Belgian Pension and Tax

Annemos

These are the help sheet. We keep this and we do not submit it. This is for Belgian state pension which is not taxable 

I think you also have to show the UK pension income too, for information. Do you agree with that, reading your French version?

Annemos

And this is their tax return which we generate using that helpsheet above! 

To do the Belgian tax return you need the: 

Help Sheet      111-niet-inwoners-deel-1-voorbereiding-2020
The Tax Return    111-niet-inwoners-aangifte-2020
And their instruction   sheet  111-niet-inwoners-deel-1-toelichting-2020

Mariolanza

Thank you very much.  I believe I have these which I must deal with asap.

As a matter of interest,  I realised that when I completed the form last year, I wrote in the wrong figures, counting from January to December,  unlike April to April in England.  

Annemos

I think you would report amounts from Jan to Dec for any amounts shown, including any UK income totals. 



For anybody reading this who IS taxable in Belgium on their Belgian state pension, because they missed the protocol date....

I have only just started receiving mine and so have not had the tax return and a result yet, but here is how I think it will be taxed....

a) They pool all my other non-Belgian income to get to the tax bracket and so I think I get pushed into the top tax rate of 25 per cent. 

b) I also get no deductions because less than 75 per cent of all my income comes from Belgium. (That's another reason why they ask us for the non-Belgian income!) 

c) I also think I might get hit with a nominal 7 per cent commune tax

d) There is no withholding at source on my Belgian state pension. 



AND i shall now have to do a UK tax return to attach a statement to say that I have had a Belgian state pension, but it is exempt from UK tax! 

Mariolanza

What a shambles!!! 

Why are they charging you commune tax as you live in England??! That definitely doesn't sound right at all. Are you sure?

This whole thing is totally wrong, where the Belgian state tax you on income you receive from DWP??!   I understand they would tax your Belgian income only but your whole income!

Sometimes,  I wish I had never spplied for my Belgian pension.  It's more grief than anything else...

Annemos

Well I have UK Belgian dual nationality. You could have both in the old days after marriage. 

So I think they will assign me a Commune tax rate. 


No they are not taxing my UK pension income (thanks goodness) , but they are pretending it is there to find out which tax bracket I fall into. 

So my Belgian income is M
My UK pension is N

Only M is taxed as income. But when they look at the tax tables for the tax rate percentage to apply, they look at where "M plus N" falls into! That pushes me up the tax bands! 

That's what I think they will be doing. 




For the other folks who might be following this: 


Mariolanza started receiving the Belgian state pension before Jan 1 2013 and so it is wholly taxable in UK and will never be taxed in Belgium (Article X1 (b) 

Me....I started getting mine after Jan 1 2013, so I fall into (a) and mine will always be taxed in Belgium and never in the UK. 


It seems that both of us have to do BOTH UK and Belgian tax returns, though!

One tax return taxes the income and the other tax return reports it but then exempts it from tax under the double tax treaty. 





Effective in UK from 1 April 2013 for corporation tax, from 6 April 2013 for income tax and capital gains tax and from 1 January 2013 for Petroleum Revenue Tax Effective in Belgium from 1 January 2013

PROTOCOL AMENDING THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF THE KINGDOM OF BELGIUM FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL GAINS, SIGNED AT BRUSSELS ON 1 JUNE 1987

ARTICLE XI The text of Article 18 of the Convention is deleted and replaced by the following: “Subject to the provisions of Article 19,
 (a) pensions and other similar remuneration arising in a Contracting State (BELGIUM) and paid to a resident of the other Contracting State (UK) shall be taxable only in the first-mentioned State (BELGIUM);

 (b) however, where pensions and other similar remuneration under a pension scheme were first credited or paid before 1 January in the calendar year next following that in which the first Protocol to this Convention entered into force (Assesssment Year starting Jan 1 2014, Income Year starting Jan 1 2013) , all payments under that scheme shall be taxable only in the other State (UK).”

nigelbb

I'm just glad that my overseas pensions come from France which follows the normal OECD template for Dual Tax Treaties & has state pensions taxable only in your country of residence.

Mariolanza

I'm sure you are very happy about that! Sometimes,  I wish I had never applied for it to avoid the headaches!

Annemos

ALERT I HAVE CHANGED MY MIND HERE......

They have Assessment Year 2014: for Income 2013  

Effective date:  The new treaty provisions will be effective as from 1 January 2013 (for Belgian withholding tax) and as from assessment year 2014 (financial years ending on or after 31 December 2013) for all other Belgian taxes.

I think if it is paid in 2013 it hits the new rules. 

HMRC says this too. 

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Attachment that I think can be attached to the Belgian Tax Return, for people who first received their Belgian state pension up to and including December 31, 2013  2012

Treaty Statement regarding non-taxable Belgian State Pension Income

Name xxxxx .....      Belgian Tax Number   xxxxxxx

Income for year 2021 (Income for 2020)       Amount xxxxxx euros

The first date this Belgian State pension started to be paid out was XXXXX  (Date up to and including December 31, 2012.) 

Under Article XI (b) of the Protocol to the Belgian- UK Double Tax Covention, which is effective from January 1, 2013, this income is NOT taxable in Belgium 

This income is only taxable in the UK




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And on the Belgian tax return I think you enter your Belgian State pension income in Area XIII  A 1 a)

Code 1330-28

Annemos

ALERT I HAVE CHANGED MY MIND HERE......

They have Assessment Year 2014: for Income 2013  

Effective date:  The new treaty provisions will be effective as from 1 January 2013 (for Belgian withholding tax) and as from assessment year 2014 (financial years ending on or after 31 December 2013) for all other Belgian taxes.

I think if it is paid in 2013 it hits the new rules. 

HMRC says this too. 

=============================================


And now the attachment to be put on the UK tax return for people who first received their Belgian state pension starting from January 1, 2014  2013

Treaty Statement regarding non-taxable Belgian State Pension Income on the UK Tax Return

Name xxxxx .....      UK tax number   xxxxxxx

Income for year XXX        Amount xxxxxx pounds

The first date this Belgian State pension started to be paid out was XXXXX  (Date after December 31, 2012.) 

Under Article XI (a) of the Protocol to the Belgian- UK Double Tax Covention, which is effective from April 6, 2013, this income is taxable only in Belgium 

This income is NOT taxable in the UK



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And on the Belgian tax return I think you enter your Belgian State pension income in Area VI   A   1   a)  1) 

Code 1228-33