New round for regularisation of undeclared income

A new draft law foresees to request again to the tax authorities for a regularisation of undeclared income. Regularisation allows one to obtain fiscal -, criminal - and social security law immunity.

The new regularisation round deals with a regularisation of income taxes, VAT, other federal taxes and social contributions. Inheritance  and registration duties, which belong exclusively to the legal competences of the Regions, are excluded at this stage until a separate law will foresee regularisation.

Capital arising from violations of the law that fiscally barred, will be regularized at a different rate than undeclared income.

For undeclared income, the normal tax rate will increased with a penalty of 20 per cent in 2016, 22 per cent in 2017, 23 per cent in 2018, 24 per cent in 2019 and 25 per cent from 2020 onwards.

With respect to the aforesaid fiscally barred capital, the capital amount itself will be taxed at 36 per cent in 2016, 37 per cent in 2017, 38 per cent in 2018, 39 per cent in 2019 and 40 per cent as from 2020 onwards.

Regularisation does not apply to income and capital generated through severe offences like money laundering, except for strict fiscal fraud, abuse of corporate assets or trust.

In case an investigation by the authorities is pending, it is also impossible to file a declaration for regularisation.

One can apply for the new regularisation procedure only once, which means that a regularisation should be done for the entirety of capital and undeclared income.

People who made a regularisation in the past, are allowed to participate at the new regularisation round.

The law will enter into force when it is published in the Belgian State Gazette, which is expected in the beginning of August.

Panis will inform you if there are any updates on this topic.