Personal income tax return form now published for 2022 assessment year

The personal details and family situation field has been changed in response to the stricter rules for tax-free allowances. As from the 2022 assessment year, the allowance for dependent ascendants and siblings over 65 years of age will only be granted if that person is ‘care dependent’, for instance.

Income from foreign properties will be determined in the same way as for properties within Belgium from now on. To that end, the authorities sent out a questionnaire requiring a separate declaration of the cadastral income for foreign properties last year.

The tax return for the 2022 assessment year also includes the tax exemption for additional voluntary overtime, such as so-called ‘restart hours’, that went into force last year. Relatedly, we also note a temporary increase in the amount of overtime required to qualify for an overtime allowance, which has risen from 130 to 180 overtime hours insofar as this overtime took place in the second half of 2021.

Another coronavirus measure affecting the new tax return form relates to the bridging right for the self-employed. The EUR 598.81 one-time (gross) premium for self-employed individuals who received “at least six months of payments” due to bridging rights between 1 October 2020 and 30 April 2021 will be taxed separately at 16.5%, unless aggregation proves more beneficial.

We also note broader exemptions for certain types of foreign income. A specific ‘zero rate’ has been introduced for income from treaty countries that would normally be taxed separately in Belgium, but is exempt due to these treaties. As a result, this category of income exemption will not be subject to a progression clause.

Tax reductions

The tax reductions field has undergone quite a few changes as well:

• The ‘COVID-19 tax shelter’ now also applies to certain payments carried out in 2021.
• The big eye-catcher is definitely the new tax reduction for costs associated with the installation of a dedicated home EV charging station. To qualify for this tax reduction, such costs must have been incurred between 1 September 2021 and 31 August 2024. Eligible costs are capped at EUR 1,500 per charging point and per taxpayer. For costs incurred from 1 September 2021 through the end of 2022, the applicable tax reduction is 45%. After this date, the reduction rate will gradually decrease. Furthermore, this tax reduction cannot be requested for more than one taxable period.
• Another new item is the tax reduction for landlords with waived rental income amounting to at least 40% for tenants who were forced to close their business due to Covid-19 measures.
  

Tax credits

Various changes relating to tax credits have also been implemented:

• The one-time tax credit for the Flemish Win-win loan has been raised to 40% (from 30%) for loans concluded in 2021.
• You may also be entitled to claim a tax credit for a maximum of five years under the Flemish Region’s new Friends' Share scheme.
• In the Walloon and Brussels-Capital Regions, the Coup de Pouce and Proxi loans offer similar tax benefits.

Would you like to find out if you qualify for additional tax reductions or credits? Need help preparing your tax return? Please do not hesitate to contact one of our experts by means of the form below.