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taxation.be

Tuesday
Oct 17th
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Donations

A registration tax is due on any lifetime gifts passed before a notary. 

Strictly legally speaking, a donation is not valid if it is not laid down in a notarial deed.  A hand-to-hand gift of moveable assets is nevertheless accepted as valid.  Since only a notarial deed must be registered and since this registration is the taxable event for the registration tax, the hand-to-hand gift is a legal means of avoiding the gift tax.    However, any lifetime gifts which took place less than three years before the deceased's death and on which no registration tax has been paid, are added to the estate of the deceased and are liable to inheritance tax.

The value of the assets is calculated in the same way as for inheritance tax purposes

Traditionally, the rate of the gift tax was calculated at the same rates as the inheritance tax.  In recent years, the regional governments have introduced favourable registration tax rates for donations of moveable assets.

[link] Which rates apply depends on the region where the deceased has been a tax resident for the major part of the last five years before his death.

The gift tax is due at the time of the registration of the notarial deed recording the donation with the Ministry of Finance. 

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