depend on the exit negotiations.

Undoubtedly you know that when you get a visit from the tax inspector, you should give him access to all your documents which are necessary to determine the amount of your taxable income. This includes data you keep digitally on your computer or server. The Program Law of 1 July 2016 added that tax inspectors can also see data you keep externally in the cloud.

It was long awaited: a new and permanent scheme for fiscal and social regularisation. Since 1 August 2016 it is effectively applicable. Tax payers receive (again) the possibility to regularise their fiscal and social position. This can be done by spontaneously declaring non-declare income.

An intra-Community supply (ICS) is VAT exempt. The tax will namely be due in the country (another EU member state) where the intra-Community (ICA) acquisition will take place. In order to do so, the supplier must have sufficient evidence that the goods are actually sent abroad. This is not always easy. In order to meet this obligation, the VAT authorities now also accept a destination document.

In the meanwhile the scheme with the registered cash register is applicable for some time. Still problems arise. The Council of State had problems with the famous 10% threshold. In order to meet all criticism it was replaced by another threshold: if the turnover coming from meals exceeds 25.000€, the business should use a registered cash register.

Services in the 'collaborative economy', which are offered through online platforms such as Uber (taxi service) and thuisafgehaald.be, can from now on benefit from a special tax treatment. This income is separately taxed as sundry income at 20%. Moreover you can claim a cost lump sum of 50%. A nice and beneficial tax regime. But it does not apply to everyone. Some explanation.

VAT deduction on car expenditure is limited to 50%. This applies in general to all costs related to cars. This will now change. The VAT authorities no longer consider applying publicity on a car as car expenditure, but as publicity costs.

Since 1 October 2014 retailer and service providers can round the amounts charged to their customers to 5 eurocent (to the closest multiple). Such rounding also has tax implications. How should the VAT due be calculated? The tax authorities have given some explanation in an administrative decision.

Since the personal income tax is partly regionalized, the regions are competent for granting tax reductions for loans for the private dwelling of the tax payer. Flanders already used this possibility to modify the rules for loans entered into as from 1 January 2016. This system is referred to as the integrated Flemish living bonus.

Small companies are VAT exempt: they should not charge VAT on their supplies but can neither deduct the VAT they have paid themselves. A companies is 'small' for VAT purposes when the annual turnover is less than 25.000€. In this contribution we take a look at how the turnover should be calculated.

After some delay the new rules subjecting incorporated directors to VAT entered into force on 1 June 2016. In order to avoid all possible misunderstandings, we will here refresh the new rules and explain the last updates.

The European customs landscape will look differently the next years. This because the new Customs Code for the European Union entered into force on 1 May 2016. Since not only regular importers and exporters should be abreast of these changes, but also those who come in contact with import and export occasionally, we provide you here with an overview.

The government wants to stimulate telework by treating the allowances which the employee receives in a favourable way. Until now these allowances were treated differently by the social security and tax authorities. The ruling commission now follows the more favourable approach, being the one of the social security authorities.

The personal tax return form for tax year 2016 (income of 2015) has in the meantime been published in the Belgian Official Gazette. A quick view on the tax return makes one thing immediately clear: it becomes again longer (more than 800 codes) and more complicated. We guide you through the novelties section by section.

Belgian companies or companies subject to the non-resident taxation (BNI) should report payment to tax havens. The countries which are considered as tax havens are periodically reviewed. On 1 March 2016 a royal decree was published containing a new list of tax havens. We take a look at the principle and the new list.

Companies making no or insufficient prepayments will have to pay a tax increase. The increase percentage is determined every year. For the prepayments of this year (income 2016, tax year 2017) the same percentage as last year applies. This percentage amounts to 1,125%.

The annual meeting of shareholders/partners in an nv, bvba and cvba is a mandatory body with exclusive powers such as the approval of the annual accounts. Not everyone can attend the general shareholders meeting. The articles of association and the Belgian Companies Code determine who is allowed and can participate in the vote.

Planning to hire your first employee? Than you will pay no employer contributions for an infinite time. The existing reductions for the first up to the fifth employee are shifted to the second up to the sixth employee. In other words, the target reduction for 'first recruitments' is extended from five to maximum six employees.

When you do not agree with the assessment imposed by the tax authorities, you can lodge an objection with the tax authorities. Until now lodging such an appeal by the tax payer was subject to strict rules. The tax authorities now moved towards less formalism, so that lodging an objection becomes easier.

Who wants to understand the tax treatment of immovable property, should first understand what cadastral income is all about. The CI plays a role when determining immovable income and immovable withholding tax , but also for the reduced sales tax when selling immovable property. Some more explanation regarding this concept.

The much debated tax shift has as objective to shift the tax burden from labour to consumption and capital. The government wants to achieve this through a number of specific measures. One of these is the increase of the withholding tax rate up to 27%. Another measure is the adaptation of the tax brackets in the progressive personal income tax.

Medical services performed by doctors, nurses and hospitals are VAT exempt. Since 1 January 2016 this VAT exemption however does not longer apply to aesthetic surgery. This will as from now be subject to VAT. In order to smoothen the transfer from the exemption to taxation, transitional measures are foreseen.

For small companies, several derogative tax rules apply in Belgian law. Since new rules apply as of January in order to determine whether a company is 'small', it seemed a good opportunity to take a look at these derogative rules. After all a list with special rules has been extended during the last years.

In the VAT story, the government plays a special role. And then we mean especially the government providing services to its civilians. Through these activities it participates after all in the economy. On the other hand the government is in principle not considered as a VAT payer. If however the government provides services which could also be provided by VAT taxable companies, unfair competition could occur between companies and the government. How this is solved is laid down in a new circular letter of the tax authorities dating from December 2015 in which the VAT treatment of acting as government is explained.

Small companies are VAT exempt, they should not charge VAT but on the other hand cannot deduct any VAT. As a consequence they escape from a number of administrative obligations. Companies having an annual turnover lower than 15.000€ are small companies for VAT purposes. This threshold is increased up to 25.000€ as from 1 January 2016. As a consequence there will be a lot more small companies. Time to take a look at who or what a small company is.

The last years several changes were made on the rate of the withholding tax. This year the rate increases again. The standard rate of the withholding tax will as from 1 January 2016 amount to 27%. An overview on the different kinds on income which will be taxed at 27% and the exception escaping it (for the time being).

Thanks to the investment deduction companies investing in certain new depreciable fixed assets obtain a tax incentive. Entrepreneurs receive a tax deduction of a certain percentage of the invested amount. For smes and entrepreneurs-individuals a new possibility occurs: investment deduction for digital investments.

The program law of 10 August 2015 contained a number of incentives for starting companies. Two of those especially want to encourage investments in start-ups: a tax reduction for who participates in equity and an exemption for who grants credit to a starter. Also the starting company itself is concerned: it obtains a partial exemption of the deposit obligation of the professional withholding tax.

Directorship in a company can be assumed both by an individual as by a corporation (e.g. another company). When a corporation acts as director, it performs a service which is in principle subject to VAT. For the time being such corporations should not charge VAT, due to the flexible position of the tax authorities. The administrative tolerance will expire as from 1 April 2016 and directors-corporations will have to charge VAT.

The accounting qualification of a leasing transaction is important to determine the applicable accounting reporting. For accounting purposes the (financial) lease is quoted on the assets side of the balance sheet. All other transactions such as rent and operational lease, which do not meet the conditions for financial leasing, are for accounting purposes treated as rent. The Accounting Standards Commission (CBN) has recently published a (summary) advice 2015/4 with the most important principles related to leasing.

The taxation of secret commission remains a source of worries. At the end of last year it seemed that their was some peace and quiet after years of legislative changes and administrative tolerances. During summer the tax authorities again came up with a circular letter which again tightens the smoother text of the law. What exactly do the tax authorities say?

There has been quite some talking bout, but as from 2016 it will happen. Throughout Belgium a kilometer charge will be imposed on Belgian and foreign trucks. This new rule will replace the taxation through the Eurovignet as from (with reservation) 1 April 2016. The tax is both federal and regional. The tax will after all be applicable on the full Belgian territory, while the practical rules will be determined by the regions (which have already laid down these rules in a decree or ordinance). The three regions will have to work together and have therefore entered into a cooperation agreement.

Long payment arrears and payment delays are harmful for your company. The law on the battle against payment arrears in commercial transactions creates a clear legal framework for payments between companies and between companies and the government. The half-yearly adjustment of the interest rate for payment arrears in commercial transactions amounts to 8,50% for the second semester of 2015.

Letting of immovable property is in principle VAT exempt in Belgium. This means that the landlord of the immovable property should not charge VAT. This has as a consequence that the landlord cannot deduct the VAT which he has paid on the acquisition/repair/maintenance of the building. An important exemption however is the letting of warehouses for the storage of goods. Such letting is subject to VAT.

The rules concerning the exigibility, and the thereto related deduction of VAT, have changed several times over the last years. Since the start of 2015 the time of the supply, the completion of the service or the (partial) payment were decisive. This however led to important difficulties in practice. Therefore the rules will most probably change again as from 1 January 2016. The government already laid down its draft legislation.

The Program Law contains two measures making it interesting for tax payers to invest in starters. The tax benefit (30% or 45%) for those making investments with risk has already been discussed. You can also invest in a starter by granting a loan through a recognised crowdfunding platform.

What if the fiscal legislator implements a rule with which you do not agree. You believe your fundamental rights are infringed. You are of the opinion that the government was not qualified to take such measure. Then you can turn to various institutions in order to challenge these rules. Depending on the nature of the rule you want to challenge and the rights which are infringed, you can turn to a specifically appointed legal institution. After the Constitutional Court and the European Court of Justice, we now take a look at the Council of State.

All income of a company, also these coming from outside its corporate purpose, is taxable professional income. Professional expenses are deductible if they comply with the conditions of article 49 Income Tax Code 92 (ITC92). Recently the Supreme Court came back on its earlier case law. The deduction of professional expenses would (no longer) depend on the condition that they would have to be linked with the activity of a company, as laid down in its corporate purpose.

Every company meeting certain criteria should file its annual accounts. Existing companies not filing their annual accounts are in a state of anonymity and there is room for all sorts of questionable practices. Late or non-filing is therefore subject to criminal, tax or judicial sanctions. These sanctions have important consequences for the company in question.

As is the case every year, the corporate tax return has been modified due to legal changes and new measures. We take a look at was has been changed.

What if the tax legislator introduces a rule you do not agree with because it infringes your fundamental rights. Depending on the rule you want to attack and the rights which are infringed, you should address another competent Court. In this contribution we discuss the Court of Justice.

Since 1 January 2015 the Mini-One-Stop-Shop-system (MOSS-system) is applicable. Are you a supplier of electronically supplied services, telecommunication services or radio and television broadcasting services? Are you established in the EU and do you supply to non VAT payers? Then you should take the following changes regarding the place of supply into account.

The tax authorities determine whether a company should make prepayments. For companies having an financial year per calendar year (from 1 January until 31 December) these dates are 10 April, 10 July, 10 October and 20 December. These dates can be postponed one or two days when they fall on a Saturday, Sunday or holiday. For companies not keeping their financial year per calendar year or having a shorter or longer financial year, other dates apply. In this article we focus on companies having an financial year of less than twelve months.

What if the fiscal legislator introduces a rule which you do not agree with. You believe that your fundamental rights are jeopardized. You believe that the authority was not competent to introduce this measure. Then you can address yourself to several institutions to challenge these rules. Depending on the rule you want to challenge and the rights which are infringed, you should go to another court. In this article we focus on the Constitutional Court.

Our annual accounts legislation is based on the Fourth and Seventh Bookkeeping Directives. The new European Annual Accounts Directive 2013/34/EU of 26 June 2013 for non-listed companies amends these directives and modifies the exiting legal framework significantly. The new directive foresees different arrangements for micro, small, medium and big companies in order to make sure that the administrative costs for the annual accounts obligations are in line with the size of the concerned companies. The debate on the implementation of the directive into national legislation is going on.

The discussion is going on for a long time: how about catering expenditure made by a company for publicity events? Are these advertising costs for which VAT is deductible? Or are these reception costs, so the VAT is not deductible. The tax authorities were of the opinion that it concerned non-deductible reception costs. But now they admit: the VAT is deductible.

The tax authorities dictate when companies should make their prepayments. For companies with an financial year per calendar year (from 1 January until 31 December) these dates are 10 April, 10 July, 10 October and 20 December. These dates can be shifted one or two days when they fall on a Saturday, Sunday or holiday. For companies for which the financial year does not equal a calendar year or which have a shorter or longer calendar year, other dates apply. In this article we focus on companies which have an financial year of more than twelve month.

The personal tax returns have to be filed soon. So we should take the time to look into the many novelties on the tax return of this year: and there are a lot. This is the consequence of the Sixth State Reform and the regionalization of the personal tax which will have its impact for the first time in the tax return this year.

The Sixth State reform did not simplify Belgian taxation. The Regions are partly competent for personal income tax. They can not only levy surcharges on the Federal Taxes, but they are also competent for tax reductions related to their other non-taxation powers. For other tax reductions the Federal Government remains competent. We herewith provide an overview of who is competent for which tax reduction.

The tax authorities instruct when companies have to make their prepayments. For companies having their financial year per calendar year these dates are 10 April, 10 July, 10 October and 20 December. These dates can shift one or two days in case they fall on a Saturday, Sunday or holiday (this year 10 October falls on a Saturday, so the due date is shifted to 12 October). This article is about the companies which do not keep their financial year per calendar year.

If you want to deduct professional expenditure, you can choose to prove your actual professional costs or to deduct the professional expenditure lump sum. This lump sum consist out of a decreasing percentage in function of an increasing income. In 2015 and 2016 these percentages for employees are increased in two phases. Also the amount on which the percentages are applied, are slightly increased. An overview.

Companies making no or insufficient prepayments have to pay a tax increase. The increasing percentage calculating this increase is determined for each year. For the prepayments of this year (tax year 2016) again a lower increasing percentage than the previous years applies. This percentage amounts to 1,125%.

Traditionally the annual meeting is organized in May and June. The convocation of a general shareholders meeting is subject to the rules of the Belgian Companies Code. The convocation depends on the legal form of your company and nature of the issued securities. The general meeting can exceptionally renounce these convocation formalities and meet without formal convocation. Some points of attention.

When no contractual interest rate is foreseen for late payment, the legal interest is applicable. The legal interest rate in civil and commercial matters which amounted in 2013 and last year to 2,75%, decreases to 2,50% in 2015. This interest rate is not applicable in tax and social matters, trade transactions or public contracting.

The indexed amounts for tax year 2016 were published by the Federal Public Service Finance in the Belgian Official Gazette. We give you an overview of the most important amounts. Note that the Michel I government decided not to adapt the maximal amounts for certain tax reductions for the coming years. Moreover, they are frozen to the amounts for tax year 2014.

For VAT purposes, a 'new' building is treated differently than an 'old' building. That is why it is important to know whether a building is 'old' or 'new'. For a recently erected building it is not so difficult. For existing buildings which are being rebuild or renovated, the answer is often more difficult.

The bookkeeping of your company should in principle be kept in euro. In exceptional cases your bookkeeping and your annual accounts can be drafted in another currency. A special procedure should be taken into consideration.

If your company does not pay the withheld professional withholding tax on the personnel's wages or the VAT received from its clients, it makes a fault. As a director of your company you are also liable. This means that the tax authorities can also turn to you to collect their money. Following a recent judgment of the Court of Cassation, it becomes even easier for the tax authorities. Therefore beware.

You want to invest in your company. Different possibilities exist. You can loan your private money in return for interest. Or you can do a capital increase whereby you receive new shares and possibly dividends. What would you choose? We put the two possibilities next to each other with their pro's and contra's. Note that we only focus on the situation in which you invest in your company. Off course other possibilities exist: you can look for other shareholders or ask your bank for a loan.

One of the element to calculate the benefit in kind for company cars is the CO2-emission. The CO2-emission is calculated in function of the reference emission. A higher CO2-emission refers to a less clean car and a higher benefit in kind. The reference emission in laid down every year in a Royal Decree. Also for 2015 the reference emission somewhat decreases, and as a consequence the CO2-percentage increases and the benefit in kind becomes more expensive.

The last years the taxation of commission fees has been the object of different legislative changes and different points of view of the tax authorities. Also the Michel I Government had announced amendments in the coalition. The result is a new scheme in the Program Law. The law confirms the current flexible position taken by the tax authorities. The special taxation will only be used as a safety net.

The chargeability of VAT was a hot subject during recent years. It can be summarized as follows: issuing an invoice no longer leads to the chargeability of VAT. The moment of chargeability has shifted to the supply of goods, the completion of the service or the (partial) payment of the invoice.

Restaurant expenditure is deductible for income tax purposes for only 69%, provided it has a professional character. This means that these expenses should relate to your profession. This is the case when you go out for lunch with a (potential) client or a supplier. The exact appreciation depends on the factual circumstances. Below we give some elements which can be taken into account when making this assessment.

SME's will in the future be able to reserve a part of their profit against an anticipative tax rate of 10%. In case of a future distribution at the occasion of the liquidation of the company, withholding tax is no longer due. Herewith the transition regime which was applicable until 1 October 2014, under which companies could block their reserves, becomes a permanent regime for SME's. The practical application of the new rules differs however from the transition regime.

The place of supply of services determines in which country VAT is due. In order to determine where a service takes place, the VAT Code contains a number of localization rules. For internationally active VAT payers, these rules are very important. They should know where they should charge VAT. The main rule is that a service takes place where it actually takes place. However a number of exceptions exist. We take a look at the B2B localization rules.

Each employee which during the calendar year has reduced his average working hours will receive a December calculation in December. Henceforth this December calculation looks a lot simpler. As from this year you should no longer pay advanced holiday allowances for the next year.

The federal coalition agreement has a number of tax consequences. For personal income tax the government wants a shift from taxing labour to other taxes.For corporate tax the transition scheme for liquidation boni is in fact perpetuated and also for VAT some changes are in the pipeline. We now already comment on the most important items. We will come back with more detailed information once these ideas are translated into concrete measures.

Did you ever take goods from your stock to give them away for free as a present or a gift for charity? Or are you planning to do so? Do not forget that this has VAT consequences. If you have deducted VAT, you will have to 'withdraw' the goods. This means that you will have to pay VAT.

In what cases can companies adapt or modify the annual accounts which were approved by the general shareholders' meeting? The Accounting Standards Commission (ASC) comments in its advice 2014/4 on the different methods to correct approved annual accounts. Also the accounting aspects are discussed.

The right to deduct VAT is an essential element of VAT. VAT payers charge VAT to their clients. This VAT is transferred to the Treasury. However they can deduct the VAT which they have paid themselves. A VAT payer should not carry the charge of VAT. A simple rule, which in practice is not always that simple.

If you rent an immovable property to perform your professional activity, you can deduct these costs. This is the case for the rent itself, as for other costs relating to the rent which you should pay. We like to draw your attention to some fiscal points of interest.

When you have the visit of a tax inspector, he can audit all books and documents. Some tax inspectors want to take these books and documents with them to their office. They have the right to do so, but not unlimited. A recent circular letter sets out the rules. We explain them in seven points.

Car expenditure is only partly tax deductible. In a new circular letter the tax authorities has adapted the rules applicable to cars which are put at the disposal of third parties, when this free disposal is a benefit in kind in hands of the third beneficiary. In other words: the new rules apply to cars put at the disposal of an employee or a director.

In Belgium it is the habit to close the financial year on a fixed date. Since there is no explicit legislation, the Commission for Accounting Standards allows that the start and the closing of the financial year is set on a fixed day of a given month. Since the use of a variable date differs from the most important habit is Belgium, a number of conditions have to be met.

Tax payers are obliged to report the existence of foreign bank accounts to the tax authorities. Next to this, it is the aim that tax payers provide more information about these bank accounts to the Central Point of Contact (CPC) the National Bank of Belgium. The tax authorities will invite tax payers as from this autumn to communicate the required information. More specifically it concerns the bank accounts reported by the tax payer in the personal tax return for the tax years 2012, 2013 and 2014.

Do you perform both taxable and exempt activities? Then you are a 'mixed VAT payer'. This means that your right to deduct the VAT which you have paid is limited. You only have right to deduct VAT to the extend you perform taxable transactions. A part of the VAT will be non-deductible.

VAT payers can immediately deduct the VAT they pay on their purchases they use for the activity subject to VAT. However, changes in circumstances can lead to the situation that in the past too much or too less VAT was deducted. In that case the VAT deduction is revised in order to correct the situation. In this contribution we focus on the VAT levied on capital goods.

If your company realizes capital gains on shares, these capital gains can be taxed under different regimes. Depending on the regime the capital gain is exempt or taxed at another rate (e.g. 0,4% or 25%). Which regime is applicable depends amongst others whether it is a big or small company, how long you keep the shares, ...

Do you know as an entrepreneur which invoice you can receive in cash? This is not unimportant since the scope of the anti-money laundering legislation of 11 January 1993 has been enlarged significantly as from 1 January 2014 and infractions are penalized harder. A distinction should be made between real estate transactions and other transactions. The threshold for cash payments has been decreased to 3.000€. For real estate transactions all cash payments, including advance payments, are forbidden.

The general shareholders' meeting is an obliged organ with legal powers. When your accounting period equals the calendar year, the annual meeting is usually held in May or June since it must be held within six months after the accounting period. The annual shareholders' meeting can exercise all powers given by the Belgian Companies Code and the articles of association. An overview.

The personal tax return for tax year 2014 is published. As is the case every year it contains a number of new codes, while other codes are deleted. It is remarkable that this year there are less codes, while the previous years extra codes were introduced. A number of unnecessary codes are deleted. On the other hand, due to changes in the law, new codes were needed.

The introduction of the registered cash register in the catering sector was no walk in the park. Meanwhile the first catering entrepreneurs have started using the system. Others still have some respite, but not too long. As from 1 January 2015 it will be an obligation. Time to explain the rules.

Small VAT payers performing an economic activity, can if they wish fall within the special VAT scheme for 'small companies'. As from 1 April 2014 the threshold to qualify as a 'small company' will be increased up to 15.000€. In this way they can avoid a lot of administrative hassle. Disadvantage is that they cannot longer deduct VAT paid on their purchases. We make a balance between the pro's and con's.

In case of self-billing it is not the supplier or the service provider, but the client which drafts the invoice. Besides this the customer will also account for the VAT due. December last year the VAT authorities have published a new administrative circular explaining the system. We herewith explain the most important topics.

Do you have a problem with the tax authorities? You can off course turn to the courts. But know there are alternative ways to solve this conflict. Since 1 June 2010 you can turn to the tax mediation agency. This autonomous agency with the tax authorities looks for solutions which are acceptable for both the tax payer and the tax authorities.

VAT payers should file an annual return quoting their VAT taxable customers. This return is called the annual VAT sales listing. Ultimate filing date is 31 March. We explain what should be reported in the annual VAT sales listing.

The new VAT invoicing and exigibility rules, as imposed by the European invoicing directive, remain difficult to implement. The full implementation has been postponed several times by the government. At the end of 2013 it was confirmed that the transitional arrangements can be further applied until the end of 2014. We herewith summarize these transitional arrangements and comment further on the new rules.

Traditionally some new fiscal arrangements are introduced at the end of 2013. One of these is the return of the standard investment deduction for sme's. We evaluate these (new) rules.

There have been quite some discussions, but it was decided after all. As from 1 January 2014 lawyers are not longer VAT exempt and should charge VAT on their services. There are a number of consequences. Both for the lawyers as for his client. Some explanation ...

As employer you must withhold professional withholding tax on the salaries you pay to your employees. This withholding tax should subsequently be paid to the Treasury. For companies 1% of this withholding tax should not be paid/transferred. As from 1 January 2014 this exemption percentage is increased for small companies to 1,12%.

Electronic invoicing exists in Belgium almost for ten years (since 2004), but was not really successful at the start. Different legislative 'repairs' had to change this. As from January last year (2013) a new legal framework applies to electronic invoicing. Time to explain the what and how of electronic invoicing or 'e-invoicing'.

Sme's are often called the engine of our economy. Also the 'tax legislator' is conscience of that. That's why sme's have a special regime in our tax system. Several tax provisions foresee in a derogative and more advantageous treatment for sme's than for 'big companies'. Due to the ever changing legislation it is not easy to keep an overview. Here we list the tax advantages as they currently exists and provide some explanation.

The general rule is simple: as a private individual you pay VAT in the country where you purchase a product. VAT is after all a consumption tax, which should be paid in the country of consumption. However exceptions apply: for new means of transport, excise goods, distance sales and goods which have to be installed.

Earlier we commented on the current account showing a debit position. Here we will focus on the tax consequences which a credit position will have for you as a company director. In a credit position your current account is 'positive' meaning that the company owes you more than you owe the company.

Belgian inheritance duties contain a number of 'fictions'. These are legal provisions stating that certain transactions 'under living' are to be considered as a transfer after death. Certain assets are considered to be part of the estate, even if they are transferred by the testator to the successors before his death. Consequently a higher amount of inheritance duties has to be paid. We explain some of these fictions more in detail.

A current account is a balance sheet account on which you book amounts you owe to your company and amounts which your company owes to you. If the current account is negative (shows a debit position), this means that you have more debts to your company than receivables. If the current account is positive (credit position), you have more receivables than debts. Both situations have their specific tax consequences, for you and for your company. In this contribution we focus on the tax consequences for the director when the current account shows a debit position.

Individual forms and summary statements are important fiscal documents. Both for who makes costs as well as for those receiving remunerations. The debtor should be able to justify these amounts. He is obliged to issue these forms. The recipient of the remuneration has with these forms the data needed to comply with his tax obligations: in first instance to declare taxable income.

The VAT incurred on a mixed used company car (private and professional use) can only be partially deducted. Previously we explained the three methods according to which the allowed deduction can be calculated. The VAT authorities published a new circular letter on 9 September 2013 in which the different methods are explained, some changes are made and a fourth method is added.

Anyone committing an infringement against the provisions of the income tax code risks being fined. The officer which is empowered by the regional director can impose fines from 50€ up to 1.250€ for each infringement against the income tax code or its decrees. As from 30 September 2013 the fines are strengthened. The following fines now apply to these infringements.

As from 1 February 2014 within the SEPA zone only the European bank account number can be used. For bank transfers and automatic bank transfers which you send to your bank electronically, you should use the specific SEPA standards. Banks can help you migrating, but you have to do most of the work yourself. Which steps are needed in order to have your administration and management ready in due time?

Meal vouchers complying with a number of conditions are not considered as salary and are fully tax exempt. Both for the employer as for the beneficiary. One of the conditions is the validity of the meal voucher. The validity has been increased from 3 months to 1 year. The new validity applies to paper meal vouchers issued as from September 2013 and to electronic meal vouchers which are credited to the employee's meal vouchers account as from 11 August 2013.

The benefit in kind for company cars still gives a lot of entrepreneurs eyesore. Many have tried to escape. The media gave recently much attention to an entrepreneur driving his company's Porsche without being taxed on the benefit in kind. Can you do that to? It still is doubtful.

The supplementary pension of employees and directors which is financed through employer's contributions will in the future be taxed otherwise (meaning higher) when the pension capital is assumed early. Also the rates of the professional withholding tax on capital distribution for employees and directors are increased. The new rules are applicable for capital distributed as from 1 July 2013.

The special taxation on secret commissions is a taxation of 309% which can be imposed on companies which cannot justify certain expenditure (fees, commissions, etc.) with the necessary tax documents. The last two years, different changes have been made to the regulation, first tightening it and afterwards introducing mitigations. At the end of June a new regime was entered into the law. A circular letter has further explained this mitigation.

The general withholding tax rate is 25%. Although it is the intention of the government to apply this rate to all investment income, derogations still apply. Moreover, in order to promote investments in sme's, a new derogation was introduced. When you invest in sme's, you pay only 20% or 15% on the dividend received, depending the moment of distribution. The new regime applies to shares distributed for a capital increase or establishment as from 1 July 2013.

Federal civil servants receive as from 1 July 2013 an allowance of 0,3461€ per kilometer when they use their private car for professional travel. This lump sum amount is also applicable in the private sector. The tax authorities accept this amount as a lump sum reimbursement for mileage to employees using their private car for professional travel.

The liquidation bonus which is obtained by a full distribution of the authorized capital of your company will as from 1 October 2014 be subject to a general withholding tax rate of 25%. It may seem still a long time to go, but you can now anticipate to these changes and - under certain conditions - distribute taxed reserves against 10% withholding tax. As a consequence you can during eight year perform no capital decrease nor change your dividend policy.

When an employee has to go abroad for a short mission, you can as the employer grant him a lump sum allowance. You can choose for the general lump sum of 37,18 per day (irrespective of the destination of the trip) or for the amount figuring on the country list of the Ministry of Finance (amount depending on the country). This amount is fully deductible for the employer, but is not considered as taxable income for the employee.

When you perform the activity of a bookkeeper as employee or civil servant, you can as from now join voluntarily the Institute of Accounting Professionals and Tax Experts. Earlier this was only possible and obligatory for self-employed bookkeepers in main or ancillary activity.

A number of companies reward their employees, besides their normal pay, with meal, eco, sport or culture vouchers. This is possible since it is beneficial for the employee. The legislator has of course imposed some conditions.

If you want to deduct your real professional expenditure instead of using the lump sum deduction, you should have the necessary supporting documents. Sometimes it is rather difficult to prove the correct amount. In order to solve this and to avoid discussions, you can conclude an arrangement with the tax authorities. This works as follows ...

If you start a company, you start an economic activity. This triggers a lot of fiscal obligations. Probably you will become a VAT taxable person. You should therefore, before starting the economic activity, comply with a number of administrative formalities.

Many company directors work through a management company for a (their own) exploitation company. Such management company is not a legal form in itself, but can take the form of an NV, BVBA, V.O.F. ... The name specifically refers to the corporate objective. Though there are no specific corporate, social or tax rules for these companies, some specific tax questions raise after all.

When organizing a general shareholders meeting a number of rules should be complied with. In case of non-compliance with these rules, there is a risk that the decisions of the general shareholders meeting will be declared null and void. One of the most common nullification reasons is the non-compliance with the notice formalities.

Previously we commented on the normal monthly and quarterly VAT returns. Not every VAT payer should file periodical VAT returns. Some VAT payers and some non-VAT taxable persons should file a special VAT return. We explain who, when and how.

If your company requires new means you can off course look for new investors or invest again as a partner and perform a capital increase against the issuance of shares. Or you can look for credit with a financial institution. But you can also grant a loan to your company. Granting a loan to your company may have some specific tax consequences.

As from end 2002 tax payers and candidate-investors can apply for a ruling in order to know how tax legislation will be applied to their projects. Who would like to obtain certainty on the nature of a labour relationship or especially on the chosen capacity - independent or employee - can as from now apply for a social ruling. The Administrative Committee for the regulation of the labour relationship is after five years finally composed.

A company making insufficient prepayments, will be penalized. A tax increase will be imposed. On the other hand a company has a financial advantage when not making too much prepayments. Searching for an optimal amount of prepayments is a difficult exercise. We give you some tips and tricks.

Each VAT payer should regularly file its VAT returns. Some file monthly, some file quarterly. But which rules apply?

Did your company introduce a bonus plan for employees attempting to reach a certain collective goal? Last year such a bonus or non-recurring result driven advantage was socially and fiscally exempt up to an annual threshold of 2.430€. Only an extra contribution was due by the employer. As from 1 January 2013 a social security contribution on bonus plans is introduced and the annual threshold is increased.

Target group reductions make hiring of certain employees cheaper through the reduction of social security contributions by employers. The target group reductions for older employers and those for young employees were thoroughly amended since the start of this year.

The new maximum amounts for tax year 2014 (income year 2013) were published by the Federal Government Service for Finance. We provide you hereafter with an overview of the most important amounts.

If suddenly the tax inspector rings at the door, what should you do. Especially don't panic. It is true that the inspector has extensive powers. But as a tax payer, you do not only have obligations, you also have rights. Which should be respected by the tax authorities. We list what the inspector can/cannot do and what you should do.

VAT paid for a company car that is used both for private and professional purposes is not fully deductible. This 'new rule' applies since beginning 2011. The calculation of the private part created quite some uncertainty. By means of an addendum the tax authorities have provided more explanation now. These rules apply as from 1 january 2013.

When selling immovable property, in principle stamp duties are due. In some cases the seller can opt to sell under VAT. We will explain which conditions have to be fulfilled and analyze the advantages and disadvantages.

Companies and non-for-profit organizations which have to deposit documents with the commercial court's registry use special forms for this. The fee they should pay when deposing documents depends on their legal form and the subject of the document. There is a fee for a formation deed and for amending deeds. These fees for publication in the Belgian Official Gazette are indexed annually. The new fees are applicable as from 1 January 2013.