ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Debit in Belgian Current a/c
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Credit in Belgian Current a/c
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Debit in Belgian Capital a/c
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Credit in Belgian Capital a/c
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Detailed explanation-1: -In Belgium, a tax exemption applies to the first €800.00 (income year 2023) of dividend income earned per taxpayer. This exemption allows taxpayers to reclaim the 30% WHT previously withheld on no more than €800.00 of Belgian dividend income. For foreign dividends, in most cases, no Belgian WHT was deducted at source.
Detailed explanation-2: -A uniform WHT rate of 30% is applicable on dividends, interest, and royalties. There are some exceptions. Some WHT reductions/exemptions are foreseen under Belgian domestic tax law.
Detailed explanation-3: -Most foreign dividends received by individuals from foreign companies (shareholding of less than 10% in the foreign company) are taxable at a maximum effective rate of 20%. No deductions are allowed for expenditure to produce foreign dividends.
Detailed explanation-4: -Tax on dividends (“roerende voorheffing” or “précompte mobilier”) There’s a 30% tax on dividends that you perceive through shares that you hold. This tax is applicable to individual stocks but also to distributing funds. The dividend tax is the main reason why accumulating funds are preferred over distributing funds.