Income tax - How are deferred income taxed?

Collected in 2022

Deferred revenue is revenue you received in 2022, but that is the remuneration for activities you performed in 2021 or earlier (over one or more years).

The lag should not be your fault. For example, a salary or promotion reminder.

These revenues were subject to withholding tax like other revenues.

When you file your 2023 income tax return for 2022, you do not have to report them with your business income, but as one-time income, regardless of the amount.

You can request that this income be taxed on the basis of quotient system.

The quotient system avoids the progressivity of the scale tax.

It applies in 2 steps:

1. Add one-quarter of one-time income to regular income
2. Multiply by 4 the corresponding tax supplement

The tax on exceptional income is paid in one installment.

You must enter the total of these revenues in the box provided on page 3 of return No. 2042 C (line 0XX).

You must detail the amount and nature of the deferred income to be taxed at the quotient, received by each household member in one of the following ways:

• Within the framework of the declaration
• On free paper attached to Declaration No 2042

Tax returns via Internet is required if your principal residence is equipped with internet access and you are able to file your return online.

For 2023, the tax return is complete.

The 2024 income tax return for 2023 will begin in April 2024.