Tax returns: what's new in 2024?
From today (Wednesday 24 April), you can file your tax return. Like every year the Federal Finance Department has added a number of new features to the document that can be filled in online or on paper. The following article provides a summery of what’s new.
- Stricter rules on copyright: the favourable tax regime for income from copywrite now only applies to literary or artistic works. Income from the creation of other intellectual property such as computer programmes will no longer fall under the favourable fiscal regime. However, specific cases will still fall under a transitional arrangement.
- The purchasing power bonus: companies that made "high" or "exceptionally high" profits were allowed to pay a purchasing power premium to their employees. This is exempt from tax up to a maximum of sum of 750 euro.
- Deducting rent from tax as a professional expense: Those wishing to deduct their rent as a professional expense must submit a mandatory annex containing additional information such as the address of the property, the name of the landlord, and the amount paid in rent. If the rental contract states that the property is only rented out for private use if the rent paid will be no longer be tax deductible.
- Voluntary “relaunch” overtime: Since 1 July 2023 and until 30 June 2025, employees have been able to do “voluntary overtime” under a highly favourable fiscal regime. Under the system that first saw the light of day during the coronavirus crisis no social security contribution, personal income tax or withholding tax is levied on the overtime worked.
- Cycle allowance: employers that gave their employees an allowance for cycling to work (in 2023 the allowance was 27 eurocent per km) will receive a (temporary) tax break in the form of a tax credit.
- Separate declarations for divorced partners: the income of those who divorced in the past year remains jointly taxed, but ex-partners can now choose to file a separate tax declaration. The Federal Finance Department will do the work necessary to combine the information on the two declarations into a single declaration once both declarations have been filed.
Who will receive a simplified declaration proposal?
Some 4 million taxpayers will receive a simplified declaration proposal (SDP). This is a declaration on which a whole series of details have already been filled in.
The SDP is sent to people in receipt of a salary, pension or some form of social security or unemployment benefit and have no other source of income for example from real estate or from self-employment.
This year, the DSP has been extended to include childcare expenses. From now on these will also be filled in in advance (provided that the childcare organisation has forwarded them on time to the Finance Department). Income from the sharing economy (such as income from sales via second-hand sites) or from work done for cultural, sport and other association will appear on the SDP.
Important tip: even though the SDP is very handy, experience shows that you need to check that document meticulously before filing it as your tax return.
Deadlines
Those that wish to can file their tax return via the MyMinfin website from today. The deadline for online declarations is 15 July. You can log into the MyMinfin website using your electronic identity or residency card or by using the Itsme app.
- Those that wish to submit a paper tax return will receive it between now and the end of May. Paper tax returns must arrive at the tax office by 30 June.