Search Q&A
Communal Taxes
All,
I have a question concerning Belgium commune/local taxes. I receive a pension that is taxed in a non-EU country but through a Tax Treaty the pension is only taxed by the non-EU county. In saying that, I would imagine that I might be only liable for commune/local taxes. Reading other sites, and what I could gleam through the Belgium tax authorities website, commune/local taxes are set by the regions and are calculated by the amount of Belgium Federal taxes paid, say 7% of the amount of tax. My question is that since I do not pay Belgium Federal tax would I pay a commune/local tax and if so how is it calculated. I understand that taxes in all countries are complicated and I will probably seek advise of the commune tax authority but I wanted to check if anyone else was or is in this position. Thank you.
Go to tax office. No one here can advise unless they work for the tax office.
It depends what the bi-lateral tax treaty says. Historically, they made no provision for payment of local income tax in Belgium on income which, under the treaty, was subject to primary taxation in its source country (typically a pension in respect of government employment in that country).
However, this is considered unfair, a Belgian living in the UK and in receipt of a pension in respect of service with the Belgian government would still have to pay UK Council Tax, for example, and so the treaties are gradually being revised to allow the Belgians to apply local income tax to such pre-taxed income. I believe that the UK treaty has already been revised.
You do, anyway, have to declare such income on your annual tax return, and it has always been set against your Belgian tax-free allowances. Once the new arrangements apply, the Belgian tax inspector will automatically apply local (but not Federal) income tax to it.
