-
Belgique
Belgium – How to recover unpaid receivables
8 mai 2024
- Litiges
Dealing with unpaid invoices can be challenging for any business. In Belgium, where judicial processes can seem daunting, understanding how to manage debt collection effectively is crucial. This article offers practical guidance derived from a comprehensive legal guide to help your company navigate Belgium’s judicial debt recovery landscape.
Understanding Your Options
Assess the Situation: Before taking legal action, evaluating the amount owed and the debtor’s financial status is essential. This assessment will guide you in choosing the appropriate legal avenue, as Belgium offers different courts and procedures based on the dispute’s value. For instance, for claims up to € 5,000, the local court or ‘justice de paix’, which is a court of first instance for minor civil cases, is typically used due to its cost-effectiveness and efficiency.
Send a Notice of Default: Under Belgian law, a notice of default is mandatory before initiating legal proceedings. This step adheres to legal requirements and gives the debtor one last chance to settle their dues without further legal complications.
Efficient Legal Procedures
Use Simplified Procedures for Small Amounts: A simplified legal procedure can be utilized for undisputed money debts up to €1,860, which expedites the payment request process significantly. This approach can be particularly advantageous for recovering smaller debts quickly.
Consider Direct Bailiff Intervention: For undisputed amounts, irrespective of their size, between companies, creditors can authorize a bailiff to recover the debt directly without a court judgment. This procedure reduces legal fees and speeds up the debt collection process.
Leveraging Legal and Financial Advice
Consult with a Belgian Attorney: Navigating the Belgian legal system can be complex. Consulting with a local attorney can provide insights into the most effective procedures tailored to your case. This is especially true for international debt collection, where regulations and guidelines vary significantly.
Prepare Necessary Documentation: Ensure you have all necessary documents, such as contracts, invoices, and payment records, organized. These documents are essential to support your claim, whether you are dealing with local or international debt recovery.
After Initiating Debt Recovery
Use Interim Measures: If immediate action is needed, interim measures like seizing bank accounts or assets may be applicable. These measures, which are temporary and can be requested even before legal proceedings, can ensure that the debtor’s assets are secured while the legal process unfolds.
Conclusion
Recovering debts through judicial means in Belgium requires understanding the legal landscape and an appropriate strategy based on the debt’s nature and amount. While this article provides practical guidance, it is important to note that each case is unique, and professional legal advice is recommended for complex debt recovery cases. Businesses can enhance their chances of successful debt recovery while maintaining financial stability by utilizing simplified procedures for smaller or undisputed debts and consulting with legal experts. This proactive approach ensures that your business can continue to thrive even in the face of financial adversity.
Belgian residents working abroad, e.g. in Luxembourg, may have a company car registered in their country of employment. The Belgian regional tax administrations exercise checks to verify whether the user of the company car complies with regional vehicle tax rules allowing an exemption from registration of the car in Belgium and from Belgian vehicle taxes. Especially in the Walloon Region this has given rise to a lot of litigation in recent years, especially regarding Luxembourg workers residing in Belgium.
Belgian vehicle registration rules stipulate that the user of the car must have on board of the car a copy of his employment contract as well as a document drawn up by the foreign employer showing that the latter had put the vehicle at the employee’s disposal. If the driver cannot produce these documents, he is supposed by the Walloon tax administration to have violated the legal obligation to register the car in Belgium and to pay Belgian vehicle taxes.
The consequences are severe. In addition to the vehicle taxes, the driver must pay a hefty fine. Failing to pay these large amounts (often more than EUR 3,000.-) on site at the time of the road check, the authorities withhold the on-board documents of the car, which results in the immobilization of the car.
The Walloon tax administration, initially, did not pay back the vehicle taxes even if it was proven afterwards that the conditions of the exemptions of registration in Belgium and Belgian vehicle taxes were met. At first, the tax administration claimed that the vehicle taxes remained due if the employee showed the required documents only afterwards to the competent authorities. The position of the Walloon tax administration was that the employee must be able to produce the required documents on the spot during the check to be exempted from registration and vehicle taxes in Belgium.
In a recent reasoned order, the European Court of Justice (‘ECJ’) confirmed that this harsh position by the Walloon tax administration was in violation of the freedom of movement for workers. A reasoned order is issued by the ECJ a.o. where a question referred to the ECJ for a preliminary ruling is identical to a question on which the ECJ has previously ruled or where the answer to the question referred for a preliminary ruling admits of no reasonable doubt.
In other words, the ECJ confirms that the requirement to have the abovementioned documents permanently on board of the vehicle to be exempted from Belgian registration and Belgian vehicle taxes is manifestly disproportionate and thus a violation of the freedom of movement for workers.
From a practical perspective, this ruling confirms that an employee resident in Belgium but working in another member state does not have to pay the Belgian vehicle taxes (or is entitled to be paid back) if he demonstrates after the check that he met the conditions to be exempted from registration and vehicle taxes in Belgium.
Climate change has become part of our everyday lives. This includes tax lawyers on the lookout of tax incentives for their clients. Below you will find an outline of green tax incentives for industrial or commercial buildings in Belgium. Indeed, such tax incentives may help you achieve your companies’ sustainability goals. Other green tax incentives exist in Belgium but the focus here is on industrial and commercial buildings.
Reduction of Machinery and equipment tax (MET)
Fixed assets, such as machinery & equipment in industrial or commercial companies are considered immovables (buildings), subject to property tax (the MET). In Belgium this is a regional tax. The Brussels Capital Region and the Walloon Region abolished the MET.
The Flemish Region adopted a different policy by reducing (possibly to nothing) the MET and by incentivizing companies to invest in new machinery and equipment or to replace older machinery and equipment.
How is this achieved?
- No indexation of the taxable base
- A (full) reduction of the portion of the Flemish treasury in the MET (the local authority where the company is situated receives the proceeds of the MET)
- Exemption for new investments or the replacement of machinery & equipment: the exemption depends on an energy policy agreement between the company and the Flemish government (on the basis of the Flemish Energy Code). The purpose is to reduce CO2-emissions and to enhance energy efficiency.
However, companies with a historical presence in the Flemish region (brownfield companies) felt that they had a competitive disadvantage compared to greenfield companies: their older machinery was taxed as before. It must be noted that some of these companies employ a lot of people.
The Flemish government therefore adopted legislation that for investments in machinery and equipment between 01/2014 and 12/2019 a reduction of the taxable base of older machinery and equipment is granted on the basis of the taxable base of the new (exempted) investments. It is not yet confirmed that this tax exemption will be prolonged or made permanent beyond 2019, however it is expected that the above tax policy in the Flemish Region will be continued, thus reducing (possibly to nothing) the MET.
120% cost deduction for investments in bicycle infrastructure for employees
Personal and corporate income tax is mainly a national matter in Belgium. A 120% cost deduction has been put in place for investments in bicycle infrastructure for employees, such as a bicycle parking and other infrastructure for cyclists (shower, …).
Exemption of taxable profits for investments in new fixed assets
Another (national) income tax incentive is the exemption of taxable profits (‘investeringsaftrek’ – ‘déduction pour investissement’) of 13,5% of the investments in new fixed assets in energy efficient technology.
A tax credit for investments in sustainable fixed assets
In corporate income tax (as I said before a national matter) there is a tax credit for research and development (’belastingkrediet’ – ‘crédit d’impôt’) calculated on the basis of the corporate income tax rate (currently 29,58%) for investments in sustainable fixed assets.
Please note that Belgian corporate income tax for SME’s is 20% on the first 100.000,00 EURO turnover (subject to conditions). For all companies the corporate income tax rate will decrease to 25% as from 2020.
Hopes are that both at the national level and at the respective regional levels new green tax incentives will be adopted in order to encourage sustainable investments in Belgium.
Belgium’s succession law will be modernized, as Belgium will prune its forced heirship rules and adopt more flexible rules allowing donors and testators to give away or to bequeath more. The forced heirship principle is withheld. A transition period is put in place to allow everyone to decide on the options to be taken.
Descendants and spouses maintain the position of most important protected heirs, but without descendants, spouse or legal partner, ascendants are also protected heirs. The latter changes: ascendants (such as parents) will no longer be protected heirs.
This will offer new inheritance planning options, including for expats without children residing in Belgium. Parents will maintain a succession claim if the child passes away without descendants where there is no will that stipulates otherwise. If the child has a spouse the inheritance claim of the parents is limited to the bare ownership of other than the common assets (as is today).
Legal partners are not protected by forced heirship rules. They have a limited intestate claim on the inheritance (i.e., they are entitled to the usufruct of the family home).
The usufruct is the right to use an asset and the right to collect the revenue of an asset. The bare ownership is the ownership without the usufruct.
The unprotected portion increases to half of the estate regardless the number of children. The spouse remains entitled to at least the usufruct of half of the estate. The minimum for spouses is the usufruct of the family home, even if the value of it would be more than half of the estate (as is today).
The new rules will therefore allow also more flexibility to parents with two or more children.
The forced heirship rules do not prevent giving away more than the unprotected portion of one’s assets, nor do they prevent someone from bequeathing more than the unprotected portion. Protected heirs have the right to claim back what was given away beyond the forced heirship rules or may object to the execution of a will that would have failed to take care of their rights.
Belgium is bound by the EU Succession Regulation. Belgian forced heirship rules may be put aside if a different applicable succession law on the basis of the regulation would be applicable following a valid and effective choice of law.
It is expected that the second phase of the reform, regarding matrimonial property regimes, will be dealt with by the Belgian parliament as soon as the new succession rules will have been put in place.
Espagne 
ÉTATS-UNIS 
Ukraine 
France | Arbitration clauses in international contracts with consumers are not enforceable
- Arbitrage
- Contrats
-
France
Angleterre 
Europe 
Écrire à Ferenc
Vehicle taxes for foreign workers residing in Belgium
2 janvier 2020
-
Belgique
- Entreprise
- Impôts
Dealing with unpaid invoices can be challenging for any business. In Belgium, where judicial processes can seem daunting, understanding how to manage debt collection effectively is crucial. This article offers practical guidance derived from a comprehensive legal guide to help your company navigate Belgium’s judicial debt recovery landscape.
Understanding Your Options
Assess the Situation: Before taking legal action, evaluating the amount owed and the debtor’s financial status is essential. This assessment will guide you in choosing the appropriate legal avenue, as Belgium offers different courts and procedures based on the dispute’s value. For instance, for claims up to € 5,000, the local court or ‘justice de paix’, which is a court of first instance for minor civil cases, is typically used due to its cost-effectiveness and efficiency.
Send a Notice of Default: Under Belgian law, a notice of default is mandatory before initiating legal proceedings. This step adheres to legal requirements and gives the debtor one last chance to settle their dues without further legal complications.
Efficient Legal Procedures
Use Simplified Procedures for Small Amounts: A simplified legal procedure can be utilized for undisputed money debts up to €1,860, which expedites the payment request process significantly. This approach can be particularly advantageous for recovering smaller debts quickly.
Consider Direct Bailiff Intervention: For undisputed amounts, irrespective of their size, between companies, creditors can authorize a bailiff to recover the debt directly without a court judgment. This procedure reduces legal fees and speeds up the debt collection process.
Leveraging Legal and Financial Advice
Consult with a Belgian Attorney: Navigating the Belgian legal system can be complex. Consulting with a local attorney can provide insights into the most effective procedures tailored to your case. This is especially true for international debt collection, where regulations and guidelines vary significantly.
Prepare Necessary Documentation: Ensure you have all necessary documents, such as contracts, invoices, and payment records, organized. These documents are essential to support your claim, whether you are dealing with local or international debt recovery.
After Initiating Debt Recovery
Use Interim Measures: If immediate action is needed, interim measures like seizing bank accounts or assets may be applicable. These measures, which are temporary and can be requested even before legal proceedings, can ensure that the debtor’s assets are secured while the legal process unfolds.
Conclusion
Recovering debts through judicial means in Belgium requires understanding the legal landscape and an appropriate strategy based on the debt’s nature and amount. While this article provides practical guidance, it is important to note that each case is unique, and professional legal advice is recommended for complex debt recovery cases. Businesses can enhance their chances of successful debt recovery while maintaining financial stability by utilizing simplified procedures for smaller or undisputed debts and consulting with legal experts. This proactive approach ensures that your business can continue to thrive even in the face of financial adversity.
Belgian residents working abroad, e.g. in Luxembourg, may have a company car registered in their country of employment. The Belgian regional tax administrations exercise checks to verify whether the user of the company car complies with regional vehicle tax rules allowing an exemption from registration of the car in Belgium and from Belgian vehicle taxes. Especially in the Walloon Region this has given rise to a lot of litigation in recent years, especially regarding Luxembourg workers residing in Belgium.
Belgian vehicle registration rules stipulate that the user of the car must have on board of the car a copy of his employment contract as well as a document drawn up by the foreign employer showing that the latter had put the vehicle at the employee’s disposal. If the driver cannot produce these documents, he is supposed by the Walloon tax administration to have violated the legal obligation to register the car in Belgium and to pay Belgian vehicle taxes.
The consequences are severe. In addition to the vehicle taxes, the driver must pay a hefty fine. Failing to pay these large amounts (often more than EUR 3,000.-) on site at the time of the road check, the authorities withhold the on-board documents of the car, which results in the immobilization of the car.
The Walloon tax administration, initially, did not pay back the vehicle taxes even if it was proven afterwards that the conditions of the exemptions of registration in Belgium and Belgian vehicle taxes were met. At first, the tax administration claimed that the vehicle taxes remained due if the employee showed the required documents only afterwards to the competent authorities. The position of the Walloon tax administration was that the employee must be able to produce the required documents on the spot during the check to be exempted from registration and vehicle taxes in Belgium.
In a recent reasoned order, the European Court of Justice (‘ECJ’) confirmed that this harsh position by the Walloon tax administration was in violation of the freedom of movement for workers. A reasoned order is issued by the ECJ a.o. where a question referred to the ECJ for a preliminary ruling is identical to a question on which the ECJ has previously ruled or where the answer to the question referred for a preliminary ruling admits of no reasonable doubt.
In other words, the ECJ confirms that the requirement to have the abovementioned documents permanently on board of the vehicle to be exempted from Belgian registration and Belgian vehicle taxes is manifestly disproportionate and thus a violation of the freedom of movement for workers.
From a practical perspective, this ruling confirms that an employee resident in Belgium but working in another member state does not have to pay the Belgian vehicle taxes (or is entitled to be paid back) if he demonstrates after the check that he met the conditions to be exempted from registration and vehicle taxes in Belgium.
Climate change has become part of our everyday lives. This includes tax lawyers on the lookout of tax incentives for their clients. Below you will find an outline of green tax incentives for industrial or commercial buildings in Belgium. Indeed, such tax incentives may help you achieve your companies’ sustainability goals. Other green tax incentives exist in Belgium but the focus here is on industrial and commercial buildings.
Reduction of Machinery and equipment tax (MET)
Fixed assets, such as machinery & equipment in industrial or commercial companies are considered immovables (buildings), subject to property tax (the MET). In Belgium this is a regional tax. The Brussels Capital Region and the Walloon Region abolished the MET.
The Flemish Region adopted a different policy by reducing (possibly to nothing) the MET and by incentivizing companies to invest in new machinery and equipment or to replace older machinery and equipment.
How is this achieved?
- No indexation of the taxable base
- A (full) reduction of the portion of the Flemish treasury in the MET (the local authority where the company is situated receives the proceeds of the MET)
- Exemption for new investments or the replacement of machinery & equipment: the exemption depends on an energy policy agreement between the company and the Flemish government (on the basis of the Flemish Energy Code). The purpose is to reduce CO2-emissions and to enhance energy efficiency.
However, companies with a historical presence in the Flemish region (brownfield companies) felt that they had a competitive disadvantage compared to greenfield companies: their older machinery was taxed as before. It must be noted that some of these companies employ a lot of people.
The Flemish government therefore adopted legislation that for investments in machinery and equipment between 01/2014 and 12/2019 a reduction of the taxable base of older machinery and equipment is granted on the basis of the taxable base of the new (exempted) investments. It is not yet confirmed that this tax exemption will be prolonged or made permanent beyond 2019, however it is expected that the above tax policy in the Flemish Region will be continued, thus reducing (possibly to nothing) the MET.
120% cost deduction for investments in bicycle infrastructure for employees
Personal and corporate income tax is mainly a national matter in Belgium. A 120% cost deduction has been put in place for investments in bicycle infrastructure for employees, such as a bicycle parking and other infrastructure for cyclists (shower, …).
Exemption of taxable profits for investments in new fixed assets
Another (national) income tax incentive is the exemption of taxable profits (‘investeringsaftrek’ – ‘déduction pour investissement’) of 13,5% of the investments in new fixed assets in energy efficient technology.
A tax credit for investments in sustainable fixed assets
In corporate income tax (as I said before a national matter) there is a tax credit for research and development (’belastingkrediet’ – ‘crédit d’impôt’) calculated on the basis of the corporate income tax rate (currently 29,58%) for investments in sustainable fixed assets.
Please note that Belgian corporate income tax for SME’s is 20% on the first 100.000,00 EURO turnover (subject to conditions). For all companies the corporate income tax rate will decrease to 25% as from 2020.
Hopes are that both at the national level and at the respective regional levels new green tax incentives will be adopted in order to encourage sustainable investments in Belgium.
Belgium’s succession law will be modernized, as Belgium will prune its forced heirship rules and adopt more flexible rules allowing donors and testators to give away or to bequeath more. The forced heirship principle is withheld. A transition period is put in place to allow everyone to decide on the options to be taken.
Descendants and spouses maintain the position of most important protected heirs, but without descendants, spouse or legal partner, ascendants are also protected heirs. The latter changes: ascendants (such as parents) will no longer be protected heirs.
This will offer new inheritance planning options, including for expats without children residing in Belgium. Parents will maintain a succession claim if the child passes away without descendants where there is no will that stipulates otherwise. If the child has a spouse the inheritance claim of the parents is limited to the bare ownership of other than the common assets (as is today).
Legal partners are not protected by forced heirship rules. They have a limited intestate claim on the inheritance (i.e., they are entitled to the usufruct of the family home).
The usufruct is the right to use an asset and the right to collect the revenue of an asset. The bare ownership is the ownership without the usufruct.
The unprotected portion increases to half of the estate regardless the number of children. The spouse remains entitled to at least the usufruct of half of the estate. The minimum for spouses is the usufruct of the family home, even if the value of it would be more than half of the estate (as is today).
The new rules will therefore allow also more flexibility to parents with two or more children.
The forced heirship rules do not prevent giving away more than the unprotected portion of one’s assets, nor do they prevent someone from bequeathing more than the unprotected portion. Protected heirs have the right to claim back what was given away beyond the forced heirship rules or may object to the execution of a will that would have failed to take care of their rights.
Belgium is bound by the EU Succession Regulation. Belgian forced heirship rules may be put aside if a different applicable succession law on the basis of the regulation would be applicable following a valid and effective choice of law.
It is expected that the second phase of the reform, regarding matrimonial property regimes, will be dealt with by the Belgian parliament as soon as the new succession rules will have been put in place.