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Law Reform Of Income Tax Of Physical Persons (1)

Original Language Title: Loi portant réforme de l'impôt des personnes physiques (1)

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10 AOUT 2001. - Law Reforming the Tax of Physical Persons (1)



ALBERT II, King of the Belgians,
To all, present and to come, Hi.
The Chambers adopted and We sanction the following:
Article 1er. This law regulates a matter referred to in Article 78 of the Constitution.
Art. 2. Section 2 of the Income Tax Code 1992 is replaced by the following provision:
"Art. 2. For the purposes of this Code, specific statutory provisions relating to income taxes and orders made for their enforcement, the following terms have the meaning defined in this section.
1° Habitants of the Kingdom
By the inhabitants of the Kingdom:
(a) the natural persons who have established their domicile or the seat of their fortune in Belgium;
(b) Belgian diplomatic agents and Belgian career consular agents accredited abroad, as well as members of their families living in their homes;
(c) other members of Belgian diplomatic missions and consular posts abroad, as well as members of their families living in their homes, excluding honorary consular officials;
(d) other officials, agents and representatives or delegates of the Belgian State, of the Communities, Regions, Provinces, agglomerations, federations of communes and communes, as well as Belgian public law institutions, which have Belgian nationality and carry out their activities abroad in a country of which they are not permanent residents.
The establishment in Belgium of the home or siege of fortune is appreciated according to the factual elements. However, unless otherwise proved, they are presumed to have established in Belgium their domicile or the seat of their fortune, the natural persons who are registered in the National Register of Physical Persons.
For married persons who are not in one of the cases referred to in Article 126, § 2, paragraph 1er, the tax home is located where the household is established.
2° Married and spouses - legal cohabitation
Legal cohabitants are considered married and a legal cohabitant is considered to be a spouse.
3° Imposition commune
By common taxation, a single taxation is defined on behalf of both spouses or both legal cohabitants.
4° Children
Children are defined as the descendants of the taxpayer and the descendants of the taxpayer and those of the taxpayer's spouse, as well as the children of which the taxpayer bears the exclusive or primary responsibility.
5° Corporations
We hear:
(a) society: any company, association, institution or organization that is regularly constituted that has the legal personality and engages in a profit-making operation or operation.
Belgian legal bodies with legal personality who, for the purposes of income taxes, are supposed to be deprived of legal personality, are not considered to be companies;
(b) a resident corporation: any corporation that has in Belgium its head office, principal institution or headquarters of management or administration and that is not excluded from the scope of corporate tax;
(c) foreign company: any company that does not have in Belgium its head office, principal institution or head office or administration seat;
(d) financing company: any company whose activity consists solely or principally of the provision of financial services to companies that do not form a group directly or indirectly with the provider corporation;
(e) treasury corporation: any corporation whose exclusive or principal activity consists of making cash investments;
(f) investment company: any corporation whose purpose is to invest in collective capital investment.
6° Capital released
By released capital, we mean the social capital actually released within the meaning of what is envisaged in corporate tax.
7° Revalued value
Revalued value means the value attributed to the assets assigned to the exercise of the business activity and to the capital released after revalued the acquisition or investment value of these assets or capital, by applying the coefficients mentioned below, as the case may be, following the year of investment of these assets or the release, reduction or repayment of capital:
Years Applicable coefficients
1918 and previous 16,33
1919 11,49
1920 6.15
1921 6.30
1922 6.43
1923 4.37
1924 3.89
1925 4.02
1926 2.72
1927 to 1934 included 2,35
1935 1.86
1936 to 1943 included 1.70
1944 to 1948 included 1,14
1949 1.10
1950 and following 1.0
8° Fixed income
Fixed-income securities are defined as bonds, vouchers and other similar securities, including securities that are capitalized or securities that do not give rise to a periodic payment of income and that have been issued with a discount corresponding to the capitalized interest up to the maturity of the title.
Also considered fixed income securities, contracts relating to capitalization transactions providing for single or periodic payments, independent commitments of any random event related to human life, commitments whose duration and amount result from the terms of the contract.
9° The terms "intangible, bodily or financial assets", "establishment fees" and "stocks and orders in execution" have the meaning assigned to them by the accounting and annual accounts legislation of the companies. ".
Art. 3. Section 3 of the same Code, inserted by the Act of 6 July 1994, is replaced by the following provision:
"Art. 3. The inhabitants of the Kingdom are subject to the tax of natural persons.".
Art. 4. Section 14 of the same Code, replaced by the Act of 6 July 1994, is supplemented by the following paragraph:
"When a common taxation is established and the deductions referred to in paragraph 1er and related to one of the taxpayers exceed its real property income, the balance is charged to the income of the other taxpayer's real property. ".
Art. 5. Section 16 of the same Code, as amended by the Royal Decree of 20 July 2000, is replaced by the following provision:
"Art. 16. § 1er. When the taxpayer occupies a dwelling of which he owns, possessor, emphyteot, superficial or usufructier, a deduction for dwelling is made on the cadastral income of that dwelling.
For the purposes of this section, cadastral income of the dwelling must be understood, the balance of that income that remains by taxpayer after the application of section 14.
§ 2. When the taxpayer occupies more than one dwelling, the housing deduction is only granted for one dwelling to its choice.
The deduction for housing is also granted where such dwelling is not personally occupied by the taxpayer for professional or social reasons.
The home deduction is not granted for the portion of the dwelling assigned to the performance of the taxpayer's business activity or of one of the members of the taxpayer's household or that is occupied by persons not part of the taxpayer's household.
§ 3. When married taxpayers occupy more than one dwelling, the housing deduction is only granted for the dwelling of their choice occupied by both spouses. The deduction may, however, be granted for a dwelling that spouses or one of them does not take personal care of for professional or social reasons.
§ 4. The home deduction is EUR 3,000.
The home deduction is increased by EUR 250 for any person who, pursuant to section 136, is dependant on the taxpayer on 1er January of the year in which the vintage is the taxation year. When a common taxation is established and the dwelling is shared by both spouses, this increase is distributed among them in proportion to their share of the cadastral income of the dwelling.
The increase in the home deduction is determined based on the maximum number of children the taxpayer has dependant on the 1er January of a previous year if it still occupies the same dwelling and provided that the calculation gives a deduction greater than that resulting from the application of paragraph 2.
§ 5. When the total net income of the taxpayer does not exceed EUR 23,500, the housing deduction, determined in accordance with § 4, is increased by half of the difference between the cadastral income of the dwelling and the deduction for the dwelling.
The exceedance of the limit of EUR 23,500 may not have the effect of reducing the increase resulting from the application of paragraph 1er more than half of the difference between all net revenues and this limit.
§ 6. When a common taxation is established and the housing deduction for one of the spouses is greater than its share of the cadastral income of the dwelling, the balance is charged to the share of the cadastral income of the other spouse without being able to exceed that share."
Art. 6. Article 38, paragraph 1er, 9°, of the same Code, replaced by the Act of 10July 2001, is replaced by the following provision:
"9° for the worker, whose professional costs are fixed on a lump-sum basis in accordance with section 51, the allowances granted by the employer in refund or payment of the travel expenses of the home to the place of work, to the extent that the worker uses to carry out this displacement:
(a) public public transit: for the total amount of compensation;
(b) a collective transportation of staff members organized by the employer or by a group of employers: for a limited amount at the price of a first class subscription in train for that distance;
(c) another means of transport than those covered under a or b: for a maximum amount of EUR 125 per year;".
Art. 7. A. In article 51, paragraph 2, 1°, of the same Code, replaced by the Act of 6 July 1994 and amended by the Royal Decrees of 20 December 1996 and 20 July 2000, the words "20 p.c." are replaced by the words "23 p.c.".
B. In the same article, the words "23 p.c." are replaced by the words "25 p.c.".
Art. 8. In section 52 of the same Code, amended by the Acts of 28 December 1992, 30 March 1994 and 20 December 1995, by the Royal Decree of 20 December 1996 and by the Act of 22 December 1998, the words "of articles 53 to 66" are replaced by the words "of articles 53 to 66bis".
Art. 9. In the same Code, an article 66bis is inserted:
"Art. 66bis. The professional costs associated with the movement between the home and the place of work other than those carried out by a vehicle referred to in section 66, § 5, are, in the absence of evidence, fixed flatly at EUR 0.15 per kilometre travelled without the distance taken into account in the place of work exceeding 25 kilometres.
The King may, by order deliberately in the Council of Ministers, increase the limit of 25 kilometres. ".
Art. 10. Article 86, paragraph 1erthe same Code, as amended by the Royal Decrees of 20 December 1996 and 20 July 2000, is replaced by the following provision:
"When a joint taxation is established by two spouses, a share of the profits or profits of the activity of one of them may be attributed as income of that activity to the other spouse who actually assists him in the exercise of that work activity, provided that the assisting spouse did not personally benefit, during the tax period, of professional income from a separate activity of more than EUR 8,700."
Art. 11. A. Article 87, paragraph 1erthe same Code, as amended by the Royal Decree of 20 July 2000, is supplemented as follows:
", unless the contribution is increased."
B. The same paragraph shall be replaced as follows:
"When a common taxation is established and only one of the spouses has a professional income, a share is charged to the other spouse, unless the tax is increased. ".
Art. 12. A. Section 88 of the same Code, as amended by the Royal Decree of 20 July 2000, is supplemented by the following paragraph:
"This provision does not apply when the contribution is increased. ".
B. The following amendments are made in the same article:
1° to paragraph 1er, the words "When the contribution is made on behalf of both spouses" are replaced by the words "When a common taxation is established";
2° in the French text of paragraph 2, the word "collection" is replaced by the word "taxation".
Art. 13. Section 89 of the Code is supplemented by the following paragraph:
"When the professional income of one of the spouses falls within two or more categories referred to in section 23 and a share of these professional income is attributed or charged to the other spouse, this share is made up proportionally of professional income of the same categories. ".
Art. 14. In the Dutch text of Article 90, 9°, of the same Code, the word "echtgenote" is replaced by the word "echtgenoot".
Art. 15. In Article 102 of the same Code, the words "in accordance with Article 2, § 6" are replaced by the words "in accordance with Article 2, 7°".
Art. 16. Section 105 of the Code, as amended by the Acts of 28 December 1992 and 6 July 1994, is replaced by the following provision:
"Art. 105. When a common taxation is established, the deductions referred to in section 104, 3° to 9°, shall be charged in the first place, according to the proportional rule, on all the net revenues of the two taxpayers. The deductions referred to in 1° and 2° of this section are then charged by priority on all of the taxpayer's net income that is obligatory to the expenditures and the potential balance is charged to all the net income of the other taxpayer. ".
Art. 17. In the Dutch text of Article 109 of the same Code, amended by the law of 27 October 1997 and by the royal decree of 20 July 2000, the words "van de netto-inkomsten", are replaced by the words "van het total netto-inkomen".
Art. 18. The title of Section VII of Chapter II of Part II of the same Code is replaced by the following title: "Section VII.-Imposition common of spouses and legal residents. ".
Art. 19. A. Section 126 of the Code is replaced by the following provision:
"Art. 126. § 1er. Regardless of the matrimonial regime, the income of spouses other than professional income is accumulated with the professional income of spouses who have the most.
§ 2. The contribution is made on behalf of both spouses.
§ 3. By derogation from section 128, paragraph 1er, 3°, the surviving spouse may opt for the year of the dissolution by death of the marriage or legal cohabitation, for taxation established in accordance with the provisions of § 1er. In this case, the taxation is established on behalf of the surviving spouse and deceased spouse, represented by the estate.
When both spouses have died, the choice referred to in paragraph 1er may be done by heirs or universal legatees or donates. In this case, the taxation is established on behalf of the two deceased spouses represented by the estate.
§ 4. Children ' s income is accumulated with their parents ' incomes as long as they have the legal enjoyment of their children ' s income. ".
B. In the same article, §§ 1er and 2 are replaced by the following provision:
"§ 1er. In the event of marriage or legal cohabitation, a common taxation is established on behalf of both spouses. Notwithstanding this common taxation, the taxable income of each spouse is fixed separately.
§ 2. § 1er is not applicable in the following cases:
1° for the year of marriage or declaration of legal cohabitation;
2° from the year following the year in which a de facto separation occurred, provided that this separation is effective throughout the taxable period;
3° for the year of dissolution of marriage or separation of body, or termination of legal cohabitation;
4° where a spouse collects professional income for an amount greater than 6,700 EUR that is conventionally exempt and that do not intervene in computing the tax for his other income.
§ 1er However, it remains applicable for the year in which legal cohabitants contract marriage, unless the legal cohabitation declaration was made the same year.
In the case referred to in paragraph 1er, 2°, both taxations are carried on behalf of both spouses. ".
C. Paragraph 3, paragraph 1erin the same article, the words "by derogation from article 128, paragraph 1er, 3°," are deleted.
Art. 20. Section 127 of the same Code is replaced by the following provision:
"Art. 127. When a common taxation is established, it shall be taken into account when determining all the net income of each taxpayer:
1° of the share of its professional income as determined after application of sections 86 to 89;
2° of the income referred to in Article 90, 1° to 4°, that it realizes or is attributed to it;
3° of own income under the property rights not covered by 1° and 2°;
4° 50 p.c. of all other incomes of both taxpayers. ".
Art. 21. Section 128 of the same Code, as amended by the Act of 4 May 1999 and the Royal Decree of 20 July 2000, is repealed.
Art. 22. Section 130 of the same Code, as amended by the Royal Decree of 20 July 2000, is replaced as follows:
A. "Art. 130. The tax is fixed to:
25 p.c. for the income bracket from EUR 0.01 to EUR 5,705.00;
30 p.c. for the 5,705.00 EUR to 7,565.00 EUR;
40 p.c. for the 7 565,00 EUR to 10 785,00 EUR;
45 p.c. for the 10,785.00 EUR to 24,800.00 EUR;
50 p.c. for the 24,800.00 EUR to 37,185.00 EUR;
52 p.c. for the slice above 37 185,00 EUR. ".
B. "Art. 130. The tax is fixed to:
25 p.c. for the income bracket from EUR 0.01 to EUR 5,705.00;
30 p.c. for the 5,705.00 EUR to 8,120.00 EUR;
40 p.c. for 8,120.00 EUR to 12,120.00 EUR;
45 p.c. for 12,120.00 EUR to 24,800.00 EUR;
50 p.c. for the slice greater than EUR 24,800.00.".
C. "Art. 130. The tax is fixed to:
25 p.c. for the income bracket from EUR 0.01 to EUR 5,705.00;
30 p.c. for the 5,705.00 EUR to 8,120.00 EUR;
40 p.c. for the 8,120.00 EUR to 13,530.00 EUR;
45 p.c. for the 13,530.00 EUR to 24,800.00 EUR;
50 p.c. for the slice greater than EUR 24,800.00.
When a common taxation, the tax rate is applied to each taxpayer's taxable income. ".
Art. 23. A. In section 131, 2°, of the same Code, amended by the Act of 4 May 1999 and by the Royal Decree of 20 July 2000, the amount of EUR 3,250 is replaced by the amount of EUR 3.390.
B. The same article is replaced by the following provision:
"Art. 131. For tax purposes, a basic amount of EUR 4,095 is tax-free.
This amount is increased by EUR 870 when the taxpayer is disabled.".
Art. 24. In section 132 of the same Code, as amended by the laws of 6 July 1994 and 24 December 1999 and by the Royal Decree of 20 July 2000, the following amendments are made:
1° in the opening sentence of paragraph 1er, the words "The basic amounts referred to in section 131 are plus the following supplements for dependants:" are replaced by the words "The amount exempted under section 131 is plus the following supplements for dependants:";
2° in paragraph 2, the words "and other dependants" are inserted between the words "children" and the words "considered as disabled".
Art. 25. A. In section 133 of the same Code, amended by the Act of 4 May 1999 and by the Royal Decree of 20 July 2000, § 2 is repealed.
B. In the same article, § 1er, 1°, is replaced by the following provision:
"1° 870 EUR for a taxpayer imposed in isolation and having one or more dependent children."
C. The same article is replaced by the following provision:
"Art. 133. The amount exempted under section 131 is, moreover, plus the following supplements:
1° 870 EUR for a taxpayer imposed in isolation and having one or more dependent children;
2° 870 EUR where an imposition is established by a taxpayer for the year of marriage or legal cohabitation declaration and provided that the spouse has not received resources in a net amount greater than 1.500 EUR.".
Art. 26. A. Section 134 of the same Code, as amended by the Act of 4 May 1999 and the Royal Decree of 20 July 2000, is replaced by the following provision:
"Art. 134. § 1er. The basic amount referred to in section 131, 2°, shall be charged against that of the shares of the income referred to in section 127, which constitutes or includes the income of the spouse concerned. Where one of the said shares is less than the amount referred to in section 131, 2°, the balance is charged to the other portion of the income.
The increases referred to in sections 132 and 133, 2 and 3 are then charged by priority on the share of the income of the spouses with the highest professional income. When this share of income is less than the total of the increases, the balance is charged to the other portion of the income.
§ 2. The tax-exempt income quotity is charged by a taxpayer on the successive income brackets, beginning with the first.
§ 3. The portion of the tax-exempt income quotity that is not charged after application of §§ 1er and 2, is, to the extent that it relates to supplements referred to in section 132, paragraph 1er, 1° to 6°, converted to a refundable tax credit.
The tax credit is equal to the portion of the tax-exempt income quotity that may be converted under paragraph 1ermultiplied by the tax rate applicable to the corresponding income bracket, with a maximum of EUR 250 per dependent child.".
B. In the same article, § 1er is replaced by the following provision:
"§ 1er. The tax-exempt income quotity is fixed by taxpayer and includes the total of the base amount, possibly increased, and supplements referred to in sections 132 and 133.
Where a common taxation is established, the surcharges referred to in section 132 shall be charged to the chief of the taxpayer who has the highest taxable income. When the taxable income of one of the two taxpayers is less than the tax-exempt income quotity, the difference is added to the tax-exempt income quotity of the other taxpayer. ".
Art. 27. In section 136 of the same Code, as amended by the Royal Decree of 20 July 2000, the words "spouses or isolated persons" are replaced by the words "taxpayers".
Art. 28. Section 141 of the same Code, as amended by the Royal Decree of 20 July 2000, is replaced by the following provision:
"Art. 141. The amounts of EUR 1,500 referred to in sections 136 and 140 are charged to EUR 2,600 for dependent children of a single taxpayer and EUR 3,000 for children considered to be dependent on a taxpayer. ".
Art. 29. Article 143 of the same Code is supplemented by the following provision:
"6° of food rents referred to in Article 90, 3°, which are allocated to children, up to EUR 1,800 per year."
Art. 30. Article 1452 the same Code, inserted by the Act of 28 December 1992, is replaced by the following provision:
"Art. 1452 The reduction is calculated at the special average rate that corresponds to the tax calculated in accordance with sections 127, 130, 131, paragraph 1er and 134, § 2, on taxable income, not including income taxed separately under section 171.
The tax rate so determined cannot be less than 30 p.c., nor more than 40 p.c.".
Art. 31. Article 1454 the same Code, inserted by the Act of 28 December 1992, is amended as follows:
1° in 1°, b, the words "or 60 years after it is a man or a woman" and the words "or 60 years" are deleted;
2° in 2°, a, the words "or 60 years, as it is a man or a woman" are deleted.
Art. 32. Article 14523 the same Code, inserted by the Act of 30 March 1994, is replaced by the following provision:
"Art. 14523 Where a common taxation is established, the expenses referred to in section 14521 shall be apportioned, according to the proportional rule, on each taxable income. ".
Art. 33. A. In title II, chapter III, section I, a sub-section IIquinquies is inserted, as follows:
"Subsection IIquinquies. Reduction for spending to save energy
Art. 14524 A tax reduction is granted for the expenses listed below that are actually paid during the taxable period for a more rational use of energy in a dwelling of which the taxpayer is the owner, owner, emphytéote, superficiary or usufruitar:
1° expenses for the replacement of old boilers;
2° expenses for the installation of a sanitary water heating system by using solar energy;
3° expenses for the installation of photovoltaic panels to transform solar energy into electrical energy;
4° expenses for double glazing installation;
5° expenses for roof insulation;
6° expenses for placing a central heating system regulation by means of thermostatic valves or a clock atmosphere thermostat;
7° expenses for a home energy audit.
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.
The tax reduction is equal to the following percentage of actual expenditures:
(a) 15 p.c. for expenditures referred to in paragraph 1er1° to 3°;
(b) 40 p.c. for expenditures referred to in paragraph 1er4° to 7°.
The total amount of the various tax reductions may not exceed per taxable period 500 EUR per dwelling.
The amount referred to in the previous paragraph may be increased to EUR 1,000 by the King by order in Council of Ministers.
Where an imposition is established in accordance with Article 126, §§ 1er and 2, the tax reduction is distributed proportionally according to the quotity of each spouse in the cadastral income of the dwelling in which the work is carried out.
The King sets out the conditions to which work on the expenses referred to in paragraph 1 must be met.er. »
B. In the same article the words "When an imposition is established in accordance with Article 126, §§ 1er and 2," are replaced by the words "When a common taxation is established."
Art. 34. In section 146 of the same Code, as amended by the Acts of 30 March 1994, 21 December 1994, 7 April 1999 and, with regard to the French text, by the Act of 6 July 1994, the following amendments are made:
1° in 1°, the words "prepensions not covered by 2°" are replaced by the words "prepensions not covered by 2° and 2°bis";
2° it is inserted a 2°bis written as follows:
"2°bis prepensions new regime: the prepensions that took place from 1er January 2004; "
Art. 35. Section 147 of the same Code, replaced by the Act of 30 March 1994, is replaced by the following provision:
"Art. 147. On pension and alternative income tax, the following reductions are granted:
1° where net income consists exclusively of pensions or other alternative income: EUR 1,344.57;
2° where net income is partially comprised of pensions or other alternative income: a quotity of the amount referred to in 1°, proportional to the ratio between, on the one hand, the net amount of pensions and other alternative income and, on the other, the amount of net income;
3° when net income consists exclusively of old plan prepensions: EUR 2,434.66;
4° where net income is partially comprised of pre-expenditures: a quotity of the amount referred to in 3°, proportional to the ratio between, on the one hand, the net amount of pre-expenditures and, on the other, the amount of net income;
5° where net income consists exclusively of new plan prepensions:
(a) for a taxpayer imposed in isolation: EUR 1,344.57;
(b) for both spouses, where common taxation is established: EUR 1,569.96;
6° where net income is partially composed of new plan prepensions: a quotity of the amounts referred to in the 5°, proportional to the ratio between, on the one hand, the net amount of the new plan and, on the other, the amount of the net income;
7° where net income consists exclusively of unemployment benefits:
(a) for a taxpayer imposed in isolation: EUR 1,344.57;
(b) for both spouses, where common taxation is established: EUR 1,569.96;
8° where net income is partially composed of unemployment benefits: a quotity of the amounts referred to in 7°, proportional to the ratio between, on the one hand, the net amount of unemployment benefits and, on the other, the amount of net income;
9° where net income consists exclusively of statutory sickness or disability insurance benefits: EUR 1,725.98;
10° where the net income is partially comprised of statutory sickness or disability insurance benefits: a quotity of the amount referred to in 9°, proportional to the ratio between, on the one hand, the net amount of legal insurance in the event of illness or disability and, on the other, the amount of net income."
Art. 36. Section 149 of the same Code is replaced by the following provision:
"Art. 149. For the purposes of this subsection:
1° the net amount of pensions and replacement income is determined in accordance with Article 23, § 2, before application of Articles 87 and 88;
2° by "net income" means all the net income of each taxpayer without the application of sections 87 and 88. ".
Art. 37. Section 150 of the same Code is replaced by the following provision:
"Art. 150. Where a common taxation is established, the reductions and limits set out in this subsection, excluding the reduction for unemployment benefits and the reduction for new plans, are calculated by taxpayer.
The reduction for unemployment benefits and the reduction for new plans are calculated for both spouses. For this purpose, unemployment benefits, new plans, net incomes and taxable incomes of both spouses are added, respectively, to calculate reductions and limits.
The reduction for unemployment benefits and the reduction for new plans calculated in accordance with paragraph 2 are then apportioned by taxpayer in proportion to the quotity of its unemployment benefits and the quotity of its new plans, respectively, in the total unemployment benefits and the total of the new plans of the two spouses. ".
Art. 38. Section 151 of the same Code, replaced by the Royal Decree of 14 November 1996 and amended by the Royal Decree of 20 July 2000, is replaced by the following provision:
"Art. 151. When taxable income reaches or exceeds EUR 18,600, the reduction in unemployment benefits, other than those attributed to unemployed persons aged 58 years or older than 1er January of the taxation year and including an additional seniority, is not granted. When the taxable income is between EUR 14,900 and EUR 18,600, this reduction is granted only to a quotity determined by the ratio between, on the one hand, the difference between EUR 18,600 and taxable income and, on the other hand, the difference between EUR 18,600 and EUR 14,900.".
Art. 39. Section 152 of the same Code, as amended by the Royal Decree of 20 July 2000, is replaced by the following provision:
"Art. 152. Where taxable income reaches or exceeds EUR 29,800, reductions other than those referred to in section 151 are granted only to a third party. When the taxable income is between EUR 14,900 and EUR 29,800, this third-party limit is increased by a quotity of the remaining two-thirds, determined by the ratio between the difference between EUR 29,800 and taxable income and the difference between EUR 29,800 and EUR 14,900.".
Art. 40. Section 154 of the Code, as amended by the Acts of 30 March 1994 and 21 December 1994, is replaced by the following provision:
"Art.154. No tax is payable when all net revenues consist exclusively of:
1° of pension or alternative income and that the total amount of such income does not exceed the maximum amount of the legal unemployment benefit, not including the old-age supplement granted to older unemployed persons;
2° of pre-expensions and that the amount of these revenues does not exceed the maximum amount of the pre-pension referred to in collective agreement No. 17 of 19 December 1974;
3° of unemployment benefits and that the amount of these benefits does not exceed the maximum amount of the legal unemployment benefit, if any, including the added amount of seniority granted to the unemployed, when the taxpayer has reached the age of 50 by 1er January of the taxation year;
4° of statutory health insurance in the event of illness or disability and that the amount of such income does not exceed the ten ninths of the maximum amount of the legal unemployment benefit, not including the old age supplement granted to the elderly unemployed.
When a common taxation is established, all net income of both spouses is considered for the purposes of paragraph 1er".
Art. 41. Section 155 of the same Code is supplemented by the following paragraph:
"When a common taxation is established, the reduction is calculated by taxpayer on all of its net income.".
Art. 42. Section 156 of the same Code, as amended by the Royal Decree of 20 December 1996, is supplemented by the following paragraph:
"When a common taxation is established, the reduction is calculated by taxpayer on all of its net income.".
Art. 43. Section 157 of the same Code, as amended by the Royal Decree of 20 December 1996, is supplemented by the following paragraph:
"The surplus of advance payments made by a spouse who assigns a portion of his or her profits or profits to the spouse assisting by application of section 86 shall be entitled to the spouse assisting."
Art. 44. In Article 178, § 4, of the same Code, amended by the Royal Decree of 20 July 2000, the words "Article 16, § 1er"are replaced by the words "Article 16, § 4".
Art. 45. Section 243 of the Code, as amended by the Acts of 28 July 1992, 30 March 1994, 6 July 1994 and 21 December 1994, are amended as follows:
1° paragraph 2 is replaced by the following provision:
"On the tax calculated in accordance with the preceding paragraph, the reductions provided for in sections 146 to 154 are granted within the limits and conditions established by these sections, taking into account all Belgian and foreign revenues, subject to the following exemptions:
1° the amounts mentioned in section 147, 1°, 5° and 7° are replaced by the amount of 2 392,67 EUR;
2° the amount referred to in section 147, 3°, is replaced by the amount of EUR 3,482.78;
3° the amount referred to in section 147, 9°, is replaced by the amount of EUR 2,774,10.";
2° the following paragraph is inserted between paragraphs 2 and 3:
"When a common taxation is established, where the income is wholly or partially composed of unemployment benefits or new plan prepensions, the reduction in these unemployment benefits and the reduction in these new plan prepensions, calculated in accordance with the preceding paragraph, are granted only once for both spouses. ".
Art. 46. In article 244bis, paragraph 1er, of the same Code, inserted by the Act of 28 December 1992 and amended by the Act of 6 July 1994 and by the Royal Decree of 20 July 2000, the words "married persons are considered not to be spouses but to be isolated," are replaced by the words "there is no common taxation of spouses".
Art. 47. Section 252 of the same Code is repealed.
Art. 48. In Article 289bis, § 1er, last paragraph, of the same Code, replaced by the Act of May 4, 1999, the words "When the assessment is made on behalf of both spouses," are replaced by the words "When a common taxation is established."
Art. 49. A. In the same Code, an article 289ter is inserted, as follows:
"Art. 289ter. § 1er. Where all of its net income in the taxable period does not exceed EUR 14,140, the inhabitant of the Kingdom is entitled to a tax credit that is determined on the basis of the amount of business income.
The amount of business income is equal to the net amount of professional income, reduced:
1° of income referred to in Article 23, § 1er5°;
2° of all or partial compensation for temporary loss of income;
3° of professional income taxed separately in accordance with section 171;
4° compensation for work benefits whose duration is less than one-third of the statutory period of work;
5° of profits or profits that are considered income from an incidental activity for the application of legislation relating to the social status of independent workers.
No tax credit is granted to the taxpayer who has earned profits or profits determined on a fixed basis for taxation.
Where an imposition is established in accordance with Article 126, §§ 1er and 2, the tax credit, income and limits are calculated by taxpayer before the application of sections 86 to 89.
§ 2. To qualify for the tax credit, the amount of business income must exceed EUR 3,260.
The amount of the tax credit is determined as follows:
1° where the amount of business income is more than EUR 3,260, while not exceeding EUR 4,350: EUR 78 multiplied by a fraction of which the numerator is equal to the difference between the amount of business income and EUR 3,260 and the denominator is equal to the difference between EUR 4,350 and EUR 3,260;
2° when the amount of business income is more than EUR 4,350, while not exceeding EUR 10,880: EUR 78;
3° when the amount of business income is more than EUR 10,880, while not exceeding EUR 14,140: EUR 78 multiplied by a fraction of which the numerator is equal to the difference between EUR 14,140 and the amount of business income and the denominator is equal to the difference between EUR 14,140 and EUR 10,880.
When the business income includes only part of the business income, the tax credit determined in accordance with paragraph 2 is reduced in proportion to the fraction of the business income in relation to the net amount of professional income.
When all net revenues are more than EUR 10,880, while not exceeding EUR 14,140, the tax credit may not exceed the proceeds of the increase of EUR 78 by a fraction of which the numerator is equal to the difference between EUR 14,140 and the amount of the total net revenues and the denominator is equal to the difference between EUR 14,140 and EUR 10,880.
§ 3. The provisions of section 178 shall apply to the amounts referred to in this section. ".
B. In the same section, the amount of EUR 78 is replaced each time by the amount of EUR 220.
C. In the same section, the amount of EUR 220 is replaced each time by the amount of EUR 440.
D. In the same article the words "When an imposition is established in accordance with Article 126, §§ 1er and 2," are replaced by the words "When a common taxation is established."
Art. 50. Section 290 of the Code, replaced by the Act of 22 July 1993 and amended by the Acts of 30 March 1994, 20 December 1995 and 4 May 1999, is replaced by the following provision:
"Art. 290. In the head of the inhabitants of the Kingdom:
1° the real estate pre-account, in the case and within the limits referred to in section 277, is charged to the tax of natural persons;
2° the lump-sum foreign tax quotity in the case referred to in section 285 and the tax credit referred to in section 289bis, § 1er, are attributable only to the quotity of the tax of natural persons, which is proportionally related to professional income;
3° the tax credit referred to in section 289ter is charged in full on the tax of natural persons. ".
Art. 51. In section 291 of the same Code, as amended by the Acts of 20 December 1995 and 4 May 1999, the following amendments are made:
1° in the Dutch text of paragraph 1er, the word "teruggeven" is replaced by the word "teruggegeven";
2° in paragraph 2, the words "When the tax credit could not be charged" are replaced by the words "When the tax credit referred to in section 289bis, § 1er, could not be charged";
3° in paragraph 3, the words "see paragraph 2" are inserted between the words "tax credit" and the words "are deferred".
Art. 52. Article 304, § 2, paragraph 1er, of the same Code, as amended by the Royal Decree of 20 July 2000, is replaced by the following provision:
"In the head of the inhabitants of the Kingdom, the possible excess of the advance payments referred to in sections 157 to 168 and 175, the professional pre-payments referred to in sections 270 to 272, the real or fictitious movable pre-payments referred to in sections 279 and 284 and the tax credits referred to in sections 134, § 3, and 289ter, shall be charged, if any, on the additional personal surplus taxes.
Art. 53. In Article 307, § 1er, paragraph 2, of the same Code, the words "Article 126, paragraph 2", are replaced by the words "Article 126, § 4,".
Art. 54. In section 355, paragraph 2, of the same Code, replaced by the Act of March 15, 1999, the words "a tax credit" are inserted between the words "return" and the words "a pre-payment or advance payment".
Art. 55. Article 376, § 3, 1°, of the same Code, replaced by the Act of 15 March 1999, is replaced by the following provision:
"1° of the excesses of the tax credit, pre-payments and advance payments referred to in section 304, § 2, provided that these excesses have been recognized by the administration or reported to the administration by the debtor or his spouse on the property of which the tax is being recovered, within three years from 1er January of the taxation year to which the tax on which this tax credit, such pre-payments and advance payments are payable; "
Art. 56. In article 393bis, paragraph 1er, of the same Code, inserted by the law of 4 May 1999, the words "Article 128, paragraph 1er, 2°," are replaced by the words "Article 126, § 2, paragraph 1er2°, ".
Art. 57. A. Section 394 of the Code, replaced by the Act of 4 May 1999, is amended as follows:
1° between § 1er and § 2, a new § 2 is inserted as follows:
"§2. By derogation from § 1er, in the event of a de facto separation of spouses, the income tax of one of the spouses obtained from the second calendar year following that of de facto separation shall no longer be recovered from the income of the other spouse or from the property acquired by the other spouse through such income. ";
2° in paragraph 1er§ 2 which becomes § 3, the words "in paragraph 1er" are replaced by the words "at §§ 1er and 2";
§ 3 becomes § 4;
4° in § 4, which becomes § 5, the words "at pre-payments" are replaced by the words "at taxes and pre-payments".
B. The same article is replaced by the following provision:
"Art. 394. § 1er. The tax or tax quotity of a spouse's taxable income and the pre-payment in the name of one spouse may, regardless of the matrimonial plan or any of the notarial agreement regulating the terms of the legal cohabitation, be recovered on all the property and common property of both spouses.
However, the tax or quotity of the tax on the taxable income of one of the spouses as well as the movable pre-payment and professional pre-payment entered on behalf of one spouse may not be recovered on the property of the other spouse where the other spouse may establish:
1° that he owned them before the marriage or before the conclusion of the declaration of legal cohabitation;
2° or derived from a succession or donation made by a person other than his or her spouse;
3° or has acquired them by means of funds from the realization of similar properties;
4° or that it is income that is specific to it under civil law or property acquired through such income.
§ 2. By derogation from § 1er, in the event of a de facto separation of spouses, the income tax of one of the spouses obtained from the second calendar year following that of de facto separation shall no longer be recovered from the income of the other spouse or from the property acquired by the other spouse through such income.
§ 3. After the dissolution of the marriage or the termination of the legal cohabitation within the meaning of Article 1476 of the Civil Code, the taxes and pre-payments relating to income obtained prior to the dissolution or termination by the spouses may be recovered on the property of the two spouses to the extent specified in §§ 1er and 2.
§ 4. When a common taxation is established, the King sets out how the tax quotity for each taxpayer's taxable income is established.
§ 5. § 1er is not applicable to taxes and pre-payments for the period prior to marriage and the conclusion of the legal cohabitation declaration. ".
Art. 58. In section 466 of the same Code, as amended by the Act of 20 December 1995, the words "and the tax credit referred to in sections 277 to 296" are replaced by the words "and tax credits, referred to in sections 134 and 277 to 296".
Art. 59. In Article 517 of the same Code, the words "of Article 133, 2 and 3" are replaced by the words "of Articles 131, paragraph 2, and 132, paragraph 2,".
Art. 60. In Article 518, paragraph 3, of the same Code, amended by the Royal Decree of 20 July 2000, the words "Article 16, § 1er," are replaced by the words "Article 16, § 4."
Art. 61. In the same Code, an article 525 is inserted, as follows:
"Art. 525. Article 1454, 2°, as it existed before being amended by section 31 of the Act of 10 August 2001, remains applicable to contracts entered into before 1er January 2002. ".
Art. 62. When an employer or a group of employers has organized the collective transportation of staff between the home and the place of work, the related costs are deductible to a maximum of 100 per cent.
The deduction is applicable only:
(a) where the actual and the amount of costs are justified in accordance with section 49 of the Income Tax Code 1992;
(b) to the extent that the costs relate directly to minibuses, buses and coaches, such as these vehicles, are defined by the regulations relating to the registration of motor vehicles, or are related to the paid transport of persons using these vehicles.
Article 66, § 1er, the same Code is not applicable to the costs referred to in paragraph 2 relating to minibuses.
Art. 63. § 1er. When an employer or a group of employers has organized the collective transportation of staff between the home and the place of work, the related costs are deductible up to 120 p.c..
The plus deduction is applicable only:
(a) where the actual and the amount of costs are justified in accordance with section 49 of the Income Tax Code 1992;
(b) to the extent that the costs relate directly to minibuses, buses and coaches, such as these vehicles, are defined by the regulations relating to the registration of motor vehicles, or are related to the paid transport of persons using these vehicles.
If the costs consist of depreciation of the vehicles referred to in paragraph 2, b, the deductible amount per taxable period is obtained by a maximum of 20 p.c. the normal amount of depreciation for that period.
Article 66, § 1er, the same Code is not applicable to the costs referred to in paragraph 2 relating to minibuses.
§ 2. Section 190 of the same Code is also applicable to the quotity of 20 p.c. of fees that has been admitted beyond the amount of fees actually made or borne.
§ 3. Amortizations which, in accordance with § 1er, paragraph 3, shall be taken into consideration beyond the investment or return value of the vehicles referred to in § 1er, paragraph 2, b, shall not be taken into account for the determination of subsequent surplus-values or less-values related to these vehicles.
Art. 64. By derogation from sections 146 to 153 of the same Code, unemployment benefits including a supplement to seniority are, for the purposes of these articles, assimilated to the other replacement income referred to in section 146, 5°, provided that:
- that these allowances including a supplement of seniority are allocated to unemployed persons who, before 1er January 2004, is 58 years of age or older;
- and those unemployed already got before 1er January 2004 the right to these allowances including a supplement of seniority.
Art. 65. Sections 6, 8, 9, 11, A, 12, A, 14, 17, 19, A, 25, A, 28, 29, 31, 1°, 47, 51, 1°, 53 and 57, A, come into force from the 2002 taxation year.
Section 62 applies for the 2002 taxation year.
Sections 7, A, 22, A, 25, B, 26, A, 30, 31, 2°, 49, A, 50, 51, 2° and 3°, 52, 54, 55, 58, 61 and 63 come into force from the 2003 taxation year.
Sections 7, B, 22, B, 23, A, 33, A, and 49, B, come into force from the 2004 taxation year.
Sections 2 to 5, 10, 11, B, 12, B, 13, 15, 16, 18, 19, B and C, 20, 21, 22, C, 23, B, 24, 25, C, 26, B, 27, 32, 33, B, 34 to 46, 48, 49, C and D, 56, 57, B, 59, 60 and 64 come into force from the 2005 taxation year.
Promulgate this law, order that it be clothed with the seal of the State and published by the Belgian Monitor.
Given in Nice on 10 August 2001.
ALBERT
By the King:
Minister of Finance,
D. REYNDERS
Seal of the state seal:
Minister of Justice,
Mr. VERWILGHEN
____
Note
(1) Parliamentary references:
Documents of the House of Representatives:
50 -1270 - 2001/2001:
nbones 1: Bill. - nbones 2-5: Amendments. - No. 6: Report. - No. 7: Text adopted by the commission. - No. 8: Amendment. - No. 9: Text adopted in plenary and transmitted to the Senate.
Full report. 4 and 5 July 2001.
Documents of the Senate:
2 - 832 - 2001/2001:
No. 1: Project transmitted by the House of Representatives. - No. 2: Amendments. - Number three: Report. - No. 4: Text corrected by the commission. - nbones 5 and 6: Amendments. - No. 7: Decision not to amend.
Annales of the Senate: July 19, 2001.