Starting January 1st, 2018, the Belgian government introduced an annual Tax on Securities Accounts (Taxe sur les comptes titres - TCT, a subscription tax) of 0.15% for Belgian residents. The tax will be applicable in 2019 for those whose average worth of security accounts amounts to more than EUR 500,000.
Belgian residents are now obliged to report and pay annual taxes for their capital and asset investments on Belgian and non-Belgian deposits. This obligation of reporting and paying the taxes on securities accounts has either to be done by the investor if the securities are held in a non-Belgian deposit, or by the bank if it opts to fulfill the requirements for declaration and payment for their clients. The first reporting will cover the period January 1 – September 30, 2018. From October 1, 2018, the report will cover the period of October 1 – September 30, 2019.
The average value of the investments per annum will generally be calculated based on the portfolio situation at the end of each quarter, i.e. December 31, March 31, June 30 and September 30. For the first reporting in 2018, it will only cover three of the above quarters.
If the bank opted to act as paying agent for their clients, the subscription tax has to be lodged with financial authorities by the twentieth day of the third month following the end of the reference period. Therefore, the first declaration has to be lodged by December 20, 2018. In case the client is lodging the declaration and paying the tax himself, these obligations have to be fulfilled together with the lodging of the annual tax return.
The EasyTax module BE-TCT is built to support banks in providing an annual report of the average value of the relevant deposits as well as the calculation for the subscription tax payment of their customers located in Belgium.
Features of BE-TCT
The new module bases the calculation on the quarterly portfolios and determines the annual average value of the tax relevant instruments, the tax thereon and which instruments are subject to wealth tax.
The securities are classified into taxable and non-taxable instruments. The report for the customer consists of a summary sheet showing the portfolio value of each quarter, the average value of the portfolio over the total of the reporting period and the tax amount thereon. Furthermore, it shows the detailed portfolios of each quarter as well as the corresponding taxable base.