Income tax - How are deferred income taxed?

Verified 01 January 2024 - Legal and Administrative Information Directorate (Prime Minister)

Collected in 2023

Deferred revenue is revenue you received in 2023, but that is the remuneration for activities you performed in 2022 or earlier (over one or more years).

The offset must not not be of your making.

For example, a salary or promotion reminder.

These revenues have been subject to withholding tax like other income.

When you file your 2024 2023 income tax return, you do not have to report it with your business income.

You must declare them as windfall revenues, 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 tax scale.

It applies in 2 steps:

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

The tax on exceptional income is paid in one go.

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 income deferred to be imposed on the quotient, received by each member of the household by one of the following means:

  • 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.

Collected in 2024

Deferred income is income you receive in 2024 that is the remuneration for activities you performed in 2023 or earlier (over one or more years).

The offset must not not be of your making.

For example, a salary or promotion reminder.

These revenues are subject to withholding tax like other income.

However, you do not have to report them on the 2024 2023 income tax return.

You will have to declare them during the 2025 income statement 2024, regardless of the amount.

When you file your 2025 income tax return for 2024, you will not have to report it with your business income.

You will have to declare them as windfall revenues, regardless of the amount.

Income tax: 2024 income tax return for 2023

Published on 1 January 2024

This page is up to date for the 2023 tax return.

However, the forms, online services and information documents are not yet available for the 2024 campaign. They will be made available online as soon as they become available.

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