belgiquelex.be - Carrefour Bank of Legislation

8 MAI 2014. - An Act to amend the Income Tax Code 1992 following the introduction of the additional regional tax on the tax of natural persons referred to in Part III/1 of the special law of 16 January 1989 on the financing of the Communities and Regions, to amend the rules on the tax of non-residents and to amend the law of 6 January 2014 on the Sixth Reform of the State concerning the matters referred to in Article 78 of the Constitution (1)

PHILIPPE, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
CHAPTER 1^er. - General provision
Article 1^er. This Act regulates a matter referred to in Article 78 of the Constitution.
CHAPTER 2. - Application of regional tax rules to non-resident tax
Art. 2. In Title V of the Income Tax Code 1992, a chapter V is inserted entitled "Chapter V - Application of Regional Tax Rules".
Art. 3. In title V, chapter V, of the same Code, inserted by section 2 of this Act, an article 248/1 is inserted, as follows:
"Art. 248/1. Tax reductions that, on the basis of Article 6, § 2, paragraph 1^er, 4°, of the special law of January 16, 1989 for the financing of the Communities and Regions, as it existed before being amended by the special law of January 6, 2014, are granted by a region, to taxpayers referred to in section 227, 1°, when they meet each of the following conditions:
1° the taxpayer is a resident of another member state of the European Economic Area;
2° the taxpayer has obtained or collected taxable professional income in Belgium that is at least 75 p.c. of all of its professional income obtained or collected during the taxable period of Belgian and foreign source;
3° the taxpayer is in accordance with sections 248/2 and 248/3, located in the region that grants the reductions. ".
Art. 4. Section 248/1 of the same Code, inserted by section 3 of this Act, is replaced by the following:
"Art. 248/1. In order to take into account regional tax provisions, a taxpayer referred to in section 227, 1°, for whom the tax is calculated in accordance with section 244, is located in a region in accordance with sections 248/2 and 248/3. ".
Art. 5. In title V, chapter V, of the same Code, inserted by section 2 of this Act, an article 248/2 is inserted, as follows:
"Art. 248/2. § 1^er. For the purposes of this chapter, non-residents referred to in section 227, 1° are located in a single region.
Only taxable professional income in Belgium that is effectively regulated in accordance with Articles 232 and 248, §§ 2 and 3, shall be taken into account for the purposes of this chapter.
§ 2. To locate a non-resident in a region, the following rules are applied successively:
1° where the non-resident obtained his taxable professional income in Belgium in a single region, he is supposed to be located in that region;
2° where the non-resident obtained his taxable professional income in Belgium in several regions, he is expected to be located in the region where the highest net professional income - calculated at two decimals - was obtained;
3° where the non-resident has obtained his or her taxable professional income in Belgium in several regions and has either obtained in each region the same net professional income - calculated at two decimals - or obtained in two regions the same highest net professional income, it is expected to be located in the region where the largest number of working days actually preceded has been realized;
4° where the non-resident has obtained the same highest net professional income in more than one region and in each of these regions it has taken the same number of actual working days, it is expected to be located in the area in which it was located during the previous taxable period.
For the purposes of this section, a net professional income is defined as professional income after deduction of professional costs and before application of economic exemptions and deduction of professional losses.
§ 3. When a common taxation is established:
1° both spouses are located in the same region;
2° all net professional income of both spouses shall be taken into consideration for the application of § 2, paragraph 1^er1° and 2°;
3° all working days actually preceded by both spouses shall be taken into consideration for the application of § 2, paragraph 1^erThree. ".
Art. 6. In title V, chapter V, of the same Code, inserted by section 2 of this Act, an article 248/3 is inserted, as follows:
"Art. 248/3. § 1^er. To determine in which region a professional income has been obtained, the rules referred to in paragraph 2 are applied.
§ 2. Compensation for workers, other than compensation in total or partial compensation for a temporary loss of remuneration, is expected to be obtained:
1° in respect of the remuneration of a worker who fulfils the most important part of his or her obligations to his or her employer in the same place of work in Belgium, in the region where the usual place of work is located.
A worker who exercises his or her professional activity on board a means of transport operated in national or international transport of goods or persons, is expected to have his or her usual place of work at the place in Belgium where he or she normally begins and ends a period of service or a series of periods of service;
2° in respect of the remuneration of a worker who has no usual place of work within the meaning of 1°: in the area where the employer's establishment is located where or from which the worker receives his instructions;
3° in respect of remuneration that cannot be located on the basis of 1° and 2°:
- in the region where professional activity has actually been carried out, when professional activity is carried out in Belgium;
- in the area where the employer is established, in the other cases.
The remuneration of business leaders, other than compensation in total or partial compensation for a temporary loss of remuneration, is expected to be obtained:
1° in respect of remuneration obtained for the exercise of a term of office of administrator, manager, liquidator or similar functions in the region where the legal person is established;
2° in respect of other remuneration in the region determined in accordance with the rules for remuneration of workers referred to in paragraph 1^er.
The benefits, other than compensation in total or partial compensation for a temporary loss of profits, are expected to be obtained:
1° in the region where the Belgian establishment is located to which the profits can be attributed;
2° in respect of the income of the alienation or rental of a real property, as well as the establishment or assignment of real rights on a real property that cannot be attributed to a Belgian establishment in the region where the real property is located;
3° in respect of the benefits resulting from the quality of associate in a society, grouping or association that is supposed to be an association without legal personality under Article 29, § 2, in the region in which is established, society, grouping or association.
Profits, other than compensation in total or partial compensation for a temporary loss of profits, are expected to be obtained:
1° in the area where the property is located to which the profits can be attributed;
2° in respect of incomes that cannot be located on the basis of 1°, in the area where professional activity was exercised.
The profits and profits of an earlier activity are expected to be obtained in the region determined in accordance with the rules for profits or profits, as the case may be.
The remuneration of helping spouses is expected to be obtained in the region where the spouse who assigns remuneration obtains profits or profits.
Compensation for a total or partial compensation for a temporary loss of income is expected to be obtained:
1° in respect of compensation awarded by a region, in the area that assigns compensation;
2° in respect of other allowances:
- in the region where the earnings of the occupational activity for which the allowances are paid have been obtained in the last place in accordance with the rules set out in the preceding paragraphs;
- in the region where the compensation debtor is established, where the allowances are not paid for the performance of a professional activity.
Pensions, rents and allowances are expected to be obtained:
1° in the region where, in accordance with the rules set out in the preceding paragraphs, the highest professional net income was obtained or, in the case of application of Article 248/2, § 2, paragraph 1^er, 3°, the largest number of days of work actually presumed was realized, in the taxable period preceding the taxable retirement period or the finding of the taxpayer's permanent disability;
2° subject to 1°, in the region where, in accordance with the rules set out in the preceding paragraphs, the professional income that gave rise to pension rights;
3° subject to 1° and 2°, in the area where the pension debtor is established, when:
- professional incomes that have given rise to pension rights are not related to a professional activity carried out in Belgium;
- it cannot be demonstrated in which region the professional income that gave rise to pension rights has been obtained;
- pension is not related to the exercise of a professional activity.
The revenues referred to in Article 228, § 3, are expected to be obtained in the region where the income debtor is established.
Art. 7. Sections 2, 3, 5 and 6 are applicable from the 2014 taxation year.
Section 4 is applicable from the 2015 taxation year.
CHAPTER 3. - Amendments to the Income Tax Code 1992 for the introduction of the additional regional tax on the tax of natural persons
Section 1^re. - Amendments to the provisions regarding the tax of natural persons
Sub-section 1^re. - Definitions
Art. 8. In section 2 of the Income Tax Code 1992, replaced by the Act of 10 August 2001 and amended by the Acts of 17 May 2004, 15 December 2004, 27 December 2006, 11 December 2008 and 30 July 2013, the following amendments are made:
1° § 1^er, 1°, paragraph 1^era, is replaced by the following:
"(a) physical persons who have established:
- their home in Belgium;
- when they have no domicile in Belgium, the seat of their fortune in Belgium;
2° in § 1^er, 1°, paragraph 2, the words "or the seat of their fortune" are repealed;
3° paragraph 1^er is completed by the 15th grade, as follows:
15° Clean housing
The dwelling referred to in Article 5/5, § 4, paragraphs 2 to 8, of the special law of 16 January 1989 on the financing of the Communities and Regions. ";
4° it is supplemented by a paragraph 3, which reads as follows:
§ 3. The terms "state tax", "reduced state tax", "federal natural persons tax", "regional additional centers", "regional tax reduction", "regional tax increase", "regional tax reduction", "regional tax credit", "regional tax credit", "regional physical persons tax" and "total tax" have for the purposes of this Code and the decrees taken in its execution, the meaning given to them in Title III/1 of the special law 1989 ".
Sub-section 2. - Changes in the tax base of natural persons
Art. 9. In Article 7, § 1^er, 1°, a, first dash, of the same Code, as amended by the laws of 30 March 1994, 27 December 2004 and 22 December 2009, the words "the dwelling referred to in Article 12, § 3" are replaced by the words "clean dwelling".
Art. 10. In section 9 of the same Code, the following amendments are made:
1° before the single paragraph, which becomes paragraph 2, a paragraph shall be inserted, as follows:
"For the purposes of this section and subject to Article 494, §§ 3 and 6, a cadastral income resulting from an assessment or reassessment is expected to exist from the day on which the event in which the declaration is prescribed by Article 473, occurred."
2° in the single paragraph, which became paragraph 2 by 1°, the words "expressed in months" are replaced by the words "expressed in days".
Art. 11. Section 12, § 3, inserted by the Program Law of December 31, 2004 and amended by the Acts of December 27, 2005 and April 25, 2007, is replaced by the following:
§ 3. The income of the clean dwelling is exempt.".
Art. 12. In section 14 of the same Code, replaced by the Act of 6 July 1994 and amended by the Acts of 10 August 2001 and 27 December 2004, the following amendments are made:
1st paragraph 1^er, 1°, is replaced by the following:
"1° the interest of debts contracted specifically for the acquisition or retention of real property whose income is included in taxable real property income after the application of section 12, provided that interest in a debt contracted for a single real property may be deducted from all real estate revenues;"
2° in paragraph 1^er, 2°, the words ", relating to the properties referred to in 1°" are inserted between the words "like real estate rights" and the words ", excluding";
3° between paragraph 1^er and paragraph 2, which becomes paragraph 3, insert a paragraph, which reads as follows:
"When the real property for which the debt referred to in paragraph 1^er, 1°, was contracted or for which royalties referred to in paragraph 1^er, 2° were paid, after application of section 12 of the taxable real property income only during a part of the taxable period, the interest and royalties referred to in paragraph 1^er, shall be deductible only when they have been paid during the portion of the taxable period during which the property has produced taxable real property income. ".
Art. 13. In Article 19, § 1^erParagraph 1^er, 3°, of the same Code, replaced by the Act of 27 December 2004, a) is replaced by the following:
"(a) a contract that provides a guaranteed return and none of which has given rise to:
- a long-term savings tax reduction under sections 145¹ to 145¹⁶;
- a regional tax reduction or a regional tax credit;".
Art. 14. Section 31, paragraph 3, of the same Code, replaced by the Act of 28 December 1992, is repealed.
Art. 15. In section 34 of the Code, as amended by the Acts of 28 December 1992, 19 July 2000, 28 April 2003, 27 December 2004, 22 December 2008 and 28 July 2011, the following amendments are made:
1° in § 1^er, 2°, paragraph 1^er, d, words "at articles 104, 9°, and 145¹, 2°. " are replaced by the words "at Article 145¹2°; ";
2° § 1^er, 2°, paragraph 1^er, is completed by an e), as follows:
"e) contributions for which a regional tax reduction or a regional tax credit has been granted. ";
3° in paragraph 5 the words "in articles 104, 9°, and 145¹, 2°, "are replaced by the words "at § 1^er, 2°, paragraph 1^er, d and e, ".
Art. 16. In section 39, § 2, 2°, of the same Code, replaced by the Act of 28 April 2003 and amended by the Acts of 27 December 2004 and 27 December 2005, (a) is replaced by the following:
"(a) for which no exemption was made under the provisions applicable prior to the 1993 taxation year for which the tax reduction provided for in section 145¹, 2°, was not granted and for which no regional tax reduction or regional tax credit was granted; "
Art. 17. In section 87, paragraph 1^er, of the same Code, replaced by the Act of 10 August 2001, the words "unless the taxation is increased" are replaced by the words "unless the tax increased state of the income tax referred to in 17, § 1^er, 1° to 3° and 90, 6° and 9°, and to surplus-values on taxable movable securities and securities on the basis of Article 90, 1°, taken together for both spouses, is increased".
Art. 18. Section 88, paragraph 2, of the same Code, inserted by the Act of 10 August 2001, is replaced by the following:
"This provision does not apply where the State tax increased from the income tax referred to in sections 17, § 1^er, 1° to 3° and 90, 6° and 9°, and to surplus-values on taxable movable values and securities on the basis of Article 90, 1°, taken together for both spouses, is increased."
Art. 19. Section 93bis, 1°, of the same Code, inserted by the Royal Decree of 20 October 1996 and replaced by the Act of 27 December 2005, is replaced by the following:
"1° of the uninterrupted disposition of the dwelling that was the taxpayer's own dwelling for a period of not less than 12 months preceding the month in which the alienation occurred. However, a period of up to 6 months, during which the dwelling must remain unoccupied, may be inserted between the period of at least 12 months and the month in which the alienation occurred;".
Art. 20. In section 104 of the same Code, last amended by the Act of 13 December 2012, the following amendments are made:
1° the opening sentence is replaced by the following:
"The following expenses are deducted from all net revenues, to the extent that they were actually paid during the tax period:"
2° 9° is repealed.
Art. 21. Section 105 of the Code, replaced by the Act of 24 December 2008 and amended by the Act of 13 December 2012, is replaced by the following:
"Art. 105. Where a common taxation is established, the deductions referred to in section 104 shall be charged as follows:
1° the expenses that are incurred jointly by the two spouses are charged, first of all, according to the proportional rule over all the net income of the two spouses;
2° then, the expenses of which one of the spouses is personally obligated are charged by priority over all the net income of the spouse and the potential balance is charged to all the net income of the other spouse."
Art. 22. In Title II, chapter II, section VI, of the same Code, the "E. Deduction for single dwelling" section which includes sections 115 and 116, replaced by the Act of 27 December 2004 and amended by the Acts of 27 December 2005, 27 December 2006, 25 April 2007 and 24 December 2008, is repealed.
Art. 23. In section 131 of the same Code, last amended by the Act of 8 June 2008, a paragraph is inserted between paragraph 1^er and paragraph 2, which becomes paragraph 3, as follows:
"In case of application of articles 145³⁷ or 539 and where the taxpayer's taxable income exceeds EUR 15,220, increased by the difference between the base amount referred to in paragraph 1^er, 1°, and the base amount referred to in paragraph 1^er, 3°, the tax-exempt base amount is, by derogation from paragraph 1^erequal to EUR 4,095, plus the positive difference between:
(a) the difference between the base amount referred to in paragraph 1^er, 1°, and the base amount referred to in paragraph 1^er, 3°
and
(b) the positive difference between:
- the taxable income reduced from the amount that, in principle, falls into consideration for the application of the tax reductions referred to in section 145³⁷ or 539, possibly limited to the maximum amount set out in these articles
and
- EUR 15,220.".
Subsection 3. - Calculation of the tax of natural persons
Art. 24. Article 145¹ the same Code, inserted by the Act of 28 December 1992 and amended by the Acts of 17 November 1998, 25 January 1999, 17 May 2000, 24 December 2002, 28 April 2003, 27 December 2004, 27 December 2005 and 27 December 2006, the following amendments are made:
1° in 2°, the words "and to the extent that this capital is not used for the reconstruction or guarantee of a mortgage contracted for the dwelling referred to in section 104, 9°" are repealed;
2° in the 3°, the words "other than the dwelling referred to in section 104, 9°" are replaced by the words "other than the taxpayer's own dwelling".
Art. 25. Article 145⁴ the same Code, inserted by the Act of 28 December 1992 and amended by the Acts of 20 September 2001, 24 December 2002 and 22 December 2008, is supplemented by a 4°, as follows:
"4° that the capital constituted in the performance of the life insurance contract does not serve to replenish or guarantee a loan contracted to acquire or retain the dwelling that is the taxpayer's own home at the time of payment of premiums or contributions."
Art. 26. Article 145⁵ the same Code, replaced by the Act of 17 May 2000 and amended by the Act of 27 December 2004, is supplemented by a paragraph that reads as follows:
"The payments referred to in Article 145¹, 3°, do not come into account for the reduction when the housing for which the mortgage was contracted is the taxpayer's own home at the time the payments were made. ".
Art. 27. Article 145⁶Paragraph 1^erin the same Code, replaced by the Act of 27 December 2004 and amended by the Act of 27 December 2005, the following amendments are made:
1° in the first dash, the words ", excluding professional income taxed in accordance with Article 171," are inserted between the words "professional income" and the words "and 6 p.c. of surplus";
2° the second dash is replaced by the following:
"- and on the other hand the amount of expenses made to acquire or retain the own dwelling for which reductions referred to in Articles 145³⁷ and 145³⁹ may be granted, without taking into account any increases referred to in section 145³⁷§ 2, paragraphs 2 and 3.
Art. 28. Article 145⁷ of the same Code, inserted by the law of 28 December 1992 and amended by the Royal Decrees of 20 July 2000 and 13 July 2001, the current text of which becomes paragraph 1^er, is supplemented by paragraph 2, as follows:
"§2. Where the shares or shares are subject to a transfer, other than a transfer by death, within the five years of their acquisition, the total tax relating to the income of the taxable period of the transfer, shall be increased by an amount equal to as many times one sixtieth of the tax reduction obtained in accordance with subsection 1^erthat there remain whole months until the expiry of the 60-month period."
Art. 29. Article 145²³ the same Code, inserted by the Act of 30 March 1994 and replaced by the Act of 13 December 2012, is replaced by the following:
§ 1^er. When a common taxation is established, the tax reduction referred to in section 145²¹ is distributed proportionally based on income taxed in accordance with section 130 of each spouse in all income taxed in accordance with section 130 of the two spouses.
§ 2. Part of the tax reduction referred to in section 145²¹ Expenditures for benefits paid with denominations, which cannot be charged on regional additional cents and regional tax increases or on the tax balance of federal natural persons, are converted to a refundable regional tax credit.
This subsection does not apply where the taxpayer's taxable income, excluding revenues that are taxed in accordance with section 171, exceeds the amount referred to in section 131, paragraph 1^er1°.
This subsection also does not apply to a taxpayer that collects professional income that is conventionally exempt and does not intervene in computing the tax for the taxpayer's other income."
Art. 30. Article 145²⁴ the same Code, inserted by the Act of 10 August 2001 and last amended by the Act of 28 December 2011, the amendments are made:
1° paragraph 1^er is replaced by the following:
§ 1^er. Reductions for expenditures made to save energy that were paid in 2011 and 2012 and that may be deferred from the three taxable periods following the one in which expenditures were actually made in accordance with the provisions that were applicable to these expenditures are granted within and in accordance with the terms and conditions set out in that subsection.
The total amount of the various tax reductions may not exceed by taxable period 2,000 euros per dwelling. However, this amount is increased by 600 euros to the extent that this increase applies exclusively to a deferred tax reduction for expenses for the installation of photovoltaic panels to transform solar energy into electrical energy.
Where the total amount of the deferred tax reductions exceeds the limit referred to in paragraph 2, the deferable portion of the deferred tax reductions may be deferred.
Where a common taxation is established, the tax reduction shall be apportioned proportionally to the income tax imposed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130.
The portion of the spending tax reductions to save energy referred to in paragraph 1^er, 1°, and 4° to 7°, as applicable for the tax period during which the expenses were paid, which was not charged after application of section 178/1, is converted to a refundable tax credit.
The previous paragraph does not apply to a taxpayer that collects business income that is conventionally exempt and does not intervene in computing the tax for other revenues.
The King shall determine the order in which the reductions referred to in this paragraph shall be charged. ";
2° in § 3, paragraph 1^erthe words "to the taxpayer referred to in § 1^erParagraph 1^er," are repealed;
3° § 3, paragraph 3, b, is replaced by the following:
"(b) for which the application of articles 14, 526, § 1^er, or 539, or a regional tax reduction or a regional tax credit has been requested. ";
4° § 3, paragraph 4, is replaced by the following:
"When a common taxation is established, the tax reduction shall be apportioned proportionally to the income tax imposed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130. ".
Art. 31. Article 145²⁵ and amended by the Act of 8 April 2003, 9 July 2004, 14 April 2011 and 13 December 2012, the following amendments are made:
1° in paragraph 4, c) is repealed;
2° Paragraph 7 is replaced by the following:
"When a common taxation is established, the tax reduction shall be apportioned proportionally to the income tax imposed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130. ".
Art. 32. In heading II, chapter III, section I^re, of the same Code, sub-section IIsepties "Reduction for the acquisition of bonds issued by the Social and Sustainable Economy Fund - Resuming of reduction", which includes section 145²⁶, inserted by the Act of 8 April 2003, is repealed.
Art. 33. In heading II, chapter III, section I^re, of the same Code, sub-section IIocties "Reduction for the acquisition of obligations issued by the Starters Fund - Resuming of the reduction", which includes section 145²⁷, inserted by the Act of 8 April 2003 and amended by the Act of 22 December 2003, is repealed.
Art. 34. In section 145²⁸§ 1^er, of the same Code, restored by the Act of 22 December 2009 and amended by the Acts of 23 December 2009 and 13 December 2012, the last paragraph is replaced by the following:
"When a common taxation is established, the tax reduction shall be apportioned proportionally to the income tax imposed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130. ".
Art. 35. In heading II, chapter III, section I^re, of the same Code, sub-section IIdecies "Reduction for the acquisition of bonds issued by the Global Energy Cost Reduction Fund - Resuming Reduction", which includes section 145²⁹, inserted by the law of 27 December 2005, is repealed.
Art. 36. Article 145³⁰ the same Code, inserted by the law of 27 December 2006 and amended by the laws of 22 December 2009, with respect to the Dutch text, and 13 December 2012, the following amendments are made:
1° in paragraph 2, c, the words "of articles 145²⁴ or 145²⁵"are replaced by the words "of Article 145²⁵";
2° Paragraph 5 is replaced by the following:
"When a common taxation is established, the tax reduction shall be apportioned proportionally to the income tax imposed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130. ".
Art. 37. Article 145³¹ the same Code, inserted by the Act of 27 December 2006 and amended by the Acts of 8 July 2008, 22 December 2009 and 13 December 2012, the following amendments are made:
1° in paragraph 2, c, the words "of articles 145²⁴," are replaced by the words "articles";
2° Paragraph 5 is replaced by the following:
"When a common taxation is established, the tax reduction shall be apportioned proportionally to the income tax imposed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130. ".
Art. 38. In section 145³², § 2, of the same Code, inserted by the law of June 1, 2008 and replaced by the law of December 31, 2009, the words "tax for" are replaced by the words "total tax for".
Art. 39. Article 145³³§ 1^erin the same Code, inserted by the Act of 13 December 2012, the following amendments are made:
1° in paragraph 4, the words ", excluding revenues that are taxed in accordance with section 171" are inserted between the words "all net income" and the words "nine 250,000 euros";
2° Paragraph 5 is replaced by the following:
"When a common taxation is established, the tax reduction shall be apportioned proportionally to the income tax imposed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130. ".
Art. 40. Article 145³⁴Paragraph 7 of the same Code, inserted by the Act of 13 December 2012, is replaced by the following:
"When a common taxation is established, the tax reduction shall be apportioned proportionally to the income tax imposed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130. ".
Art. 41. Article 145³⁵Paragraph 8 of the same Code, inserted by the Act of 13 December 2012, is replaced by the following:
"When a common taxation is established, the tax reduction shall be apportioned proportionally to the income tax imposed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130. ".
Art. 42. Article 145³⁶ the same Code, inserted by the Act of 13 December 2012, the following amendments are made:
1° paragraph 2, c, is replaced by the following:
"c) consider the application of Articles 145²⁵, 145³⁰ and 145³¹"
2° Paragraph 5 is replaced by the following:
"When a common taxation is established, the tax reduction shall be apportioned proportionally to the income tax imposed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130. ";
Paragraph 6 is replaced by the following:
"The expenses referred to in paragraph 1^er are expenses that, after prior agreement of the competent authority, are exposed for the preservation of these or part of them, for their recovery in their previous state or for their historical, artistic, scientific or aesthetic valuation. ";
4° it is supplemented by two subparagraphs, as follows:
"For the purposes of this article, built buildings, parts of built buildings or sites are considered accessible to the public when they are recognized as such by the competent authority.
The King determines the terms and conditions for applying the tax reduction.".
Art. 43. In heading II, chapter III, section I^re, of the same Code, it is inserted a sub-section IIoctodecies, entitled "Sub-section IIoctodecies - Tax reductions for the clean housing".
Art. 44. In heading II, chapter III, section I^re, sub-section IIoctodecies, of the same Code, inserted by section 43, it is inserted an article 145³⁷, as follows:
"Art. 145³⁷. § 1^er. A tax reduction is granted for the following expenses that were actually paid during the tax period:
- the interests and amounts assigned to the amortization or replenishment of a mortgage specifically contracted to acquire or maintain a single dwelling;
- the contributions of a supplementary insurance against the old age and premature death paid by the taxpayer on a final basis to constitute an annuity or capital in the event of a life or death in the event of a life insurance contract that the taxpayer has entered into individually and that is used exclusively for the reconstruction or guarantee of such a mortgage loan.
Interests, payments and contributions referred to in paragraph 1^er, come into account for the reduction only when the dwelling for which these expenses were made is the taxpayer's own dwelling at the time that these expenses were made.
§ 2. The amount of interest, amounts and contributions referred to in paragraph 1^er considered for the tax reduction may not exceed, by taxpayer and by taxable period, 1,500 euros.
The amount referred to in paragraph 1^er is increased by 500 euros during the first ten taxable periods from the conclusion of the loan contract.
The amount referred to in paragraph 2 is increased by 50 euros when the taxpayer has three or more dependent children at 1^er January of the year following that of the conclusion of the contract of the loan.
For the purposes of paragraph 3, children considered to be disabled are counted for two.
The increases referred to in paragraphs 2 and 3 are not applied from the first taxable period during which the taxpayer becomes the owner, owner, emphyteote, superficial or usufructier of a second home. The situation is appreciated on December 31 of the taxable period.
When a common taxation is established and both spouses have made expenditures that qualify for tax reduction, spouses may freely allocate these expenses within the limits referred to in the preceding paragraphs.
§ 3. The reduction is calculated at the highest tax rate applied to the taxpayer and referred to in section 130, with a minimum of 30 p.c. In the event that the expenditures to be considered for the reduction relate to more than one tax rate, the tax rate applicable to each part of these amounts and contributions should be retained.
§ 4. The tax reduction may be converted to a refundable tax credit when it is simultaneously satisfied with the following conditions:
1° the loan was contracted before 1^er January 2015;
2° a common taxation is established;
3° the taxpayer's income taxed in accordance with section 130 is less than the amount of the exempted quotity assigned to it under section 131 and the amount for which the tax reduction may be granted, determined in accordance with subsection 1^er and 2.
However, the tax credit is limited to the positive difference between:
1° the amount of the tax reduction determined in accordance with paragraphs 2 and 3, with the exception of the application of the minimum rate of 30 p.c. for the expenses referred to in paragraph 1^erlimited if applicable to the amount of income taxed under section 130 and
2° the sum:
- the amount of the tax reduction charged to the total of the additional cents and regional tax increases, reduced regional tax reductions, and the tax balance of the federal natural persons;
- the amount of tax reductions granted under sections 146 to 154, 155 and 156;
- the amount of other regional tax reductions charged to the total of additional cents and regional tax increases, reduced regional tax reductions, and the tax balance of federal natural persons;
- the amount charged to the tax reductions referred to in section 145¹ to 145¹⁶, 145²⁴, 145²⁸, 145³² to 145³⁵ and 154bis.
The amount determined in accordance with the preceding paragraph is further limited to the total tax due by the other spouse.".
Art. 45. In heading II, chapter III, section I^re, sub-section IIoctodecies, of the same Code, inserted by section 43, it is inserted an article 145³⁸, as follows:
"Art. 145³⁸. § 1^er. The reduction referred to in section 145³⁷ is granted the following conditions:
1° the expenses must be made for the dwelling that is the taxpayer's single dwelling on December 31 of the year of the conclusion of the borrowing contract and that it occupies personally on that same date;
2° the mortgage and life insurance contract referred to in section 145³⁷§ 1^er, have been contracted by the taxpayer to an establishment with its seat in the European Economic Area to acquire or retain its own dwelling in a Member State of the European Economic Area;
3° the mortgage has been contracted from 1^er January 2005 and is at least 10 years old;
4° the life insurance contract was signed:
a) by the taxpayer who has ascertained exclusively on his head;
(b) before age 65; contracts that are extended beyond the original term, rein force, processed, or increased, while the insured has reached the age of 65, are not considered to be subscribed before that age;
(c) for a minimum period of 10 years when providing life benefits;
5° the benefits of the contract referred to in 4° are stipulated:
(a) in the event of life, for the benefit of the taxpayer from the age of 65;
(b) in the event of death, for the benefit of persons who, following the death of the insured, acquire the full property or usufruct of that dwelling.
For the purposes of paragraph 1^er, 1°, it is not taken into account, to determine whether the taxpayer's dwelling is the only dwelling he occupies personally on December 31 of the year of the conclusion of the borrowing contract:
1° of the other dwellings of which it is, by inheritance, condominium, nu-propriétaire or usufruitier;
2° of another dwelling that is considered to be for sale on that date on the real estate market and that is actually sold on or before December 31 of the year following that of the conclusion of the loan contract;
3° because the taxpayer does not personally occupy the dwelling:
(a) for professional or social reasons;
(b) due to legal or contractual breaches that make it impossible for the taxpayer to occupy the dwelling on that date;
(c) due to the status of construction or renovation work that does not allow the taxpayer to effectively occupy the dwelling on the same date.
The tax reduction can no longer be granted:
1° from the year following that of the conclusion of the borrowing contract, when on December 31, this year the other dwelling referred to in the preceding paragraph, 2°, is not actually sold;
2° from the second year following that of the conclusion of the borrowing contract, when on December 31, this year, the taxpayer does not personally occupy the dwelling for which the loan was made, unless it does not deal with it for professional or social reasons.
Where, pursuant to the preceding paragraph, 2°, the tax reduction could not be granted for one or more taxable periods and the taxpayer personally occupies the dwelling for which the loan was made on December 31 of the taxable period during which the impediments referred to in paragraph 2, 3°, b and c disappear, the tax reduction may again be granted from that taxable period.
§ 2. The borrowings referred to in Article 145³⁷§ 1^er, are specifically contracted to acquire or retain a dwelling when they are entered into for:
1° buying a real estate;
2° the construction of a real estate;
3° the total or partial renovation of a real estate;
4° the payment of inheritance rights or donation rights relating to the dwelling referred to in Article 145³⁷§ 1^er, excluding late payment interest due in the event of late payment.
Renovation referred to in paragraph 1^er, 3°, the related benefits are those referred to in section XXXI of Table A of the Schedule to Royal Decree No. 20 of 20 July 1970 setting the value added tax rates and determining the distribution of goods and services according to these rates.
§ 3. The King shall determine the terms and conditions for the application of the reduction referred to in Article 145³⁷".
Art. 46. In heading II, chapter III, section I^re, sub-section IIoctodecies, of the same Code, inserted by section 43, it is inserted an article 145³⁹, as follows:
"Art. 145³⁹. Within the limits and conditions set out in section 145⁴⁰, a tax reduction is granted that is calculated on expenses that have actually been made during the tax period:
1° as a contribution of a supplementary insurance against old age and premature death that the taxpayer has paid permanently in a Member State of the European Economic Area to form an annuity or capital in the event of life or in the event of death in the performance of a life insurance contract that it has entered into individually when that capital is used for the reconstruction or guarantee of a loan that has been contracted specifically to acquire or retain a member's property
2° as a depreciation or re-enactment of a mortgage contracted specifically to construct, acquire or transform a dwelling located in a Member State of the European Economic Area that is at the time of payment the taxpayer's own home.
The tax reduction is calculated at the rate of 30 p.c.".
Art. 47. In heading II, chapter III, section I^re, sub-section IIoctodecies, of the same Code, inserted by section 43, it is inserted an article 145⁴⁰, as follows:
"Art. 145⁴⁰. § 1^er. Contributions under section 145³⁹Paragraph 1^er, 1°, are taken into consideration for tax reduction provided:
1° that the life insurance contract is signed:
(a) by the taxpayer who, in addition, has ascertained exclusively on his head;
(b) before age 65; contracts that are extended beyond the original term, rein force, processed or increased, while the insured has reached the age of 65 are not considered to be subscribed before that age;
(c) for a minimum period of 10 years when providing life benefits;
2° that the benefits of the contract are stipulated:
(a) in the event of life, for the benefit of the taxpayer from the age of 65;
(b) in the event of death:
- in addition to the insured capital that is used for the reconstruction or guarantee of the loan, for the benefit of the persons who, following the death of the insured, acquire the full property or usufruct of that property;
- up to the insured capital that is not used for the replenishment or guarantee of the loan, for the benefit of the spouse or parents to the second degree of the taxpayer;
3° that these contributions may not be considered, in whole or in part, for the purposes of articles 52, 7° bis, or 145³⁷.
§ 2. Amounts for amortization or replenishment of a mortgage under section 145³⁹Paragraph 1^er, 2°, are considered for tax reduction provided:
1° that the loan is contracted for a minimum period of 10 years from an establishment with its seat in the European Economic Area;
2° that these amounts cannot be considered for the application of Article 145³⁷.
Payments referred to in section 145³⁹Paragraph 1^er, 2°, are taken into consideration for the granting of the discount only to the extent that they relate to the first tranche of 50,000 euros of the initial amount of borrowings contracted for this dwelling.
For borrowings that were contracted before 1^er January 2001, the first tranche referred to in the previous paragraph was 2,000 000 BEF. This amount is indexed in accordance with section 178, as applicable for the taxation year related to the tax period during which the loan was contracted and then converted to euros.
§ 3. Contributions and amounts referred to in section 145³⁹Paragraph 1^erlimited where applicable in accordance with paragraphs 1^er and 2, are taken into consideration for tax reduction as these expenditures do not exceed the positive difference between:
- on the one hand, 15 p.c. of the first tranche of 1,250 euros of the total of professional income, excluding income taxed in accordance with section 171, and 6 p.c. of the surplus, with a maximum of 1,500 euros;
- and on the other hand, the amount for which a reduction was granted under section 145³⁷without taking into account any majorations referred to in § 2, paragraphs 2 and 3, of the aforementioned article.
§ 4. Contributions and premiums paid under life insurance contracts entered into before 1^er January 2009 and which are used for the re-establishment or guarantee of a loan entered into for the acquisition or retention of a property and which do not meet the beneficiary clause referred to in § 1^erParagraph 1^er, 2°, still take into consideration for tax reduction provided that these contracts meet the terms of the beneficiary clause as it existed in section 145⁴ before it was amended by section 173 of the Act of 27 December 2005 on various provisions and section 114 of the Act of 22 December 2008 on various provisions I.
§ 5. The King determines the terms and conditions for applying the tax reduction.".
Art. 48. In heading II, chapter III, section I^re, sub-section IIoctodecies, of the same Code, inserted by section 43, it is inserted an article 145⁴¹, as follows:
"Art. 145⁴¹. This section is applicable to expenditures under section 145³⁹ where these expenses relate to:
1° of borrowings contracted to build, acquire or transform the clean dwelling, which are entered into before 1^er January 1993;
2° of life insurance contracts that are used exclusively for the reconstruction or guarantee of a mortgage loan referred to in 1°.
In these cases:
1° in respect of borrowings contracted until December 31, 1988, amounts allocated to amortization or replenishment of a mortgage are not considered for the tax reduction referred to in section 145³⁹ only under the conditions referred to in Article 516, § 1^er, 1° ;
2° the amounts allocated to the amortization or replenishment of a mortgage are, by derogation from section 145⁴⁰§ 2, paragraph 2, taken into consideration for tax reduction within the limits referred to in Article 516, § 1^er, and § 2, paragraph 2, as it existed before being repealed by section 99 of the Act of 8 May 2014;
3° the tax reduction is calculated by derogation from section 145³⁹paragraph 2, at the rate determined in accordance with section 145³⁷§ 3 for:
- individual life insurance premiums referred to in section 145³⁹Paragraph 1^er, 1°, which is used exclusively for the reconstruction or guarantee of a mortgage under section 145³⁹Paragraph 1^er2°, to the extent that they relate to the first instalment of loans determined in accordance with Article 516, § 3, as it existed before being repealed by Article 99 of the Law of 8 May 2014;
- amounts allocated to amortization or replenishment of mortgages referred to in section 145³⁹Paragraph 1^erTwo.
When the application of sections 86, paragraph 1^er, 87 and 88, accordingly, in respect of a contract entered into before 1^er January 1989 on behalf of one of the spouses only the contributions and amounts referred to in section 145³⁹Paragraph 1^er, do not permit a reduction or reduction in the head of that specified spouse within the limits set out in section 145⁴⁰§ 3, the difference may give rise without splitting the contract, to a further reduction in favour of the other spouse, within the same limits. ".
Art. 49. In heading II, chapter III, section I^re, sub-section IIoctodecies, of the same Code, inserted by section 43, it is inserted an article 145⁴² , as follows:
"Art. 145⁴². This section is applicable to expenditures under section 145³⁹ where these expenses relate to:
1° of contracted mortgages:
(a) from 1^er January 1993 and before 1^er January 2005 to build, acquire or transform a dwelling located in the European Economic Area that is the sole property of the taxpayer at the time of the borrowing;
(b) from 1^er January 2005 to build, acquire or transform a dwelling in the European Economic Area that is the sole property of the taxpayer at the time of the conclusion of the loan, while for the same dwelling, there is another loan that comes into account for the deduction of interest in mortgages or for savings housing;
2° of life insurance contracts that are used exclusively for the reconstruction or guarantee of a mortgage loan referred to in 1°.
In these cases:
1° the amounts allocated to the amortization or replenishment of a mortgage under section 145³⁹Paragraph 1^er, 2°, are by derogation from Article 145⁴⁰, § 2, paragraph 2, taken into consideration for the tax reduction insofar as they relate to the first tranche of 50,000 euros, 52,500 euros, 55,000 euros, 60,000 euros and 65,000 euros of the initial amount of borrowings for the single dwelling, as the taxpayer does not have a dependent child or has one, two, three or more of three to 1^er January of the year following that of the conclusion of the loan contract;
2° the reduction is calculated by derogation from Article 145³⁹paragraph 2, at the rate determined in accordance with section 145³⁷§ 3 for:
- individual life insurance contributions referred to in Article 145³⁹Paragraph 1^er, 1°, which is used exclusively for the reconstruction or guarantee of a mortgage under section 145³⁹Paragraph 1^er2°, to the extent that they relate to the first tranche of loans determined in accordance with 1°;
- amounts allocated to amortization or replenishment of mortgages referred to in section 145³⁹Paragraph 1^erTwo.
For borrowings that were contracted before 1^er January 2001, the first tranche referred to in paragraph 2, 1°, was 2,000 000 BEF, 2,100,000 BEF, 2,200,000 BEF, 2,400,000 BEF and 2,600,000 BEF respectively. These amounts are indexed in accordance with section 178, as applicable for the taxation year related to the tax period during which the borrowing was contracted and then converted to euros.
For the purposes of paragraph 1^er, 1°, b, we must hear by:
1° deduction of interest in mortgages: the benefit referred to in section 104, 9°, as it existed before being amended by the Program Act of 27 December 2004 and remained applicable on the basis of section 526, and section 145⁴⁵;
2° Leasing Savings: the major reduction referred to in sections 145¹⁷ to 145²⁰as they existed before being repealed by section 400 of the Program Law of 27 December 2004 and remained applicable on the basis of section 526, section 145⁴¹, alienated 2, 3°, or paragraph 2.".
Art. 50. In heading II, chapter III, section I^re, sub-section IIoctodecies, of the same Code, inserted by section 43, it is inserted an article 145⁴³ , as follows:
"Art. 145⁴³. A tax reduction is granted for:
1° interest in debts contracted before 1^er January 2015 specifically for the purpose of acquiring or retaining the dwelling that, at the time that these interests are paid, is the taxpayer's own dwelling whose income is included in its taxable real property income before the application of section 12, excluding interest that enters into an account for the tax reduction referred to in section 145³⁷;
2° the royalties and the value of the charges associated with the acquisition of a right of emphytéosis, of land or of similar real property rights, other than the rights of use referred to in Article 10, § 2, on the dwelling referred to in 1° .
Interests and royalties referred to in paragraph 1^er enter into an account for the tax reduction as long as they do not exceed the net income of the taxpayer's real property.
The amount of interest and royalties determined in accordance with paragraph 2 is reduced:
1° of the amounts of such interest and royalties in proportion to the net income of immovable property located abroad that is exempted under international double taxation conventions in respect of the total net income of real property;
2° of half of the amount of the said interest and royalties in proportion to the net income of the real estate if abroad not covered by 1° with respect to the total net income of the real property.
The tax reduction is calculated at the rate determined in accordance with section 145³⁷§ 3, on the amount of interest and royalties that may be considered in accordance with the preceding paragraphs.
When a common taxation is established:
- interest and royalties referred to in paragraph 1^er and the net income of the two spouses ' real property is added;
- the amount on which the tax reduction is calculated shall be apportioned proportionally to the income taxed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130. ".
Art. 51. In heading II, chapter III, section I^re, sub-section IIoctodecies, of the same Code, inserted by section 43, it is inserted an article 145⁴⁴, as follows:
"Art. 145⁴⁴. § 1^er. This section is applicable where borrowings specifically contracted for the purpose of acquiring or retaining the home itself have been concluded:
(a) before 1^er January 2005;
(b) from 1^er January 2005, while for the same dwelling, there is another borrowing referred to in (a) that comes into account for the deduction of interest referred to in section 14 or for the purposes of this section;
§ 2. In the cases referred to in paragraph 1^era tax reduction is granted for the following expenses and expenses that have been paid or incurred during the tax period:
- interest in borrowing referred to in paragraph 1^er;
- the royalties and the value of the associated charges relating to the acquisition of a right of emphyteosis, land or similar real property rights, other than the rights of use referred to in Article 10, § 2, on the property for which interest referred to in the first dash was paid.
Interests and royalties come into account for tax reduction when the dwelling for which they have been paid or supported is at that time the taxpayer's own dwelling whose income is included in the taxpayer's taxable real estate income, before the application of section 12.
Interests and royalties, however, come into account for tax reduction only to the extent that:
1° they are not considered for the tax reduction referred to in section 145^43;
2° they do not exceed the income of the clean dwelling determined in accordance with Articles 7, § 1^er, 1°, a, first shot, 8 to 11, 13, 15 and 518.
The tax reduction is 12.5 p.c. of interest and royalties considered.
When a common taxation is established, the tax reduction is calculated for both spouses together. The tax reduction calculated shall be apportioned proportionally to the income taxed in accordance with section 130 of each spouse in all incomes of the two spouses taxed in accordance with section 130. ".
Art. 52. In heading II, chapter III, section I^re, sub-section IIoctodecies, of the same Code, inserted by section 43, it is inserted an article 145⁴⁵, as follows:
"Art. 145⁴⁵. § 1^er. This Article shall apply where:
1° of the mortgages contracted to acquire or retain the dwelling that is the taxpayer's single dwelling on December 31 of the taxable period were concluded:
(a) from 1^er May 1986 and before 1^er January 2005;
(b) from 1^er January 2005 whereas for the same home, there is another mortgage that comes into account for the deduction of mortgage interest or for housing savings;
2° the dwelling for which mortgages have been contracted is the taxpayer's own home at the time the interest is paid.
For the purposes of paragraph 1^er, 1°, b, we must hear by:
1° deduction of interest in mortgage loans: the benefit referred to in section 104, 9°, as it existed before being amended by the Program Act of 27 December 2004 and remained applicable on the basis of section 526, and this section;
2° Leasing Savings: the major reduction referred to in sections 145¹⁷ to 145²⁰as they existed before being repealed by section 400 of the Program Law of 27 December 2004 and remained applicable on the basis of section 526, section 145⁴¹, paragraph 2, 3, and article 145⁴²Paragraph 2.
§ 2. For the mortgage interest referred to in paragraph 1^er who were paid at the time the housing for which they were entered is the taxpayer's own home, a tax reduction is granted under the following conditions:
1° the mortgage has been contracted for a minimum period of 10 years;
2° the mortgage is for a dwelling located in the European Economic Area that is the only home in property on December 31 of the taxable period and is contracted by the taxpayer for either:
(a) the construction of this dwelling;
(b) the acquisition in the new state of that dwelling; this condition is met when the seller has sold the dwelling to the taxpayer with the application of the value added tax;
(c) the total or partial renovation of the dwelling, provided that the property is occupied:
- for at least 20 years at the conclusion of the loan contract for mortgages contracted before 1^er November 1995;
- for at least 15 years at the conclusion of the loan contract for mortgages contracted from 1^er November 1995;
3° with respect to the total or partial renovation of the dwelling:
(a) the total cost of the work, including the value added tax, must reach at least 19,800 euros, on the understanding that when the portion of the loan calculated in accordance with § 3, paragraph 2, exceeds the total cost of the work, that portion shall be taken into account only in the amount of that cost;
(b) benefits relating to this work, the nature of which is determined by the King, are provided and charged to the taxpayer.
§ 3. The interest referred to in paragraph 2 shall be taken into account for tax reduction only to the extent that such interest, together with the other interest and royalties referred to in section 145⁴³Paragraph 1^erexceed the net income of the taxpayer's real property, plus the taxable income of the specific dwelling in accordance with sections 7 to 11, 13, 15 and 518. When a common taxation is established, the interest and royalties referred to in section 145⁴³Paragraph 1^er, and the income of real property of both spouses is taken overall.
In addition, the interest, limited in accordance with the preceding paragraph, shall not enter into an account for the tax reduction only to the extent that it relates to the first tranche of 50,000 euros, 52,500 euros, 55,000 euros, 60,000 euros or 65,000 euros of the initial amount of the loans when it comes to the construction or acquisition in the new state of a dwelling or the first tranche of 25,000 euros^er January of the year following that of the conclusion of the loan contract.
§ 4. The benefit is granted for a maximum of twelve successive taxable periods during which the income of the dwelling for which the borrowings were made is included among the income of the real property determined in accordance with sections 7 to 11, 13 and 15.
For each of the first five taxable periods the tax reduction is calculated at the rates determined in accordance with section 145³⁷§ 3, out of 80 p.c. of the amount of interest determined in accordance with paragraph 3, and for each of the following seven taxable periods, respectively, of 70, 60, 50, 40, 30, 20 and 10 p.c. of those interest.
§ 5. Where a common taxation is established the amount on which the tax reduction is calculated, is apportioned proportionally according to the income tax imposed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130.
§ 6. For borrowings that were contracted before 1^er January 2001:
1° the total cost of the work, value added tax included, cited in § 2, paragraph 1^er, 3°, a, is 800,000 BEF;
2° the first slices referred to in § 3, paragraph 3, rise respectively to 2,000,000 BEF, 2.100.000 BEF, 2.200.000 BEF, 2.400.000 BEF in 2.600.000 BEF, 1.000.000 BEF, 1.050.000 BEF, 1.100.000 BEF, 1.200.000 BEF and 1.300.000 BEF.
The amounts referred to in the preceding paragraph are indexed in accordance with section 178, as applicable for the taxation year related to the tax period during which the loan was contracted and then converted to euros.".
Art. 53. In heading II, chapter III, section I^re, sub-section IIoctodecies, of the same Code, inserted by section 43, it is inserted an article 145⁴⁶, as follows:
"Art. 145⁴⁶. § 1^er. When the taxpayer:
- concluded between 1^er January 2005 and December 31, 2013, a mortgage loan to acquire or maintain a home, while for the same home, there was another loan that entered into an online account for housing savings or for the deduction of interest in mortgage loans under section 526, § 2, as it existed before being amended by section 101 of the Act of 8 May 2014 and
- referred to in its statement relating to the tax period in which a loan was made from 1^er January 2005, whether it opts for this loan or for the insurance contract that is used exclusively for its replenishment or guarantee, for the application of the single housing deduction referred to in section 104, 9°, as it existed before being repealed by section 20 of the Act of 8 May 2014,
Articles 145⁴³, 145⁴⁴ and 145⁴⁵ no longer applies to borrowing interests that have been entered into by December 31, 2013 to acquire or retain the same dwelling and expenses referred to in section 145³⁹ any borrowings made no later than December 31, 2013 for the same dwelling and insurance contracts that are used for the replenishment or guarantee of these borrowings are no longer considered for the tax reduction under this section.
§ 2. When from 1^er January 2014, the taxpayer:
- concludes a mortgage to acquire or retain a dwelling referred to in section 145³⁸§ 1^erParagraph 1^er, 1°, while for the same dwelling, there is another loan that comes into account for the application of Articles 145⁴¹§ 1^er, paragraph 2, 3°, 145⁴²§ 1^er, paragraph 2, 2°, or 145⁴⁵ or for the reduction for housing savings or the reduction for interest in mortgages under section 526, and
- requests the application of the tax reduction referred to in section 145³⁷ for borrowing from 1^er January 2014 or for the life insurance contract that is used exclusively for the replenishment or guarantee of that borrowing, in its declaration concerning the taxable period during which the borrowing was made or in respect of the taxable period during which the dwelling becomes the taxpayer's own dwelling, in case the taxpayer is a taxable period subsequent to the taxable period during which the borrowing was made,
Articles 145⁴³,145⁴⁴ and 145⁴⁵ no longer applies to interest in borrowings that have been entered into prior to the acquisition or retention of the same dwelling and expenses referred to in section 145³⁹ relating to borrowings previously entered into for the same dwelling and insurance contracts that are used for the replenishment or guarantee of these borrowings, no longer come into account for tax reductions referred to in this section.
§ 3. The choices referred to in the preceding paragraphs are final, irrevocable and bind the taxpayer.
When a common taxation is established, both taxpayers must make the same choice. ".
Art. 54. In heading II, chapter III, section I^re, from the same Code, it is inserted a sub-section IInovodecies, entitled "Sub-section IInovodecies - Tax reduction for roof insulation expenses".
Art. 55. In heading II, chapter III, section I^re, sub-section IInovodecies, of the same Code, inserted by section 54, it is inserted an article 145⁴⁷, as follows:
"Art. 145⁴⁷. A tax reduction is granted for expenses actually paid during the taxable period for the insulation of the roof of a dwelling of which the taxpayer is the owner, owner, emphytéote, superficiaire, usufruitier or tenant.
The tax reduction is not applicable to expenses that:
(a) are considered as actual professional costs;
(b) give the investment deduction referred to in section 69;
(c) consider the application of Articles 145²⁵, 145³⁰, 145³¹ or 145^36;
(d) work carried out at a home whose first occupation precedes less than five years the beginning of the work.
The tax reduction is equal to 30 p.c. of actual paid expenditures referred to in paragraph 1^er.
The total amount of the tax reduction may not exceed by taxable period 2,000 euros per dwelling.
Where a common taxation is established, the tax reduction shall be apportioned proportionally to the income tax imposed in accordance with section 130 of each spouse in all incomes of the two spouses imposed in accordance with section 130.
The King sets out the conditions to which work on the expenses referred to in paragraph 1 must be met.^er".
Art. 56. In the opening sentence of Article 147 of the same Code, replaced by the Act of 10 August 2001 and amended by the Acts of 23 December 2005, 17 May 2007, 27 March 2009, 22 December 2009 and 17 June 2013, the words "determined in accordance with Articles 130 to 145" are inserted between the words "tax" and the word "afférent".
Art. 57. In section 152bis of the same Code, inserted by the law of June 8, 2008, the words "or paragraph 2" are inserted between the words "paragraph 1^er, 1° or 2°, "and the words "and the amount mentioned".
Art. 58. In section 153 of the same Code, the words "determined in accordance with sections 130 to 145" are inserted between the words "the quotity of tax" and the words "that is related".
Art. 59. Section 154bis, paragraph 6, of the same Code, inserted by the Act of 3 July 2005 and amended by the Act of 27 December 2006, is replaced by the following:
"However, the tax reduction may not exceed the tax State relating to the net amount of remuneration referred to in section 30, 1°, imposed in accordance with section 130, other than the compensation obtained in total or partial compensation of a temporary loss of remuneration. ".
Art. 60. In the opening sentence of article 156, paragraph 1^er, of the same Code, as amended by the Royal Decree of 20 December 1996, the words "calculated in accordance with sections 130 to 145, 146 to 154, 169 and 170," are inserted between the words "tax" and the words "that correspond".
Art. 61. Section 156bis of the same Code, inserted by the Act of 8 June 2008 and amended by the Acts of 27 March 2009 and 28 December 2011, is repealed.
Art. 62. In section 157, paragraph 1^er, of the same Code, amended by the Royal Decree of 20 December 1996 and the Act of 24 December 2002, the word "tax" is replaced by the words "total tax".
Art. 63. In section 158 of the same Code, as amended by the Act of 20 December 1995, the Royal Decree of 20 December 1996 and the Acts of 24 December 2002 and 22 December 2009, the words "the related tax" are replaced by the words "the total tax thereto" and the word "immobilier," is repealed.
Art. 64. In section 165 of the same Code, the words "tax is 106 p.c. of tax due to the state" are replaced by the words "total tax is increased to 106 p.c."
Art. 65. Section 166 of the same Code, as amended by the Royal Decree of 20 December 1996 and the Act of 24 December 2002, is replaced by the following:
Art. 166. For the purposes of this subsection, the profits, profits and remuneration referred to in Article 30, 2 and 3° shall not include:
1° compensation obtained in total or partial compensation of profits, remuneration or profits;
2° income taxed in accordance with section 171. ".
Art. 66. Article 169, § 1^erParagraph 1^erthe same Code, as amended by the Acts of 28 July 1992, 28 December 1992, 17 May 2000, 24 December 2002 and 27 December 2004, is replaced by the following:
§ 1^er. The capitals mentioned below shall, for the determination of the taxable base, be limited to the life annuity that would result from the conversion of these capitals and redemption values according to coefficients, determined by the King by deliberate order in the Council of Ministers, which may not exceed 5 p.c.:
1° of capital allowances that are indemnity in the total or partial repair of a permanent loss of professional income;
2° of the liquidated capital upon the normal expiration of the contract or the death of the insured and the liquidated redemption values over one of the five years preceding the normal expiration of the contract, provided that it is capital and redemption values allocated as a result of:
(a) supplementary pensions pursuant to article 52bis of Royal Decree No. 72 of 10 November 1967 concerning the retirement and survival pension of self-employed persons, as it was in force before being replaced by section 70 of the Program Law of 24 December 2002, or supplementary pensions referred to in Part II, Chapter I^erSection 4 of the Programme Law of 24 December 2002;
(b) individual life insurance contracts, other than individual continuations of a pension undertaking referred to in article 34, § 1, 2°, paragraph 1^er, c, and that savings insurance contracts referred to in section 145¹⁶, 3°, and this up to the amount used to replenish or guarantee a mortgage loan. ".
Art. 67. In section 171 of the same Code, last amended by the Program Act of 26 December 2013, the following amendments are made:
1° the opening sentence is replaced by the following:
"By derogation from sections 130 to 145 and 146 to 156, may be taxed separately, unless the tax so calculated, plus the tax State relating to other incomes, is greater than the tax calculated in accordance with the above-mentioned articles and relating to the revenues referred to in 17, § 1^er, 1° to 3° and 90, 6° and 9°, and to surplus-values on taxable movable securities and securities on the basis of section 90, 1°, plus of the tax State relating to all other taxable incomes:";
2° in 2°, d, the words "seen to articles 104, 9°, and 145¹, 2°, "are replaced by the words "constituted by contributions referred to in Article 34, § 1^er, 2°, paragraph 1^er, d, and e,"
3° in 5°, the introductory sentence is supplemented by the words "that is determined on the basis of the tax due under sections 130 to 145 and 146 to 154, reduced by the tax reductions referred to in sections 145¹ to 145¹⁶, 145²⁴, 145²⁸, 145³² to 145³⁵ and 154 bis
4° in 6°, the introductory sentence is supplemented by the words "that is determined on the basis of the tax due under sections 130 to 145 and 146 to 154, reduced by the tax reductions referred to in sections 145¹ to 145¹⁶, 145²⁴, 145²⁸, 145³² to 145³⁵ and 154bis."
Art. 68. In section 172, paragraph 1^er, of the same Code, as amended by the Act of 28 December 1992, the words "sections 104 to 116." are replaced by the words "sections 104 to 106. ".
Art. 69. In section 175 of the same Code, as amended by the Act of 20 December 1995, the following amendments are made:
1° the opening sentence is replaced by the following:
"On total tax, increased to 106 p.c., plus increases referred to in sections 145⁷§ 2, and 145³²§2, and reduced;
2° in the 1°, the words "federal or regional" are inserted after the words "tax credit".
Art. 70. In Title II, Chapter III, of the same Code, a section V, entitled "Section V - Imputation of tax reductions and tax reductions".
Art. 71. In title II, chapter III, section V, of the same Code, inserted by section 70, an article 178/1 is inserted, as follows:
"Art. 178/1. § 1^er. Tax reductions referred to in sections 145¹ to 145¹⁶, 145²⁴, 145²⁸, 145³² to 145³⁵ and 154bis, are charged on the reduced State tax relating to income tax that is taxed in accordance with section 130 and on income tax referred to in sections 17, § 1^er, 1° to 3°, and 90, 6° and 9°, and to surplus-values on taxable movable values and securities on the basis of Article 90, 1°, when imposed in accordance with Article 130.
Tax reductions referred to in paragraph 1^er, which may not be charged on the tax referred to therein, shall be charged on the tax of the regional natural persons relating to the income tax imposed in accordance with section 130.
§ 2. Tax reductions and tax reductions are charged on the tax for each income category, prorated by the tax for each of these categories.
Tax reductions are charged in the following order:
1° in the first place, tax reductions that cannot be converted to a tax credit or give rise to a subsequent taxation shall be charged in the order in which they are incorporated in this Code;
2° then, tax reductions that cannot be converted to a tax credit, but which may result in subsequent taxation are charged in the order in which they are incorporated in this Code;
Finally, tax reductions that can be converted to a tax credit are charged. ".
Sub-section 4. - Entry into force
Art. 72. This section is applicable from the 2015 taxation year, with the exception:
1° of Article 8, 1° and 2°, which is applicable to taxable periods beginning on 1^er January 2014 or later;
2° of section 67, 3°, which is applicable where the last year in which a taxpayer had a normal business activity, is related to the 2015 taxation year or to a subsequent taxation year.
Sections 23 and 57 shall have effect with respect to contracts referred to in Articles 145³⁷ and 539 of the Income Tax Code 1992, concluded no later than 31 December 2014.
Where income under section 171, 5 and 6 of the Income Tax Code 1992 is paid or awarded in 2014 or 2015, regional tax reductions are also taken into account to determine the average rate to which these revenues are taxed.
Section 2. - Amendments to non-resident tax provisions
Art. 73. Section 235bis of the same Code, inserted by the Act of 6 July 1994, is repealed.
Art. 74. In section 242 of the Code, as amended by the Acts of 28 July 1992, 14 April 2011 and 13 December 2012, the following amendments are made:
1° § 1^erParagraph 2, is repealed;
2° in paragraph 2, the words "articles 104 to 116" are replaced by the words "articles 104 to 106" and the words "and within the limits" are repealed.
Art. 75. In section 243 of the same Code, last amended by the Act of 13 December 2012, the following amendments are made:
1° Paragraph 3 is replaced by the following:
"Articles 126 to 129, 145¹, 1°, 2° and 5°, 145² to 145⁴, 145⁶with respect to the application of section 145¹, 2°, 145⁸ to 145¹⁶, 145²⁴, 145²⁸, 145³²154bis, 157 to 169, and 171 to 178/1 are also applicable, provided that:
1° with respect to individual life insurances that are used for the reconstruction or guarantee of a mortgage, section 145¹, 2°, is applicable only when the mortgage has been contracted for:
- a residence located in Belgium;
- a residence located in another Member State of the European Economic Area which is the taxpayer's own home on December 31 of the year of the conclusion of the loan contract;
2° for the purposes of section 178/1, tax reductions are charged on the tax calculated in accordance with sections 130, 146 to 154 and 169;
3° for the application of articles 145³², § 2, 157, 158, 165 and 175, the tax calculated in accordance with sections 130, 145 shall be understood by total tax.¹, 1°, 2° and 5°, 145² to 145⁴, 145⁶, 145⁸ to 145¹⁶, 145²⁴, 145²⁸, 145³²§ 1^er, 154bis, 169, and 171 to 178/1. ";
2° Paragraph 4 is repealed.
Art. 76. In title V, chapter IV, of the same Code, an article 243/1 is inserted, as follows:
"Art. 243/1. Where the taxpayer has obtained or collected taxable business income in Belgium that amounts to at least 75 per cent of the total of his or her professional income earned or collected during the taxable period of Belgian and foreign sources, sections 86 to 89 are, by derogation from section 243, applicable and the tax is calculated in accordance with sections 130 to 145¹⁶, 145²⁴, 145²⁸, 145³² to 145³⁵, 146 to 154bis, 157 to 169, and 171 to 178/1, on the understanding that:
1° the total revenues of Belgian and foreign sources are taken into account for the purposes of articles 86 to 89 and 146 to 154;
2° Articles 145¹, 2°, with respect to individual life insurances that are used for the reconstruction or guarantee of a mortgage, and 145¹, 3°, only applicable when the mortgage is contracted for:
- a residence located in Belgium;
- a residence located in another Member State of the European Economic Area which is the taxpayer's own home on December 31 of the year of the conclusion of the contract;
3° for the purposes of section 178/1, tax reductions are charged on the tax calculated in accordance with sections 130 to 145, 146 to 154 and 169;
4° for the application of articles 145⁷§ 2, 145³², § 2, 157, 158, 165 and 175, the tax calculated in accordance with sections 130 to 14 shall be heard by total tax.⁵⁶, 145⁷§ 1^er, 145⁸ to 145¹⁶, 145²⁴, 145²⁸, 145³²§ 1^er, 145³³ to 145³⁵, 154bis, 169 and 171 to 178/1.
Art. 77. Section 244 of the Code, replaced by the Act of 30 January 1996 and amended by the Acts of 25 April 2007, 22 December 2008 and 13 December 2012, is replaced by the following:
"Art. 244. Where the taxpayer is a resident of another Member State of the European Economic Area and has obtained or collected taxable professional income in Belgium that amounts to at least 75 per cent of the total of his or her professional income earned or collected during the taxable period of Belgian and foreign sources, the tax is, by derogation from sections 243 and 243/1, calculated according to the rules set out in Part II, Chapter III and taking into account sections 129 to 89 and
1° the total revenues from Belgian and foreign sources come into account for the application of articles 86 to 89, and 146 to 154;
2° Articles 145¹, 2°, and 145³⁹Paragraph 1^er, 1°, with respect to individual life insurance premiums that are used for the reconstruction or guarantee of a mortgage, and sections 145¹, 3°, and 145³⁹Paragraph 1^er, 2°, are applicable only when the mortgage has been contracted for:
- a residence located in Belgium;
- a residence is located in another Member State of the European Economic Area which is the taxpayer's own home on December 31 of the year of the conclusion of the loan contract.".
Art. 78. In article 244bis, paragraph 1^er, of the same Code, inserted by the law of 28 December 1992 and amended by the law of 6 July 1994, by the royal decrees of 20 July 2000 and 13 July 2001 and by the law of 10 August 2001, the words "articles 243 and 244" are replaced by the words "articles 243 to 244".
Art. 79. Article 245, paragraph 1^erthe same Code, as amended by the Act of 24 December 2002, is replaced by the following:
"The tax established in accordance with sections 243 to 244 is increased by six additional cents for the benefit of the State, which are calculated:
1° with respect to the tax established under sections 243 and 243/1: on the tax determined:
- prior to the application of the increases provided for in articles 145⁷§ 2, 145³²§ 2 and 157 to 168;
- before charging the tax credits referred to in sections 134, § 3, and 145²⁴§ 1^er, paragraph 5, of the bonus referred to in sections 175 to 177, the advance payments referred to in sections 157 to 168 and 175 to 177, the lump-sum foreign tax quotity, movable and professional prepayments and tax credits referred to in sections 289bis, 289ter and 289ter/1;
- before applying the increments referred to in section 444;
2° in respect of the tax established in accordance with section 244: in accordance with the terms and conditions set out in section 466. ".
Art. 80. Sections 73 to 79 are applicable from the 2015 taxation year.
Derogation from paragraph 1^er, sections 76 and 77 apply, with respect to the application of the professional pre-payment, to the occupational income and annuities that are paid or attributed from the first day of the month following the expiration of a period of ten days beginning on the day following the publication of this Act to the Belgian Monitor.
Section 3. - Amendments to the provisions common to the four taxes
Art. 81. In title VI, chapter II, the title of section IVbis is replaced by the following:
"Section IVbis - Tax Credits."
Art. 82. In title VI, chapter II, the title of section V is replaced by the following:
"Section V. - Limits of imputation of the movable pre-payment, the flat-rate foreign tax quotity and tax credits".
Art. 83. Article 289bis, § 1^er, of the same Code, replaced by the Act of 4 May 1999 and amended by the Royal Decree of 13 July 2001 and by the Act of 17 June 2013, the following amendments are made:
1° in paragraph 1^erthe opening sentence is replaced by the following:
§ 1. To the inhabitants of the Kingdom who produced or collected profits or profits referred to in Article 23, § 1^er, 1° and 2° and non-residents referred to in Article 227, 1°, which produced or collected profits or profits referred to in Article 228, § 2, 3° and 4°, it is granted a tax credit of 10 p.c., with a maximum of EUR 3,750, of the surplus represented by: "
2° paragraph 5, first dash, is replaced by the following:
"- the tax credit is granted only when the tax is calculated in accordance with section 243/1 or 244;".
Art. 84. In Article 289ter, § 2/1, inserted by the law of 17 June 2013, the words "in Article 244" are replaced by the words "in Article 243/1 or 244".
Art. 85. Section 290 of the same Code, replaced by the Act of 10 August 2001 and amended by the Acts of 27 December 2004 and 19 June 2011, is replaced by the following:
"Art. 290. For the inhabitants of the Kingdom:
1° the lump-sum foreign tax quotity in the case referred to in section 285 is payable on tax only to the extent that it does not exceed the quotity of the State tax that is related to professional income;
2° the tax credits referred to in sections 289bis, § 1^er, 289ter and 289ter/1 are charged in full on tax.
For the purposes of paragraph 1^er, the total tax must be heard by tax, plus the increases referred to in sections 145⁷§ 2, 145³²§ 2, 157."
Art. 86. Section 291 of the same Code, as amended by the Acts of 20 December 1995, 4 May 1999 and, with respect to the Dutch text, 10 August 2001, is repealed.
Art. 87. In section 294 of the same Code, as amended by the laws of 22 December 1998 and 13 December 2012, the following amendments are made:
1° paragraph 2 is replaced by the following:
"In the head of non-residents referred to in Article 232, who collect income other than income covered by the article or that income added to the income referred to in Article 232 in accordance with Article 248, §§ 2 and 3, no charge for pre-payments for such other income shall be effected on the tax calculated in accordance with Articles 243 to 245. In addition, the pre-payments for income to which Article 248 § 1^er, paragraph 2, applies, is also not charged to that tax."
2° it is inserted between paragraph 2 and paragraph 3, which becomes paragraph 4, a paragraph written as follows:
"In the head of non-residents referred to in Article 233, who collect income other than income covered by the article or that income that is added to the income referred to in Article 233 in accordance with Article 248, § 3, no charge for pre-payments for such other income shall be effected on the tax calculated in accordance with Article 246, paragraph 1^er1 and 2."
3° in paragraph 5, which became paragraph 6 after 2°, the words "or that revenues that are added to the revenues referred to in Article 234 in accordance with Article 248, § 3" are inserted between the words "seen to the article" and "no imputation" and the word "premise" is replaced by the word "premises".
Art. 88. In section 294 of the same Code, as amended by section 87, it is inserted between paragraph 1^er and paragraph 2, which becomes paragraph 3, a paragraph that reads as follows:
"However, for the purposes of sections 290 and 291 in the head of non-residents referred to in section 232:
1° where the tax is established in accordance with section 243 or 243/1, "state tax" means the tax calculated in accordance with sections 130 to 145, 146 to 154, 169 and 171 to 174;
2° you must hear by "tax" :
- where the tax is established in accordance with section 243: the total tax as defined in section 243, paragraph 3, 3°, plus the increases referred to in section 145³²§ 2, 157;
- where the tax is established in accordance with section 243/1: the total tax as defined in section 243/1, 4°, plus the increases referred to in section 145⁷§ 2, 145³²§ 2, 157;
- where the tax is established in accordance with section 244: the tax as defined in section 290, paragraph 2.".
Art. 89. In section 296, paragraph 1^er, of the same Code, as amended by the law of December 22, 1998, the words "of real estate pre-payment," are repealed and the words "of tax credit" are replaced by the words "tax credits".
Art. 90. Section 87 is applicable from the 2014 taxation year.
Sections 81 to 86, 88 and 89 are applicable from the 2015 taxation year.
Section 85 also applies to excess tax credits referred to in section 289bis, § 1^er, the Income Tax Code 1992 which was deferred to the 2015 taxation year under section 291, paragraphs 2 and 3, of the same Code as they existed before being repealed by section 86 of this Act.
Section 4. - Amendments to the provisions relating to the establishment and collection of taxes
Art. 91. Article 304, § 2, paragraph 1^erthe same Code, replaced by the Act of 22 December 2009 and amended by the Act of 19 June 2011, is replaced by the following:
"In the head of the inhabitants of the Kingdom, the possible excess of the tax credits referred to in sections 134, § 3, and 145²⁴§ 1^er, paragraph 5, advance payments referred to in sections 157 and 175, professional pre-payments referred to in sections 270 to 272, movable, real or fictitious pre-payments referred to in sections 279 and 284, tax credits referred to in sections 289bis, § 1, 289ter and 289ter/1 and regional tax credits, shall be charged, if any, on the additional taxes referred to in the tax
Art. 92. In Article 376, § 3, 2°, of the same Code, replaced by the Act of 15 March 1999 and amended by the Act of 21 December 2013, the words "of reductions resulting from the application of Articles 88, 131 to 135, 138, 139, 145¹ to 156 and 257" are replaced by the words "reductions resulting from the application of sections 88, 131 to 135, 138, 139, 145¹ to 156, 257, 526, § 1^er, and 539 and regional tax reductions and decreases".
Art. 93. Section 91 is applicable from the 2015 taxation year.
Section 92 is applicable to debits of office for the 2015 and subsequent taxation year.
Section 5. - Amendments to the provisions relating to powers to provinces, towns and municipalities.
Art. 94. Article 466, paragraph 1^erthe same Code, as amended by the Acts of 20 December 1995, 10 August 2001, 22 December 2009 and 14 April 2011, is replaced by the following:
"The additional municipal tax to the tax of natural persons and the additional agglomeration tax to the tax of natural persons is calculated on the total tax.".
Art. 95. In article 466bis of the same Code, inserted by the law of 13 December 2002 and amended by the law of 14 April 2011, the words "tax due to the State" are replaced by the words "total tax".
Art. 96. Sections 94 and 95 are applicable from the 2015 taxation year.
Section 6. - Changes to cadastral income provisions
Art. 97. In Article 494, § 6, of the same Code, inserted by the Act of 8 April 2003 and replaced by the Act of 28 December 2006, the following amendments are made:
1st paragraph 1^er, first dash, is supplemented by the words "as applicable to the 2014 taxation year";
2° paragraph 1^er, second dash, is supplemented by the words "as applicable to the 2014 taxation year";
Paragraph 2 is replaced by the following:
"Paragraph 1^er is applicable only when satisfied with the following conditions:
1° it is a reassessment referred to in § 1^er2° or 3°;
2° the event, the declaration of which is prescribed in section 473, occurred no later than 31 December 2013. ".
Art. 98. Section 97 is applicable from 1^er January 2014.
Section 7. - Amendments to transitional provisions
Art. 99. In section 516 of the same Code, replaced by the Act of 28 December 1992 and amended by the Acts of 6 July 1994 and 17 May 2000, by the Royal Decrees of 13 July 2001 and 11 December 2001 and by the Act of 27 December 2004, the following amendments are made:
Paragraphs 2 and 3 are repealed;
2° in paragraph 4, the words "at articles 145¹, 2° and 3°, and 145¹⁷, 1° and 2°, as they existed before being amended or repealed by sections 397 and 400 of the program law of 27 December 2004," are replaced by the words "in section 145¹2° and 3°, as it existed before being amended by section 397 of the Program Law of 27 December 2004, and the words "or a major reduction" are repealed;
3° in paragraph 5, the words "and in paragraph 3, paragraph 3," are repealed.
Art. 100. In section 518 of the same Code, as amended by the Royal Decrees of 20 July 2000 and 13 July 2001 and by the Acts of 10 August 2001, 27 December 2004 and 22 December 2008, the following amendments are made:
1° in paragraph 1^erthe words "16, as it existed before being repealed by section 389 of the Program Law of 27 December 2004," are repealed and the words "255, and 277, as it existed before being repealed by section 407 of the Program Law of 27 December 2004" are replaced by the words "and 255,";
2° Paragraph 3 is repealed.
Art. 101. In section 526 of the Code, replaced by the Act of 27 December 2005 and amended by the Acts of 25 April 2007, 22 December 2008 and 13 December 2012, the following amendments are made:
Paragraphs 1 to 3 are replaced by the following:
§ 1^er. This subsection is applicable where mortgages contracted to acquire or maintain a single home have been concluded:
(a) before 1^er January 2005;
(b) from 1^er January 2005 and no later than December 31, 2013, while for the same home, there is another mortgage loan referred to in (a) that comes into account for the deduction of mortgage interest or for housing savings;
In this case, the taxpayer may apply the application of sections 104, 115 and 116, as they existed before being amended or repealed by sections 394 and 395 of the Program Act of 27 December 2004, and section 242, § 2, as it existed before being amended by section 74 of the Act of 8 May 2014 for the interests of a mortgage loan referred to in paragraph 1^erHowever, on the understanding that:
1° the benefit is granted in the form of a tax reduction calculated on the amount that would be deductible from all net income in accordance with section 116 above;
2° the tax reduction is calculated at the highest tax rate applied to the taxpayer and referred to in section 130, with a minimum of 30 p.c. In the event that the expenditures to be considered for the reduction relate to more than one tax rate, the tax rate applicable to each part of these expenditures should be retained;
3° where a common taxation is established the amount on which the tax reduction is calculated shall be apportioned proportionally according to the income taxed in accordance with section 130 of each spouse in all incomes of the two spouses taxed in accordance with section 130;
4° the tax reduction is charged in accordance with section 178/1, after the tax reduction referred to in section 145¹, 1° ;
5° the tax reduction is considered to determine the average rates referred to in 171, 5° and 6°.
The interest referred to in section 104, 9°, referred to above, does not come into account for the tax reduction when the dwelling for which the loan was contracted, is the taxpayer's own home at the time of payment of the interest.
For the purposes of article 115 referred to above, the notion "in Belgium" is replaced by the notion "in a Member State of the European Economic Area".
§ 2. This paragraph shall apply:
1° where mortgages contracted to acquire or maintain a single dwelling have been concluded:
(a) before 1^er January 2005;
(b) from 1^er January 2005 and no later than December 31, 2013, while for the same home, there is another mortgage loan referred to in (a) that comes into account for the deduction of mortgage interest or for housing savings;
2° in the case of life insurance contracts that are used exclusively for the reconstruction or guarantee of a mortgage loan referred to in 1°;
In this case, the taxpayer may apply the application of sections 145¹⁷ to 145²⁰, as they existed before being repealed by section 400 of the Program Act of 27 December 2004, for amounts allocated to amortization or replenishment of a mortgage referred to in paragraph 1^er, 1° or for contributions paid pursuant to an insurance contract referred to in paragraph 1^erTwo.
§ 3. Expenses relating to borrowings and contracts referred to in the preceding paragraphs are not considered for the deduction referred to in section 14 or for tax reductions referred to in section 145¹, 2° and 3°, and in paragraph 1^er when:
1° the taxpayer concluded:
- between 1^er January 2005 and December 31, 2013 a mortgage to acquire or maintain a single home while for the same home, there was another loan referred to in § 1^erParagraph 1^er, 1°, or § 2, paragraph 1^er, 1°, which enters into account for the deduction for mortgage interest or for housing savings or;
- an individual life insurance contract that is used exclusively for the reconstruction or guarantee of a loan referred to in (a);
2° and the taxpayer referred to in its taxable period statement in which a loan referred to in (a) or a contract referred to in (b) was contracted, that it opts for the application of the single dwelling deduction referred to in section 104, 9°, as it existed before being repealed by section 20 of the Act of May 8, 2014;
This choice is final, irrevocable and binds the taxpayer.
When a common taxation is established, both taxpayers must make the same choice. ";
2° in paragraph 4 the words "at articles 178 or 518" are replaced by the words "at article 178". ".
Art. 102. In section 526 of the same Code, replaced by the Act of 27 December 2005 and amended by the Acts of 25 April 2007 and 13 December 2012 and by section 101 of this Act, the following amendments are made:
1° paragraph 1^erParagraph 1^er, is replaced by the following:
§ 1^er. This subsection is applicable where the following conditions are met:
1° the taxpayer has entered into one or more mortgages to build, acquire or transform its unique dwelling:
(a) before 1^er January 2005;
(b) from 1^er January 2005 and no later than December 31, 2013, while for the same home, there is another mortgage loan referred to in (a) that comes into account for the deduction of interest;
2° the dwelling for which the mortgages referred to in 1° were contracted, was the taxpayer's own dwelling, and it became a dwelling other than the clean dwelling before 1^er January 2016;
3° the taxpayer applied for the preceding tax period the application of sections 104, 9°, 115 and 116, as they existed before being amended or repealed by sections 394 and 395 of the Program Act of 27 December 2004, for the interests of mortgages referred to in 1°. ";
Paragraph 2 is replaced by the following:
"§2. This subsection is applicable where the following conditions are met:
1° the taxpayer has entered into one or more mortgages to build, acquire or transform its unique dwelling:
(a) before 1^er January 2005;
(b) from 1^er January 2005 and no later than December 31, 2013, while for the same home, there is another mortgage loan referred to in (a) that comes into account for the deduction of mortgage interest or for housing savings;
2° the dwelling for which the mortgage loan referred to in 1° was contracted, was the taxpayer's own dwelling, and it became a dwelling other than the clean dwelling before 1^er January 2016;
3° the taxpayer applied for the preceding tax period the application of sections 145¹⁷ to 145²⁰, as they existed before being repealed by section 400 of the Program Act of December 27, 2004, for payments for mortgages referred to in the 1st and for contributions paid pursuant to an insurance contract that is used exclusively for the reconstruction or guarantee of these mortgages.
In this case, the taxpayer may apply sections 145¹⁷ to 145²⁰, as they existed before being repealed by section 400 of the Program Act of 27 December 2004, for amounts allocated to amortization or replenishment of a mortgage referred to in paragraph 1^er, 1°, or contributions paid under a contract that is used exclusively for the reconstruction or guarantee of this mortgage. ".
Art. 103. In section 527, paragraphs 1^er and 3, of the same Code, inserted by the law of 27 December 2004, the words "Article 104, 9°, " are each time replaced by the words "Article 104, 9°, as it existed before being repealed by Article 20 of the law of 8 May 2014,".
Art. 104. Article 535, paragraph 1^erthe same Code, inserted by the Act of 28 December 2011 and replaced by the Act of 21 December 2013, is supplemented by the following:
", being understood that:
- where a common taxation is established, the tax reduction shall be apportioned in proportion to the income tax imposed in accordance with section 130 of each spouse in all income taxed in accordance with section 130 of the two spouses;
- the tax reduction is considered to determine the average rates referred to in 171, 5° and 6°;
- the tax reduction is charged in accordance with section 178/1, after the tax reduction referred to in section 145²⁴§ 1^er".
Art. 105. In title X of the same Code, an article 539 is inserted, as follows:
"Art. 539. § 1^er. This article shall apply:
1° where mortgages contracted for the acquisition or retention of the single dwelling were entered into from 1^er January 2005 and no later than 31 December 2013;
2° when it comes to life insurance contracts that are used exclusively for the reconstruction or guarantee of a mortgage loan referred to in 1°.
In these cases, the taxpayer may apply for these loans and contracts the application of sections 104, 9°, 115, 116, 145¹, 2° and 3°, and 242, § 2, as they existed before being amended or repealed by articles 20, 22, 24 and 74 of the Act of 8 May 2014, provided that:
1° the benefit is granted as a tax reduction;
2° the maximum amount for which the tax reduction may be granted, determined in accordance with Articles 115, § 1^erParagraph 1^er, 6°, and 116 referred to above, is reduced by the amount of expenditures made to acquire or retain the own dwelling for which reductions referred to in Articles 145³⁷ and 145³⁹ may be granted;
3° the tax reduction is calculated at the highest tax rate applied to the taxpayer and referred to in section 130, with a minimum of 30 p.c. In the event that the expenditures to be considered for the reduction relate to more than one tax rate, the tax rate applicable to each part of these expenditures should be retained;
4° where a common taxation is established and both spouses have made expenditures for which the application of the above-mentioned articles is requested, spouses may freely distribute these expenses within the limits specified in Articles 115, § 1^erParagraph 1^er6°, and 116 referred to;
5° the tax reduction is charged in accordance with section 178/1, after the tax reduction referred to in section 145¹, 1° ;
6° the tax reduction is considered to determine the average rates referred to in 171, 5° and 6°.
The tax reduction is granted as long as the housing for which the mortgage has been contracted is not the taxpayer's own home at the time the expenses were made.
§ 2. The interests of the loans referred to in § 1^erParagraph 1^erfor which the taxpayer has applied in accordance with § 1^er, paragraph 2, the application of the articles referred to therein shall not be considered for the purposes of section 14.
The amount for which the tax reduction is granted is deducted from the amount referred to in section 145⁶Paragraph 1^er, first dash, without taking into account the difference between any majorations referred to in Article 116 referred to in § 1^erparagraph 2, and any increases referred to in section 145³⁷§ 2, paragraphs 2 and 3, for which the tax reduction referred to in this same article may be granted.
§ 3. The amounts expressed in euros referred to in articles 115 and 116 mentioned in § 1^er, paragraph 2, shall be adapted, as the case may be, annually and simultaneously to the Consumer Price Index of the Kingdom in accordance with section 178. ".
Art. 106. Article 539, § 1^erParagraph 1^er, of the same Code, inserted by section 105 of this Act, is replaced by the following:
§ 1^er. This section is applicable where the following conditions are met:
1° the taxpayer has concluded from 1^er January 2005 and no later than December 31, 2013 one or more mortgages to build, acquire or transform its unique home;
2° the dwelling for which a mortgage referred to in 1° was contracted, was the taxpayer's own home and became a dwelling other than the clean dwelling before 1^er January 2016;
3° the taxpayer requested for the preceding tax period the application of sections 104, 9°, 115, 116 and 145¹, 2° and 3°, as they existed before being amended or repealed by sections 20, 22 and 24 of the Act of May 8, 2014, for payments for mortgage loans referred to in 1° and for contributions paid pursuant to an insurance contract that serves exclusively for the reconstruction or guarantee of such mortgage loans. ".
Art. 107. In title X of the same Code, an article 540 is inserted, as follows:
"Art. 540. Article 19, § 1^erParagraph 1^er, 3°, has, as it existed before being replaced by section 13 of the Act of 8 May 2014, remains applicable to the revenues included in the capitals and values of redemption liquidated in the event of life, provided that no premium for the contracts referred to in it that are payable online for the single dwelling deduction referred to in section 104, 9°, as it existed before being repealed by section 20 of the Act
Article 34, § 1^er, 2°, paragraph 1^er, d, as it existed before being amended by section 15 of the Act of 8 May 2014, remains applicable as long as the capital, the redemption of life insurance contracts, pensions, supplementary pensions and annuities referred to therein, is constituted in whole or in part by means of contributions as referred to in section 104, 9°, as it existed before being repealed by section 20 of the Act of 8 May 2014,
Section 34, § 5, as it existed before being amended by section 15 of the Act of 8 May 2014 remains applicable to the extent that the redemption values referred to therein are made in whole or in part by means of contributions as referred to in section 104, 9°, as it existed before being repealed by section 20 of the Act of 8 May 2014 or remained applicable under section 539.
Section 39, § 2, 2°, has, as it existed before being replaced by section16 of the Act of 8 May 2014, remains applicable provided that capital, values of redemption of life insurance contracts, pensions, supplementary pensions and annuities referred to therein, is constituted in whole or in part by means of contributions as referred to in section 104, 9°, as it existed before being repealed by the law
Article 169, § 1^erParagraph 1^er, as it existed before being replaced by section 66 of the Act of 8 May 2014 remains applicable to the extent that the redemption values referred to therein are made in whole or in part by means of contributions as referred to in section 104, 9°, as it existed before being repealed by section 20 of the Act of 8 May 2014 or remained applicable under section 539.
Section 171, 2°, d, as it existed before being amended by section 67 of the Act of 8 May 2014 remains applicable as long as it was capital and redemption values referred to in section 104, 9°, as it existed before being repealed by section 20 of the Act of 8 May 2014 or remained applicable under section 539. ".
Art. 108. Sections 99 to 101, 103 to 105 and 107 are applicable from the 2015 taxation year.
Sections 102 and 106 are applicable from the 2017 taxation year.
CHAPTER 4. - Authorization for coordination
Art. 109. The King may coordinate, in whole or in part, the provisions of the Income Tax Code of 10 April 1992 and the provisions that would have expressly or implicitly amended them at the time of coordination.
To this end, He may:
1° amend the order, numbering and, in general, the presentation of the provisions to be coordinated;
2° amend the references contained in the provisions to be coordinated with a view to aligning them with the new numbering;
3° amend the drafting of the provisions to be coordinated in order to ensure their consistency and to unify the terminology without prejudice to the principles set out in these provisions;
4° incorporate into the Code the provisions of RA/CIR 92 which have been confirmed by a law;
The Royal Coordinating Order will be the subject of a bill of confirmation which will be submitted immediately to the Legislative Chambers.
Coordination will only have effect on the date set by the Confirmation Act.
The co-ordination will bear the following title: "Revenue Tax Code", followed by the vintage of the year in which the confirmation law will come into force.
CHAPTER 5. - Amendment of the Act of 6 January 2014 on the Sixth State Reform concerning the matters referred to in Article 78 of the Constitution
Art. 110. Article 15 of the Law of 6 January 2014 on the Sixth Reform of the State concerning the matters referred to in Article 78 of the Constitution is replaced by the following:
"Art. 15. In article 180 of the Income Tax Code 1992, last amended by the Act of 21 December 2013, 5° bis is supplemented by the words ", the Participation Fund - Flanders, the Participation Fund - Wallonia and the Participation Fund - Brussels.".
Promulgate this Act, order that it be put on the State Seal and published by the Belgian Monitor.
Given in Brussels on 8 May 2014.
PHILIPPE
By the King:
Minister of Finance,
K. GEENS
Seal of the state seal:
The Minister of Justice,
Ms. A. TURTELBOOM
____
Note
(1) House of Representatives (www.lachambre.be):
Documents: 53-5327
Full report: 22 April 2014.
Senate (www.senate.be):
Documents: 5-2857
Annales du Senate: April 24, 2014.