Where dividend tax should be paid?

[dmitrya2e]

Excuse me that I write in English, but my Dutch is not so good to explain that situation very good.

I live in Belgium (I am tax-resident in Belgium). I own a company in another EU state (Latvia) from which I receive dividends. I also would like to work from Belgium as zelfstandige part-time. Obviously, I will pay income tax and RSZ in Belgium. But what about dividends from my company in Latvia? Where the tax for dividends should be paid? I know there is agreement about double taxation between Belgium and Latvia, but the language there is just too juridical...

From my perspective tax for dividends is paid in a source-country (in this case in Latvia).

Thank you!

[Thomas Morus]

It is mandatory to declare in B income from dividends originating from abroad, even if they were already taxed in the country of origin.
In some cases you can apply for a tax reduction in the country of origin, i.e.where the tax at source was levied.
I have bad feelings about such a possibility in Latva.
Ask the Latvian tax authorities.

[dmitrya2e]

Thank you for the answer! There is no problem with the declaration of such income. The question is more about is it legal to pay the tax for these dividends in Latvia or if i live in Belgium i should pay them here?

Thanks.

[Thomas Morus]

Yes! It is common practice.

[Inazuma]

The question is more about is it legal to pay the tax for these dividends in Latvia or if i live in Belgium i should pay them here?

Likely you'll have to pay in both countries ... unless Latvia has a rule that you don't have to pay there.


I have employer's shares in Germany.
Germany deducts taxes from the dividend, as the originating country

But in Belgium, you have to declare these, and get taxed on them again.
Next, you have to do a lot of paperwork, including a declaration from the Belgian Income Tax administration that you were actually taxed on them, to get most (not all) of the German tax back ...

And that's because Germany and Belgium have an agreement to not tax their citizens twice


Looks like Latvia has a similar agreement ...
Dubbel-belastings verdrag i.e. Double taxation treaty

https://www.tuerlinckx.eu/nl/shares-exp ... irculaires

[dmitrya2e]

> But in Belgium, you have to declare these, and get taxed on them again.

Do you work in Belgium as well?

[Inazuma]

> But in Belgium, you have to declare these, and get taxed on them again.

Do you work in Belgium as well?

I work & live in Belgium
The employer's shares were issued in Germany