According to Belgium tax law, certain benefits in kind are valued on a lump-sum basis. However, in some cases, the beneficiary of the benefit in kind pays a private contribution to the employer granting the benefit. The question thus arises to what extent this private contribution reduces the taxable basis of the benefit or may even eliminate the taxable basis. New case law sheds some interesting new light on this matter.
The Belgium tax authorities have announced what target taxpayers will be high on their radar screen for tax audit purposes in the coming months. Who is on the hit list and how to prepare yourself for a tax audit?
The Belgian VAT authorities have recently clarified their point of view regarding a number of special situations in relation to VAT grouping. On a number of topics, they have clearly also taken a more relaxed position. Hereafter we will discuss the most relevant clarifications.
Start-up companies are often in a VAT credit position as a result of the VAT deduction on the expenses and investments made at the start of their activity. Depending on the month in which these costs are made, it can take up to 5 months before this VAT credit is refunded. To prevent liquidity issues for start-up companies, the Belgian government has now decided that as from 1 January 2020 newly VAT registered businesses will be able to obtain a VAT refund on a monthly basis.
Following the Law of 15 April 2018, Belgium enterprise legislation has been amended. This has an impact on what income needs to be reported on income statements 281.50 that need to be timely filed with the Belgium tax authorities. What has changed?
Most car expenses are only partially deductible for corporate tax purposes. In addition, that same company generally also offers a company car to its employees and Directors implying that the latter are taxable on a benefit in kind for Belgium personal tax purposes. To what extent can such benefit in kind reduce the taxable basis of disallowed car expenses for corporate tax purposes?
As of May 2019, new Belgium company law rules have entered into force, be it with a transition period until ultimately 31 December 2023. One of the more fundamental new Belgium company law rules is the introduction of the “statutory seat rule” which replaces the existing “real seat rule”. What are the main Belgium tax and accounting implications?
What should you do when you have received a credit note from a supplier, but do not receive the reimbursement of the credited amount due to liquidity problems of the supplier? According to a recent decision of the European Court of Justice (C-691/17), the VAT on this credit note should not be a cost to you.
The European Court of Justice (case C-201/18) has recently decided that a sale-and-leaseback transaction in some cases constitutes one financial transaction for VAT purposes, rather than two separate transactions. When such a transaction concerns capital goods, this can imply that no VAT adjustment should be performed by the transferor, even if the transfer was not subject to VAT.
According to the Flemish tax authorities (“VLABEL”), as of June 2017 Flemish succession duties would be due in case the interest of a partnership (i.e. maatschap in Dutch or foundation in French) was donated with usufruct reserve, but without registration in Flanders. In that case, a patrimonial company was involved. However, in a ruling decision dated 19 February 2018 (nr. 17054) VLABEL came to a totally different conclusion when a family business was involved.