Hi,
I am from India, working in Belgium on an assignment for the past 2 years. I am paid a Net salary in Belgium (No benefits - follows Tax equalization policy) + my salary and PF paid in India.
My wife was a dependent spouse but she started working since Oct 2018 and I communicated this to my employer. My employer has come back to me with a revised NET Belgian salary as I am not entitled to dependent spouse tax deduction and they said that my Belgian NET will reduced approx by 230 EUR. In addition, they also say that though my wife is not a dependent from October, I will be considered a non-dependent for the entire tax year, so I have to pay back the dependent spouse tax benefit that was paid from January to September this year.
Could someone confirm whether this is the Belgian law for dependent spouse deductions? Isn't there a prorated calculation for such cases? I have to pay back to my employer more than 50% of what my wife will earn in 3 months (Oct - Dec) this year (which according to me makes no sense).
Thanks..
Dependent spouse tax deduction
Ideally it should be pro-rata. This according to the link below came into effect from 2018 onwards.
It focuses more on a person who worked only a part of full year. Maybe it should be applicable for your dependent income as well as exemption of your dependent from your income.
http://ichibanconsult.be/blog/short-tax … eductions/
Sounds correct to me, same happens when a spouse abandons or divorces you, you have to remain together for the entire year, only the following tax year can you gain / lose a dependent tax allowance.
Thanks for the link, i didn't find the link during my search. It seems to be a new change but not yet clear how it will impact dependent spouse allowance. I am yet to hear back from my employer, I will post the outcome once I get a clear response.
Sorry, I don't understand your response. Do you say that my employer is correct or applying prorated concept is correct?
Your employer is correct.
So that means for 2018 her wife will still be treated as his dependent even if she became independent in October. Only from next year i.e. 2019 he should lose the dependent exemption benefit. Right?
Ask spf finances, pretty certain you cannot pro rata tax allowances. In which case employer is right, as wife has started work, no dependents allowance for 2018. If link above is correct, see if new rules apply however, says it s limited.
Hello Folks,
My spouse recently got a job in wallonia post an internship for few months.
She is yet to get a permanent contract.
I communicated this to my employer and kaboom, they deducted around 500 euros net from my paycheck.
Can I get any links which can explain why do I suddenly get a surge in my taxation whereas my spouse will also be paying the tax once she gets the permanent contract.
This makes no sense to me and the HR from my company is unable to explain me the very high tax deductions.
Appreciate inputs on this matter.
Dont worry, that money wont go anywhere. If you are entitled to get more net, you willl get it back as tax refunds when you file your return. In Belgium, a family does one tax return. The department will calculate based on your wife's earnings and yours and if your employer paid taxes more than you had to pay, you will get it back as refund.
Hi AV1985, what happened at the end? I am in the same situation in 2021. I am wondering whether I need to pay more taxes in 2021 as my wife started to work in the end of October. I will appreciate any feedback.
Hello, I also came last year as a dependent spouse for my husband. I recently got a part time job and it doesn't pay much, around 700-800 euros a month. Even on this low salary and part time work will i not be a dependent and my husband will not get dependent spouse allowamce? Please explain
As soon as you start working (Paid internship or Part time) irrespective of the income you are not considered a dependent anymore.
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