Rule of Tax Treatment Depends on The Location

The tax treatment of dividends paid to a Belgian holding company in the state of the source of these dividends depends on the location of the distributing company.

There are two hypotheses.

Company located in Belgium

The withholding tax is not levied on dividends receivable and whose beneficiaries are companies resident in Belgium for as long as the company receiving the dividends has held for a continuous period of at least one year, at the time of allocation dividend participation of at least 25% shareholding in the distributing company.

The exemption from withholding is applicable regardless of the legal form of society and is thus also the dividends received or accrued by companies that are not specifically covered by the Directive mother-daughter.

If these conditions are not met, the withholding tax will be withheld by the distributing company and charged by the company receiving the tax finally due or possibly refunded if the recipient does not display a holding company tax base.

Company located in a member state of the European Union

The EU Directive "parent-subsidiary" of July 23, 1990 had, under Article 5, the profits distributed by a subsidiary to its parent company established in another Member State is exempted from withholding tax in both the State of origin of the income in the Member State of the recipient company, provided that it holds a stake of at least 25% shareholding in its subsidiary. To extend the benefits of the latter, the new Council Directive 2003/123/EC of 22 December 2003, provides that the ownership threshold at which a company can be considered as a parent and the other as its subsidiary should be reduced gradually from 25% to 10% by 2009 (20% at the date of entry into force of the text, 15% in 2007 and 10% in 2009).

Taxation Documents

This document presents the principles of taxation of micro-enterprise can choose individual entrepreneurs. From a social point of view, micro-entrepreneurs are independent Social Plan (RSI). Their social contributions can be calculated and paid according to the common law system or as the regime of micro-social.

Micro-entrepreneurs must report their activity to the center of business formalities (CFE):

- With the Chamber of Commerce and Industry (CCI) they are traders,

- With the Chamber of Trades and Crafts (MAC) if they are craftsmen,

- With Urssaf they are professionals, managers

- The registry of the Commercial Court if they are commercial agents

Rules of Liability to Pay Tax

However, and this is a specific aspect of the tax system, local officials may also opt for another procedure of taxation, choosing to tax their allowances following the classic rules applicable to salaries and wages, including the taking into account the "actual costs".

It is mainly used this solution when the elected do not receive (or little) other than income from their allowances when they are high, when elected has significant burdens of families (because of the application of the family quotient system) or when the costs of carrying out the mandate far exceeds the "package" practiced in the case of the withholding.

In contrast, the tax liability under the rules applicable to salaries and wages are not of interest to local officials receiving reduced benefits. It appears to reverse more sense to choose the system of withholding tax (or withholding), which scales applicable state and package system is very favorable - allowing certain amounts of the same benefit of non-taxation. For this, it should inform the tax authorities of the choice before the 1 January.

What is the Tax Benefits of Local Elected ?

 

Payments to local politicians have long been considered, a tax perspective, as for the expense and thus, consequently, may not be as subject to tax on income of individuals . However, the Act No. 92-108 of 3 February 1992 has changed this situation, and to replace a tax system tax leaving some freedom of choice in local hands. Indeed, Article 204-0 bis of the General Tax Code establishes the principle of withholding allowances applicable to local officials, with legal effect in respect of tax on personal income.

The determination of the taxable amount is then made on the basis of total gross compensation function, which are deducted from social security contributions mandatory - including IRCANTEC - the share of CSG deductible and also a lump sum representing the cost of jobs. This amount is equal to 100% of the amount of compensation paid to the mayors of municipalities with fewer than 500 inhabitants (632.85 euro in 2007 if elected on just one term compensation).

The retention used in this amount is then determined by applying the general rate of income tax (with a single tax share, and without profit for the reduction of 20% set aside for salaries and wages). Most members choose to submit to this withholding, which allows them to exclude their compensation from their other taxable income, and therefore, given the important deduction that can be performed on the amount of compensation (including " package 'fee representative jobs), to benefit from moderate taxation.

The U.S. Budget & Tax System

THE HAGUE - The leadership of the Christian Union wants the next government period, the load increases mainly precipitate at the highest incomes.

This is contained in a draft election platform on the website of the party which has been published and Christian Union members this week to respond. Then comes a final draft and the members at an election conference final decision.

One of the measures to the extent income tax is additional to the establishment of a temporary crisis and recovery fee. This is an additional burden on top of the highest tax rate of 52 percent. How high the fee should be temporary, about the Party at this stage no decision.

In May last year, Senator Schuurman Christian Union has a similar crisis fee. That should apply to anyone who earns more than the Prime Minister (about 125,000 euro). The second parliament for the Christian Union rejected the proposal last year off.

Furthermore, the party that the mortgage interest is deducted at a rate equal for everyone. At this time, the amount to deduct the interest income at the highest rate of 52 percent disk. In addition, the CU repaying the mortgage market by the annual deductible amount thirtieth part reduction.

The Christian Union wants the structural deficit of 36 billion in three periods cabinet removal. That means a saving of 12 billion over the next four years. This is precisely the party between CDA and PvdA in.

The Christian Union wants the child various schemes into one kind budget and calls for a tax system for working families.