New in the personal income tax return for the 2022 tax year
June 2022 – The time for the annual tax return is approaching. Although many items are already completed, it is still a tedious exercise. Some tax regimes have been abolished, but continue to apply for the past, while new ones have been added. All of this means that the declaration becomes a little more complex every year. What should you look out for this year?
Box II. Personal information and family responsibilities
You are entitled to an increase in the tax-free portion for your dependants. Children are not the only dependants. Ascendants (parents, grandparents) and collaterals may also be dependants.
For a disabled ascendant or collateral, the increase is doubled.
In 2020, the increase has been increased, but it is only granted if the ascendant or collateral is in a situation of dependence. This means that the degree of independence of this person must be at least nine points. The new condition applies from the 2022 tax year and is therefore reflected for the first time in this year's return.
However, a transitional regime is provided for in which the old (lower) amount continues to apply in the old regime (not dependent, but disabled person). It is therefore necessary to complete the correct boxes in the declaration.
Box III. Income from real estate
A very important new feature is the obligation to declare income from real estate abroad. Income from foreign sources must now be completed in the same section as income from Belgian sources.
In the second part of this box, you must also fill in the data relating to certain income from real estate abroad. This additional information is important because it allows you to benefit from an exemption for the income in question, if applicable.
Box IV. Salaries, wages, replacement income...
Box IV contains a new code for so-called stimulus hours (i.e. voluntary overtime hours worked beyond the normal quota of 100 voluntary overtime hours). It is expected that these data will be pre-completed.
Self-employed persons who, between 1 October 2020 and 30 April 2021, under certain temporary measures adopted following the coronavirus crisis, received at least six monthly financial benefits under the passerelle entitlement are entitled to a one-off premium of 598 81 euros (gross). This bonus must be declared as replacement income in box IV - and therefore not in part 2 of the return under profits and benefits!
Most foreign income benefits from a tax reduction. In principle, this is either an exemption with a progression reserve (if an agreement has been concluded) or a 50% exemption (if no agreement has been concluded). In exceptional cases, the exemption can also be total. This applies specifically to income received in a treaty country that should be taxed separately in Belgium, but which is to be exempted there under the applicable double taxation treaty. In this case, an exemption without reservation of progressiveness applies, which is achieved by declaring the income as income subject to separate taxation at a rate of 0%.
Box X. Tax reductions
There are also some changes in the framework of tax reductions.
For example, a new heading has been included for expenditure on the installation of a fixed charging point for electric cars in or near the home. Those who were quick to decide were still able to have such a charging point installed in 2021. If the invoice is dated 2021, a tax reduction of 45% can be granted.
A section has also been added for landlords who, following the Covid-19 crisis, have voluntarily waived rent and rental benefits for certain months. Two sets of codes have been provided, as the measure was originally planned to run from March to May 2021, but was later extended from June to September, subject to other conditions.
Many codes
The latest declaration again contains more codes than the previous one: 44 more to be precise. The declaration now contains more than 830 codes. Fortunately, many of these codes are pre-completed, but the codes that the taxpayer has to complete himself are precisely those where he has to make a choice or calculate the applicable limits himself. Simplifying the return will inevitably mean doing away with tax tinkering, but there will always be winners and losers.
