How should Belgian residents declare Australian bank interest in the 2025 Belgian tax return / assessment year 2026?

Belgian tax residents must normally declare Australian bank and term deposit interest in their Belgian personal income tax return as foreign movable income. For income year 2025 / assessment year 2026, this will generally be reported in Frame VII under code 1444-11 or 2444-78, taxable at 30%, but the correct treatment depends on the taxpayer’s exact situation.

The figures below are illustrative and relate to income year 2025 / assessment year 2026.

Belgian residents must declare worldwide income

A Belgian tax resident is generally taxable in Belgium on worldwide income. This includes foreign bank interest, even where the money is held outside Belgium and even where foreign tax has already been withheld abroad.

That does not automatically mean that the same income is taxed twice without relief. The Belgian tax return first identifies the income, and then the relevant Belgian rules or double tax treaty rules determine whether Belgium taxes it, exempts it, or grants relief.

For a Belgian resident with Australian assets, several income types must be separated:

• Australian bank and term deposit interest;

• Belgian savings interest;

• foreign pension income;

• foreign real estate income;

• the separate obligation to report foreign bank accounts.

The most common practical error is to treat all these items as one “foreign income” category. In the Belgian tax return, they do not all belong in the same box.

Australian bank interest is foreign movable income

Australian bank interest paid directly by an Australian bank, without Belgian withholding tax being deducted by a Belgian intermediary, is normally treated as foreign movable income.

For assessment year 2026, the relevant section is generally:

• Frame VII — Income from capital and movable property;

• A.2.c — Other income without Belgian withholding tax, taxable at 30%;

• Code 1444-11 / 2444-78.

In a joint Belgian return, the left-hand column usually uses code 1444-11 and the right-hand column uses code 2444-78. In separate returns, each taxpayer generally reports their own amount under the relevant code for their return.

The €1,020 Belgian savings exemption does not normally apply to Australian accounts

For income year 2025, Belgium provides an exemption of €1,020 for certain regulated savings deposits. This exemption is aimed at regulated savings accounts, generally with Belgian or EEA credit institutions.

Australian bank accounts and Australian term deposits do not normally qualify for this Belgian regulated savings exemption.

This means the Australian interest should generally not be reduced by €1,020 per person before being entered in the Belgian return.

For example, if a Belgian resident receives about €3,180 net Australian interest after Australian withholding tax, the amount to consider is not only the excess above €1,020. The Australian interest must be analysed as foreign movable income, not as Belgian regulated savings interest.

Gross interest, Australian tax and the amount to enter

A typical situation may look like this for each spouse or partner:

• gross Australian interest: around €3,500;

• Australian withholding tax: around €330;

• net amount received: around €3,180.

Belgian administrative guidance on foreign movable income generally indicates that the amount to enter is the amount actually received, without adding back foreign withholding tax. On that basis, the practical amount entered in the Belgian return will often be the net amount received after Australian withholding tax.

In the example above, that would mean reporting around €3,180 per person under code 1444-11 / 2444-78, rather than the gross amount of around €3,500.

However, this should always be checked against the exact Tax-on-web screens, because foreign income reporting can depend on how the electronic return asks for gross income, foreign withholding tax and treaty relief information.

Australian withholding tax is not Belgian withholding tax

Australian tax withheld on Australian interest should not be entered as Belgian précompte mobilier. It is foreign tax, not Belgian withholding tax.

This distinction matters because entering foreign tax in a Belgian withholding tax box can lead to an incorrect return.

Where useful, the taxpayer can attach or include a short note explaining:

• the country of source: Australia;

• the nature of the income: bank interest or term deposit interest;

• the gross Australian interest;

• the Australian withholding tax;

• the net amount declared in Belgium;

• the Belgian return code used: 1444-11 / 2444-78;

• any treaty relief requested, where applicable.

Under the Belgium–Australia double tax treaty, Australia may tax certain interest paid to a Belgian resident, but the Australian tax is generally limited by the treaty. If Australian withholding tax was applied, the taxpayer should keep the supporting documents.

Why codes 1170/2170 and 1151/2151 may be wrong for Australian interest

For assessment year 2026, it is important not to confuse foreign interest with other boxes in Frame VII.

Code 1170-91 / 2170-61 is not the general code for Australian bank interest. It relates to collection and custody expenses connected with declared movable income. It should not normally be used to declare Australian bank interest or Australian withholding tax.

Code 1151 / 2151 is also not the general code for Australian interest. It concerns income from regulated savings deposits with credit institutions in the European Economic Area, after deduction of the exempt tranche. Australian accounts and term deposits do not normally fall into that category.

For Australian bank interest, the more relevant codes are generally 1444-11 / 2444-78, subject to the exact Tax-on-web presentation and the taxpayer’s personal situation.

Belgian savings interest should be analysed separately

Belgian savings interest is a different category. If the Belgian accounts are regulated savings accounts and the interest per taxpayer remains below the €1,020 exemption for income year 2025, that Belgian savings interest will generally not need to be declared.

This does not affect the Australian interest. The Belgian regulated savings exemption does not transform Australian interest into exempt Belgian savings income.

If a Belgian account is not a regulated savings account, or if no Belgian withholding tax was deducted, the treatment may need a separate review.

Joint accounts and allocation between spouses

For jointly held foreign bank accounts, a 50/50 allocation is often used where both spouses or partners are co-holders.

However, the exact allocation of movable income may also depend on the matrimonial property regime. Under a Belgian legal community regime, movable income may be treated differently from a strict separation of property regime.

This matters especially where the spouses have different individual accounts, different ownership percentages or significantly different interest amounts.

Foreign pensions and foreign real estate are separate issues

Foreign pensions and foreign real estate income should not be mixed with Australian bank interest.

A foreign government pension may fall under a double tax treaty exemption mechanism, depending on the nature of the pension and the treaty conditions. It is normally reported in the pension section, not in the movable income section.

Foreign real estate is also a separate category. For Belgian tax purposes, foreign real estate is often reported using the foreign cadastral income mechanism, rather than simply taking the net rental profit calculated under the foreign country’s tax rules.

For Australian real estate, the Belgium–Australia treaty may lead to exemption in Belgium with progression, but the reporting method still matters.

Foreign bank account reporting is a separate obligation

Declaring Australian interest in the Belgian tax return is not the same as reporting the Australian bank account itself.

Belgian residents with foreign bank accounts generally have two separate obligations:

• report the foreign bank account to the Belgian Central Point of Contact, often referred to as the PCC;

• mention the existence of the foreign account each year in the Belgian personal income tax return.

Even if the Australian accounts have already been reported to the PCC, the taxpayer must still check the annual foreign account question in the Belgian tax return.

Documents to keep

For income year 2025 / assessment year 2026, a Belgian resident with Australian bank interest should keep:

• Australian bank interest statements;

• proof of Australian withholding tax;

• the exchange rates used to convert Australian dollars into euros;

• a calculation showing the taxpayer’s share of joint accounts;

• evidence that foreign bank accounts were reported to the PCC;

• any Tax-on-web note or attachment used to explain the foreign income and foreign tax.

These documents are important if the Belgian tax administration later asks how the amount in code 1444-11 / 2444-78 was calculated.

Frequently asked questions

Do Belgian residents have to declare Australian bank interest in Belgium?

Yes. Belgian tax residents generally have to declare worldwide income, including Australian bank and term deposit interest, unless a specific exemption applies. Australian bank interest is normally foreign movable income.

Which Belgian tax code is used for Australian bank interest in assessment year 2026?

For income year 2025 / assessment year 2026, Australian bank interest will generally be reported in Frame VII, under code 1444-11 / 2444-78, as other movable income without Belgian withholding tax, taxable at 30%.

Can I deduct the Belgian €1,020 savings exemption from Australian interest?

Normally no. The €1,020 exemption for income year 2025 applies to regulated savings deposits, generally with Belgian or EEA credit institutions. Australian savings accounts and term deposits do not normally qualify.

Should I declare the gross Australian interest or the net amount after Australian tax?

Belgian guidance on foreign movable income generally points to the amount actually received, meaning the net amount after foreign withholding tax. However, the exact Tax-on-web fields should be checked before filing.

Is Australian withholding tax the same as Belgian withholding tax?

No. Australian withholding tax is foreign tax. It should not be entered as Belgian précompte mobilier, but it can be mentioned in an explanatory note or attachment where treaty relief may be relevant.

Do I still need to report the Australian bank account if I declare the interest?

Yes. Reporting the income and reporting the foreign account are separate obligations. The account may need to be reported to the PCC, and its existence must generally be mentioned annually in the Belgian tax return.

This article provides a general framework and is not a personalised tax opinion. Tax rules and return codes can change yearly, and the correct treatment depends on the exact income, account type, tax treaty position, Tax-on-web fields and personal situation.

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