How to declare my accounts and my life insurance contracts held abroad

Paypal, Google, etc. accounts. in principle should not be declared, except

Should we declare its foreign bank accounts ?

If, by declaring your income, you do not indicate that you have accounts abroad, you risk at least 1,500 euros fine, explains Dimitar Hadjiveltchev, associate lawyer at CMS Francis Lefebvre.

By Dimitar Hadjiveltchev (Associate Lawyer, CMS Francis Lefebvre)

Posted on June 04, 2023 at 05:30, modified on June 04, 2023 at 05:30

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Question to an expert

I have an account in a bank that is not French, is it true that it must appear in my income declaration ?

In your income tax return, you must declare any bank accounts held abroad in 2022, including those of 100 % mobile banks like N26, Revolut, etc.

What are you likely not to declare these accounts ? The legal arsenal is muscular: a fine of 1,500 euros per account and per year of omission, or even 10,000 euros if the country does not have an intelligence exchange agreement with France, or an increase of 80 % on income or account of the account (with a minimum of 1,500 euros). The same sanctions are worth for life insurance.

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The sums passing by the account are processed as taxable income, unless you prove that they are not. In addition, if the origin of the assets cannot be explained, a taxation at 60 % of the highest balance of the account can be applied.

Recovery over ten years

Please note: in the event of non-declaration of account abroad, the recovery can relate not to three years but over ten years.

The Nantes administrative court of appeal, however, judged, at the end of 2022, that if the income was properly declared and if the tax administration had sufficient indices to identify the contract and trigger an investigation, the long prescription of ten years n ‘was not applicable. The case concerned Luxembourg life insurance. A confirmation of the Council of State would be welcome.

Stranging account declaration

This obligation aims at individuals domiciled in France within the meaning of article 4 B of the General Tax Code (CGI), whether they are holders of the account, co-holders, economic beneficiaries or the economic law.

France is understood in the sense of the metropolis, Monaco (for French residents established since 11/14/1957), the overseas departments, as well as the islands of Saint-Barthélémy and Saint-Martin (in application of The rule according to which people residing in these overseas communities retain their tax domicile in France the first five years following the transfer).

The declarant may also be the legal representative of a minor or major member protected from the tax household.

What accounts are concerned ?

All bank accounts, capitalization or placement contract of the same kind (life insurance contracts) and open, detainees, used or closed digital asset accounts during the year.

Thus, the accounts open to banks, investment service providers, public administrations or persons such as notaries or foreign exchange agents who are usually used to deposit securities, securities or species are concerned with banks.

Also concerned are open life insurance contracts to insurance organizations and similar, as well as digital asset accounts (e.g. cryptocurrencies).

On the other hand, the accounts are not concerned which are intended to make purchasing payments or receipts relating to sales of goods online for an amount of € 10,000 per year for all accounts, from then on that these accounts used for these operations are backed by one or more accounts opened in France.

How to declare ?

The declaration is made at the same time as the declaration of the whole income of the year.

During the online declaration of your income, use the single form n ° 3916/3916 bis (bank accounts, digital asset accounts, and insurance contracts).

Only one declaration must be made for the same account or contract opened by spouses, whether they are both holders or whether one or the other has a proxy on the account of the main holder.

Punishments

Sanctions are incurred:

• In the event of inaccuracy or omission in the declaration, a fine is provided for in 2 of article 1729 B of the CGI.
• In the event of a non -filing of the declaration (art. 1736 of the CGI): the fine is € 1,500 per unsuccessful account. When the declarative obligation concerns a state or territory which did not conclude with France an agreement in order to fight against fraud, the fine is increased to € 10,000.

Taxation of alleged income under article 1649 A of the CGI, accompanied by a 40 % increase.

Maj Dinr leaves on 02/15/2022

Accounts abroad

I have (or I owned) an account abroad. What should I do ?

• If this account has been closed: in this case, you must communicate the closing date using the closing form Available on the Belgian National Bank website.
• If the holder or co -owner of this account was your child whose income was accumulated with your income: in the event of a decline in 2020, you must communicate the last taxable period (2020) during which your child’s income was cumulative with yours Using the decline form Available on the Belgian National Bank website.

The account already existed before January 1, 2020 and you have not yet declared it at the central point of contact

If you are (or were, if the account was closed before January 1, 2020) holder or co -owner of this account, you should in principle have already communicated it in 2020. If this is not the case, you can still communicate it to the central point of contact using the communication form of foreign accounts (see question 4) even if this communication will be considered late.

If the holder or cottown of the account is your child: see question 5 and also see above.

Attention : If you are non-resident (that is to say if you file a declaration to the tax of non-residents in Belgium), you are not concerned by the obligation to communicate your foreign accounts to the point of central contact.

I am a co-holder of an account abroad with my legal spouse or cohabitant. Should we each complete a form ?

Yes. You must each declare this account and therefore each complete a form.

What are the accounts concerned ?

• Account opened on May 3, 2020 and fenced on May 4, 2020
• account opened on December 31, 2020 and still existing

Paypal, Google, etc. accounts. in principle should not be declared, except

• if they are linked to a professional activity or
• If sums of money remain on these accounts beyond the strictly necessary period from the technical point of view to carry out transactions.

If you mention such an account in the form, please complete the “Account number” field with the e-mail address you have communicated to Paypal, Google etc. To carry out the transaction.

How can I declare my accounts abroad ?

Online You can declare your accounts by filling out directly online the form available on the website of the National Bank of Belgium. You need your electronic identity card, your PIN code and a card player. Via the form to download You can download, complete and print the form available on the website of the National Bank of Belgium. Please return it dated, signed and accompanied by a retrato-verso copy of your identity card Belgian (or, failing that, your residence permit Delivered by Belgium) At the following address: National Bank of Belgium
Central contact point
Boulevard de Berlaimont 14
1000 Brussels CAUTION ! Only forms sent to this address will be accepted. Shipments by email or fax will be refused. Via the paper form You can get the paper form on request to the address mentioned above, or by e-mail at CAP [email protected]. Please return it completed, dated, signed and accompanied by a retrato-verso copy of your identity card Belgian (or, failing that, your residence permit) to the address mentioned above. Via your agent You can ask another person (your accountant, for example) to bring the form back for you. This person must have a mandate that explicitly specifies that they can communicate your foreign accounts on your behalf. If your agent returns the form by post to the National Bank of Belgium, he will have to attach a retrato-verso copy of your identity card (or, failing that, your residence permit Delivered by Belgium) as well as a retrato-verso copy of his own identity document. When your agent has communicated your data (online or by post), you will then receive an acknowledgment of receipt from the National Bank of Belgium within 90 days. Explanatory note An explanatory notice is at your disposal the website of the National Bank of Belgium to help you complete the form. We strongly invite you to consult it in order to ensure that you correctly complete the form.

My child has an account abroad. Who must declare it ?

Each parent, Individually, must declare foreign accounts of which their children are holders or co-holders, when the income of these children are accumulated with those of their parents for the tax exercise concerned (which is generally the case if the child is minor). In the event of a decline of the child’s income with those of his parents (which is generally the case when the child becomes an adult), each of the parents must indicate the last taxable period during which his child’s income still have been combined with those of his parents, and the child must mention the existence of the account in his own tax declaration and himself complete a form to communicate his account to the central point of contact. Example : Jean, the son of Mr. and Mrs. Dupont has an account abroad opened in 2020. In 2021, Jean became an adult and his income was no longer accumulated with those of his parents. The existence of this account must be mentioned in the tax return of Mr. and Mrs. Dupont, and Jean. Mr. Dupont, Mrs. Dupont and Jean will have to, each, Complete a form to communicate this account to the central point of contact. Mr. and Madame DUPONT will each have to indicate “2021” in the “last taxable period during which the child’s income was accumulated with those of the parents”.

For when do I have to declare my accounts abroad ?

You must declare accounts abroad opened in 2020 and of which you were (Co-) Holder at the latest when you introduce your tax declaration Tax exercise 2021.

I received a simplified declaration proposal and I have an account abroad

In this case, you no longer have to take into account the proposal for a simplified declaration and you have the obligation to submit a paper declaration or via myminfin.

I opened a new account abroad in 2021. What should I do ?

You will have to declare it to the central point of contact at the latest when you introduce your 2022 tax exercise in 2022. However, you can already declare it now, via the paper or online form (see question 4).

Do I have to communicate to the central contact point for individual life insurance concluded with an insurance company established abroad ?

No, individual life insurance concluded with an insurance company established abroad should not be communicated to the central point of contact. However, you must mention their existence in your declaration to the tax of the Personal Persons (Code 1076-88) and indicate the name and first name of the insurance lesse as well as the country where the insurance company was established.

Who will have access to information on my accounts ?

Only certain civil servants (notably the SPF Finance) can access your information, in very specific situations and according to strict procedures. More information

Can I read the data that has been saved in my name in the central contact point ?

You can request in writing from the National Bank of Belgium (see address mentioned in question 4) to consult the information concerning you. If the data recorded in the central contact point proves to be inaccurate, you have the right to request their correction or deletion at no cost.