Soon, all employees in Belgium will have to file a tax return declaring their income for the previous year.
If in 2020 you worked on the basis of a Belgian contract, then you will soon receive a letter with the tax return.
You can make this tax return in several ways:
- on paper, by June 30, 2021 at the latest;
- electronically through tax-on-web, until July 15, 2021 at the latest;
- electronically through an accountant, by 21 October 2021 at the latest (in some cases by July 15, 2021).
If you need help filling in the tax return, you can make a telephone appointment with FOD Financiën until June 29.
More information can be found at https://finance.belgium.be/en/private-individuals/tax-return
What about the withholding tax, its value and its calculation?
During employment, an advance (withholding tax) will be deducted from your salary. As a result, an amount is already set aside for the time when the tax is calculated. The amount of tax you owe in the end depends a lot on how much you earned and your personal situation. Tax authorities calculate the amount of tax due and deducts the advance already paid. If the advance (withholding tax) was not enough, you will owe an additional amount that you will have to pay.
Would you rather not have surprises when it comes to tax recalculation?
Based on our experience, we recommend that you opt for a withholding tax of 23% or more. This way, you put enough money aside and you will have to pay a smaller amount when recalculating the tax. Does the amount of withholding tax exceed the amount of tax due? Good news: in this case, the overpayment will be refunded to your account.