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Belgium

Financial Year – 1 January – 31 December
Currency – Euro (EUR)

Corporate Tax Summary

Residence – A company is considered resident in Belgium if it was founded in Belgium, if it carries on business in Belgium or if the company’s management/control is located in Belgium.

Basis of Taxation – A resident company is taxed on its worldwide income, unless the income is exempt according to a tax treaty between certain countries. A non-resident company is only taxed on the income derived from Belgian sources.

Reference
Corporate Income Tax Rate (%) 20% – 25% From 1 January 2020, the corporate tax rate is 25%. Under certain conditions, the first EUR 100,000 profit of small and medium-sized companies is taxed at a rate of 20%.
Branch Tax Rate (%) 20% – 25% From 1 January 2020, the corporate tax is 25%. Under certain conditions, the first EUR 100,000 profit of small and medium-sized companies is taxed at a rate of 20%.
Withholding Tax Rate:
Dividends – Franked 0% – 30% The rate depends on the specific situation: Dividends distributed to a foreign shareholder (company) that owns more then 10% of the shares are exempt from withholding taxes. Dividends distributed to a shareholder (individual) can be taxed at rates between 5% – 30%.
Dividends – Unfranked 0% – 30% The rate depends on the specific situation: Dividends distributed to a foreign shareholder (company) that owns more then 10% of the shares are exempt from withholding taxes. Dividends distributed to a shareholder (individual) can be taxed at rates between 5% – 30%.
Dividends – Conduit Foreign Income not applicable
Interest 30% General rate
Royalties from Intellectual Property 15% – 30% The first EUR 62,090.00 is taxed at 15%. All income above EUR 62,090.00 is taxed at 30%.
Fund Payments from Managed Investment Trusts
Branch Remittance Tax
Net Operating Losses (Years)
Carry Back Due to COVID-19, it is possible to carry back expected losses to the previous financial year. Currently, it is only possible to carry back losses from 2020 to 2019.
Carry Forward Indefinite

Individual Tax Summary

Residence – A personal income tax declaration must be filed by all people who have settled in Belgium or made it their centre of financial interest, regardless of their nationality.

In addition, the following persons are also regarded as residents:

  • Diplomatic, as well as certain non-diplomatic staff of Belgian embassies and consulates
  • Other officials, representatives of the Belgian state or one of its subdivisions, as long as they are only temporarily abroad
  • Persons who remain residents of Belgium because of an international treaty

A non-residents‘ tax return must be filed by non-residents who have obtained one or more of the following incomes:

  • Income from real estate located in Belgium
  • Profits from industrial, commercial or agricultural activities carried out in one or more establishments located in Belgium
  • Remunerations, pensions, interests and as such applicable allowances from a Belgian company, establishment or non-resident
  • Any remuneration payable by a non-resident for a professional activity pursued in Belgium, if the person has resided in Belgium for more than 183 days during any 12-month period

Basis of Taxation – Resident taxpayers are generally taxed on worldwide income.

Non-residents are taxable only on Belgian-source income.

Filing Status – Each taxpayer must file a return each financial year. Married couples or legal cohabitants must file a joint declaration from the 2nd year on.

Personal Income Tax Rates

Taxable Income Tax Payable – Residents Tax Payable – Non Residents
0.00 – 13,250.00 25%
13,250.01 – 23,390.00 40%
23.390,01 – 40.480,00 45%
40,480.01 – … 50% 50%

Goods and Services Tax (GST)

Rate 0% – 21%
Taxable Transactions VAT (value added tax) is a tax on the incoming and outgoing business transactions of an organisation. VAT is charged at each step in the supply chain.
Every VAT registered entity is obliged to charge VAT on the goods and/or services delivered to their clients. The VAT is then transferred to the VAT authorities after deduction of the VAT paid on incoming transactions.
Some transactions are exempt from VAT, such as medical services, most financial services and education.
Registration Every entity that is considered a VAT taxable organisation is obliged to register for VAT purposes, except where their activities are exempt from VAT according to the Belgian VAT Code, such as medical services and education.
If the turnover of an entity does not exceed EUR 25,000, the entity can chose not to apply VAT (with the loss of VAT deduction).
Filing and Payment The VAT declaration has to be filed on a monthly basis, always before the 20th of the month following the transactions.

If turnover does not exceed EUR 2,500,000, quarterly declarations can be filed before the 20th of the month following the end of each quarter (January, April, July, October).

Payment is due according to the declaration schedule. In the case of monthly declarations, payment must be executed on the 20th of each month following the transactions. In the case of quarterly declarations, this is the 20th of the month following the end of the quarter.

Other Taxes Payable

Tax Reference
Payroll Tax Mandatory withholding tax must be deducted from salaries and other remuneration. The amount of tax is determined by the amount of salary, the family situation and whether or not the two spouses receive a professional income.
The employer transfers the deducted withholding tax to the tax authorities and at the end of the year provides a tax form to the employee indicating the amount of withholding tax paid.
Stamp Duty The following transactions may be subject to Transfer Tax, also known as Registration Tax:
– Transfer of real estate property
– Gifts (money, real estate other goods)
– Mortgage registration
– Registration of various certificates. The rate can be fixed or proportional, depending on the transaction.
Land Tax Property tax is a regional tax on real estate (houses, apartments, land etc.) which must be paid annually.

This tax equals a percentage of the indexed cadastral income (KI). This percentage differs depending on the location of the property.
– Flemish Region: 3.97%
– Brussels Region: 1.25%
– Walloon Region: 1.25%

There is a reduced rate for socially rented homes.

Last updated: 06.07.2020

Financial Year – 1 January – 31 December
Currency – Euro (EUR)

Corporate Tax Summary

Residence – A company is considered resident in Belgium if it was founded in Belgium, if it carries on business in Belgium or if the company’s management/control is located in Belgium.

Basis of Taxation – A resident company is taxed on its worldwide income, unless the income is exempt according to a tax treaty between certain countries. A non-resident company is only taxed on the income derived from Belgian sources.

Reference
Corporate Income Tax Rate (%) 20% – 25% From 1 January 2020, the corporate tax rate is 25%. Under certain conditions,  the first EUR 100,000 profit of small and medium-sized companies is taxed at a rate of 20%.
Branch Tax Rate (%) 20% – 25% From 1 January 2020, the corporate tax is 25%. Under certain conditions,  the first EUR 100,000 profit of small and medium-sized companies is taxed at a rate of 20%.
Withholding Tax Rate:
Dividends – Franked 0% – 30% The rate depends on the specific situation: Dividends distributed to a foreign shareholder (company) that owns more then 10% of the shares are exempt from withholding taxes. Dividends distributed to a shareholder (individual) can be taxed at rates between 5% – 30%.
Dividends – Unfranked 0% – 30% The rate depends on the specific situation: Dividends distributed to a foreign shareholder (company) that owns more then 10% of the shares are exempt from withholding taxes. Dividends distributed to a shareholder (individual) can be taxed at rates between 5% – 30%.
Dividends – Conduit Foreign Income not applicable
Interest 30% General rate
Royalties from Intellectual Property 15% – 30% The first EUR 62,090.00 is taxed at 15%. All income above EUR 62,090.00 is taxed at 30%.
Fund Payments from Managed Investment Trusts
Branch Remittance Tax
Net Operating Losses (Years)
Carry Back Due to COVID-19, it is possible to carry back expected losses to the previous financial year. Currently, it is only possible to carry back losses from 2020 to 2019.
Carry Forward Indefinite

Individual Tax Summary

Residence – A personal income tax declaration must be filed by all people who have settled in Belgium or made it their centre of financial interest, regardless of their nationality.

In addition, the following persons are also regarded as residents:

  • Diplomatic, as well as certain non-diplomatic staff of Belgian embassies and consulates
  • Other officials, representatives of the Belgian state or one of its subdivisions, as long as they are only temporarily abroad
  • Persons who remain residents of Belgium because of an international treaty

A non-residents’ tax return must be filed by non-residents who have obtained one or more of the following incomes:

  • Income from real estate located in Belgium
  • Profits from industrial, commercial or agricultural activities carried out in one or more establishments located in Belgium
  • Remunerations, pensions, interests and as such applicable allowances from a Belgian company, establishment or non-resident
  • Any remuneration payable by a non-resident for a professional activity pursued in Belgium, if the person has resided in Belgium for more than 183 days during any 12-month period

Basis of Taxation – Resident taxpayers are generally taxed on worldwide income.

Non-residents are taxable only on Belgian-source income.

Filing Status – Each taxpayer must file a return each financial year. Married couples or legal cohabitants must file a joint declaration from the 2nd year on.

Personal Income Tax Rates

Taxable Income Tax Payable – Residents Tax Payable – Non Residents
0.00 – 13,250.00 25%
13,250.01 – 23,390.00 40%
23.390,01 – 40.480,00 45%
40,480.01 – … 50% 50%

Goods and Services Tax (GST)

Rate 0% – 21%
Taxable Transactions VAT (value added tax) is a tax on the incoming and outgoing business transactions of an organisation. VAT is charged at each step in the supply chain.
Every VAT registered entity is obliged to charge VAT on the goods and/or services delivered to their clients. The VAT is then transferred to the VAT authorities after deduction of the VAT paid on incoming transactions.
Some transactions are exempt from VAT, such as medical services, most financial services and education.
Registration Every entity that is considered a VAT taxable organisation is obliged to register for VAT purposes, except where their activities are exempt from VAT according to the Belgian VAT Code, such as medical services and education.
If the turnover of an entity does not exceed EUR 25,000, the entity can chose not to apply VAT (with the loss of VAT deduction).
Filing and Payment The VAT declaration has to be filed on a monthly basis, always before the 20th of the month following the transactions.

If turnover does not exceed EUR 2,500,000, quarterly declarations can be filed before the 20th of the month following the end of each quarter (January, April, July, October).

Payment is due according to the declaration schedule. In the case of monthly declarations, payment must be executed on the 20th of each month following the transactions. In the case of quarterly declarations, this is the 20th of the month following the end of the quarter.

Other Taxes Payable

Tax Reference
Payroll Tax Mandatory withholding tax must be deducted from salaries and other remuneration. The amount of tax is determined by the amount of salary, the family situation and whether or not the two spouses receive a professional income.
The employer transfers the deducted withholding tax to the tax authorities and at the end of the year provides a tax form to the employee indicating the amount of withholding tax paid.
Stamp Duty The following transactions may be subject to Transfer Tax, also known as Registration Tax:
– Transfer of real estate property
– Gifts (money, real estate other goods)
– Mortgage registration
– Registration of various certificates. The rate can be fixed or proportional, depending on the transaction.
Land Tax Property tax is a regional tax on real estate (houses, apartments, land etc.) which must be paid annually.

This tax equals a percentage of the indexed cadastral income (KI). This percentage differs depending on the location of the property.
– Flemish Region: 3.97%
– Brussels Region: 1.25%
– Walloon Region: 1.25%

There is a reduced rate for socially rented homes.

Last updated: 06.07.2020