Taxing times 2016: Understanding the paper income tax form (part 2)

When should I expect my tax return?

The tax return needs to be filed by the end of June and the tax authorities have to send it to you at least five weeks before, so you should expect you can expect your tax return around now.

What is the deadline for filing?

If you file your tax return on paper, you will see that the tax return indicates when the tax return must be filed. That will be normally be Thursday, June 30. That means the tax return must hit the letterbox of the scanning centre in Jambes or in Ledeberg on that day. Do not leave it to the last minute. Putting the tax return in the mail on the 25th may already be too late. If you leave it to the last minute, you can always deliver it by hand to the tax office. You are likely to see other procrastinators doing the same thing.

If you forgot the deadline, you can start filing online. That gives you an additional two weeks until Wednesday, July 13. Again, do not leave it to the last minute like everyone else. Tax-On-Web tends to get overloaded. Based on past experience, the tax office has drawn up a forecast of the busy days, you can find it here. And if you are too late for tax-on-web, you can go and see an accountant who can file online for you until October 27, you just have to give him a digital power of attorney.

I have not received a tax return. What should I do?

If you have not received a tax return by the beginning of June, you should contact your local tax office and ask them to send you a form. If you have difficulties locating your tax office, check the website of your commune or call the commune.

One reason why you may not receive a tax return is that you have filed a tax return online via ax-on-web last year. Once you go for or tax-on-web, there is no way back. The tax office assumes that you want to continue filing online.

It's my first time. What do I need to know?

If you are really new at filing a tax return in Belgium, you should know that you only have to declare the income. You do not have to calculate the tax yourself and you certainly do not need to attach a cheque to pay the tax. As you will have seen on your pay slip, your employer deducts social security and tax and pays your salary net. Usually, you do not have to pay any more tax. If you have to pay tax, you will receive a bill in six to 12 months' time, at the latest on 30 June 2017.

We are retired and we received a "proposal of a simplified tax return". What is it?

Some taxpayers whose situation does not change from one year to another do not have to file a tax return. That is the case for, among others, students, retirees who only have a state pension, unemployed or people who live on an invalidity allowance. The tax authorities send them a letter with the information that they have on file and they make a first calculation of the tax that they will have to pay or that will be reimbursed to them.

What do we do now with this proposal?

If you receive a proposal of a simplified tax return, you do not need to complete a tax return any more. Lucky you! If the information in the simplified tax return is correct, and you agree with the calculations, you do not need to do anything. You will receive the tax bill later in the year. If the calculation shows a reimbursement in your favour, that will hit your bank account two months after you receive the bill.

If you have other income that is not mentioned in the letter, such as rental income, income as a self-employed person, company director, etc, you must tell the tax authorities. You can complete the answer form and return it by 30 June, you can apply for a tax return or you can adapt the information online via tax-on-web. You will then receive a tax assessment in due time, at the latest by 30 June 2017. Some information the tax authorities will probably not have is that you have overseas bank accounts or insurance policies and you have to report that you have these.

How difficult is it to file a tax return?

Do not get daunted by the form; it looks more complicated than it really is (see the next question). For most, filing a tax return should not be difficult. It is just a question of copying the numbers from one piece of paper on to another one.

The first time, things may be quite straightforward because you only have your salary to declare. And often the taxman already has the information you will be reporting, as you will discover if you file online. However, when you are married, have a mortgage or pay your household help with titres-services, if you have made tax deductible donations, have put money aside in a pension saving account, filing a tax return takes more time and concentration.

Filing your tax return can take between three and five hours. Once you are used to it you can get the job done in about one to two hours. Make no mistake: that brown envelope releases the inner procrastinator in you and on the last day you will be chasing these little bits of paper.

So, what’s in that brown envelope?

Let’s open that brown envelope; there is quite a lot of paper in it. First, there is a booklet explaining the tax rules in a nutshell, then there is a document préparatoire and finally there is the tax return. You cannot miss it, it is the pink document. In fact, it looks very much like one of those lotto forms. And just like with the lotto, it is easy it get it wrong. Just seeing it is quite disheartening, with columns to fill. It is all a question of putting the right number or X with the correct code.

Now put that tax return aside and take the document préparatoire. That is a guide to filling out the tax return - in fact, it used to be the tax return and it is now the template used by tax-on-web. You need to work out what income goes with which code and then you copy the codes and the information in the pink sheet. We will go through it in some more detail in a future instalment.

When you copy the codes on the tax return, a few suggestions from the taxman himself: use a black or dark blue pen, write within the blocks, in capitals or in clear digits. Do not put in any unnecessary mentions or even ‘nil’. When you make a mistake, do not strike out, but use correction fluid. If you have to give more information, do not write it by hand, the scanners have difficulties with handwriting. I would suggest that you attach a printed page with the information so that your additional information is on file immediately.

If you want to attach any documents justifying any deductions, you should attach them to the green page. It has your information and it is scanned with the attachments. However, you are not obliged to file these documents; you can keep them at home until the taxman specifically asks to see them. Finally do not forget to date and sign the tax return; both spouses must sign. 

Where can I seek help?

This is a short online guide to filing your tax return. If you need professional help, you can work with an accountant or a tax adviser. Not only do they have experience, they can also buy you time; they can file your tax return online until October 27.

You should know that the tax authorities are also available to help. You can meet them in their office (the address is on your tax return) but they also set up shop on specific days in town halls or in shopping centres. Be sure to take your tax return, your papers, pay slips, certificates for tax deductions (mortgages, life insurance, pension saving, donations, child care, maintenance pay, titres services etc, your tax bill for last year, and the tax bill for the real estate tax (précompte immobilier). The tax man certainly has a lot of experience, but he cannot give you more time; your tax return must still be filed before June 30 (on paper) or July 13 (online). There is no shame in asking - about 1 million Belgians go and see the taxman.

In the next instalment, we will look at filing online.

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