(Keep in mind that BUX does not provide tax advice. For specifics on local tax regulations and on how to file your tax statement, we always recommend you obtain advice from the tax authorities or independent advice from a tax consultant.)
When you receive dividends from a company, you’re required to pay a small tax to whichever country that company is domiciled. This tax is already withheld by BUX when you receive the dividend in the app. However, Belgian users are required to pay an additional dividend tax in their own country, if they receive more than 800 EUR of dividend per year. This tax applies on dividends received by Belgian and foreign companies and the percentage is 30%. This is the reason you are required to declare the amount of dividend you receive in your annual statement.
So how does this work?
If a user gets 1 EUR in dividends from a Dutch company they have to pay a 15% withholding tax which means they will receive: 1 EUR x 0,85 = 0,85 Cents.
If this dividend is within the 800 EUR (tax-free) allowance per year, you keep the amount of 0,85 cents.
If this dividend is above the 800 EUR per year (not tax-free) threshold, you will have to pay an additional 30% tax.
You live in Belgium and you receive 1 EUR in dividends from a Dutch company so you have to pay 15% withholding tax → 1 EUR x 0,85 = 0,85 Cents. The 0,85 cents is what you will receive from BUX and you have to pay the 30% tax on this amount. Like this : 0,85 x0,30 = 0,255 cents are requested to be paid to the Belgian state with your annual tax statement.
When should you pay?
You pay this tax on a yearly basis with your annual tax statement. To help you calculate the amount of dividend tax, we’ll send you an overview by email every year at the beginning of the year.
Please note this tax is separate from the TOB. The TOB is reported every month and has to be paid accordingly. You can look for more information about the TOB in the FAQ.