Taxing times 2016: How to file your Belgian income tax return online (part 3)

Why would I file online?

If you file your tax return online via tax-on-web, you can file until July 13, and your accountant or tax adviser can file until October 27.

Filing your tax return online is a bit more user-friendly; you fill in the information in a traditional tax return, and the software does the calculations.

However, once you have been converted to filing online, the tax administration will not send you a tax return anymore.

Is it difficult?

Tax-on-web is not something you do lightly or in a hurry. You need an ID-reader, your electronic ID-card (the one with a chip), and the PIN code you received with your id card. If you lost your PIN-code, contact the commune. Setting up the software for the e-card reader is the trickiest part.

You can even access Tax-on-web on your tablet. The Belgian company Freedelity has launched the Freedelity Secure Browser Free-app for Ipad and Android tablet. With their ID card reader and your ID card, you can access Tax-on-web just like you would on your computer.

I do not have an identity card with a chip. What can I do?

You will need a token; you can register with FEDICT (servicedesk@fedict.belgium.be) to identify yourself for tax-on-web. You will need some identification: your national number (on the back of your ID card or your tax return) and the number of your ID card. You will be asked to choose a username and password and by way of confirmation you will receive an email with a link. You then you have 30 days to confirm by clicking on that link. About ten days later your ‘token’ arrives by mail. That is a card with 24 personalised codes. When you log on to Tax-on-web, or when you sign in, you will be asked to identify yourself with one of the numbered codes.

How does it work?

When you log in, you open your own Taxbox, and you will find something that looks like the guide (the “document préparatoire”) that comes with your paper tax return. On each page you can click and get online explanation, add a comment or attach a PDF-file. The help files do not offer much more information than the booklet does.

You will see that when the tax authorities already have information, the boxes will already be filled out. That is the case for the identity of your dependent children, the cadastral income of your house, your salary and the wage withholding tax or your titres services…

What are the advantages?

Filing your tax return online is a bit more user-friendly than the paper from. You fill in the information in a traditional tax return, and the software does the calculations and checks that you have not omitted any required information; e.g. if you take a deduction for your mortgage, the program will remind you to state the name of the bank. When you make a mistake, the form will point it out. Not all mistakes are errors, however, and it can be frustrating when you can’t move on. 

What is appealing about tax-on-web is that you can do it from any computer at any time and you can stop, save and continue when you want. You can take your time filling out your tax return at your own pace. Just do not forget to save the interim versions. This may be useful if you need to double check something.

Another advantage of tax-on-web is that you don’t need to file all the justification documents that you normally file with your return. You can scan them and send them as a PDF file, but you can just as well keep them at home until the taxman asks for them.

Do not forget to sign

Before you sign and finalise your tax return, you can calculate how much tax you will have to pay. It is a rough estimate because it does not take into account complicated issues like cross border workers, overseas income, etc. That calculation is not the tax assessment. That will come later.

Finally, you need to sign the electronic tax return. You do that with your PIN code (if you have an electronic ID card) or with your access code. Spouses and partners who file a joint tax return must log on and sign separately with their PIN code or access code. When both have signed the tax return, you receive a confirmation of the date and time of filing. I would suggest you print it or save a copy. You can always check the summary of your tax return in your Taxbox. It is not a bad idea to save a copy as well. 

If you file online, you do not need to send a copy of the confirmation or the PDF-summary. Once the tax return is filed, you can still correct your tax return online until July 13. If you need to change anything after that date, you will have to contact your local tax office or send them a letter saying : in code 1030-10, please replace 10 by 1.000.

Is the tax bill electronic as well?

When you file your tax return online, you still receive your tax bill, the assessment, on paper. However, you can opt to receive it via Zoomit. All you need to do is click that you want to receive your bill via Zoomit or in MyMinFin. Zoomit is a free service offered by most banks via their internet banking to manage (and pay) your invoices more easily. You can also find a copy in MyMinFin, together with the tax return you filed online in the past (in pdf format).

Any disadvantages?

Tax-on-web clearly has a lot of advantages, but maybe you are wondering whether you are not making it too easy for the taxman. By filing online, you are doing all the work for him, all he needs to do is press the button to send you the bill. Are they not rushing out the demands to pay tax, while they are hanging on to those where they have to reimburse tax? There is no evidence to that. True, it is easier for the taxman, but he still has to check the figures. And so should you when you get the bill.

Marc Quaghebeur is a lawyer and partner at De Broeck, Van Laere & Partners. More information at www.taxation.be