How to report extra earnings without additional taxation?

The 'work on the side-law' makes it possible to earn tax free extra money. This is possible for employees working at least 4/5, for self-employed and retired individuals. As long as the income stays within predefined limits, no contributions nor taxes are due. As from 15 July 2018 the assignments should be reported through an online service. A brief outline of how it works.

For voluntary work and services from citizen to citizen

As from 15 July 2018 small jobs for consideration should be reported. In case an association relies upon someone to do some tasks in his spare time, the association should report this. It concerns paid services for social and cultural not for profit associations, de facto associations or public administrations. These services cannot be professional and should be on the list of allowed activities.

For occasional small jobs between citizens - from one private individual to another - it is the person performing the job who has to report it. These services cannot be professional or supplied through the sharing economy. They should be on the list of allowed activities. It is the person performing the services, who should report them. Example: small repair services, taking children out of school or watching them until the parents come home.

Income from shared economy platforms is reported in the tax return, and not through the online service www.bijklussen.be. The shared economy platform will communicate the income to the tax authorities.

Content of the declaration

An implementation decree of 15 October 2018 (Belgian Official Journal of 7 November 2018) states, as from 15 July 2018, what such declaration exactly contains. The organisations and occasional service providers report the listed data to the social security authorities. This should be done before the start of the services.

For the period from 15 July to 7 November (the publication date of the implementation decree) the organisations and service providers can file the declaration retroactively.

1/ For voluntary work. Information about the organisation itself, such as the number in the Crossroads Bank for Enterprises (CBE). But also about the volunteer and the provided services. It concerns the start and end date and the nature of the services, and the amount received for each service.
The declaration can be amended until the end of the day to which it relates (or the end date of the services). In case the services stop earlier than foreseen, it can be amended until the end of the day on which the services stopped.

2/ For occasional services between citizens. Information (identification) about themselves and the person for which the services are provided. For each date of services, the nature of the services and the amount received for each of the services provided. The declaration can be changed until the end of the day of the period to which it relates. Cancellation of the declaration is possible until the end of the period to which it relates in case the services which were foreseen were not performed.

Electronic declaration

Due to the electronic application the occasional service providers and volunteers can consult the data (and their changes). E.g. the amount of the different fees.

It also allows to print a certificate so that organisations can consult the annual amount a certain volunteer has already received during the current year for voluntary work. Also service providers can in the same way consult the monthly and yearly amount they have received during the current year.

Thresholds

Who wants to do some extra jobs in his spare time, can earn up to 6.130 euro per year (indexed amount for 2018) without paying taxes or social contributions. Watch out: this amount includes transport and other costs.

It should concern voluntary work, services from citizen to citizen or activities in the shared economy. Income from voluntary work and citizen to citizen services together cannot exceed 510,83 euro per month (indexed amount 2018).

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