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COUNTRY TRADING PROFILES
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Taxes - Accounting
Tax Rates |
Accounting Rules
Tax Rates
Consumption taxes
- Nature of the tax
-
VAT (value added tax)
- Tax rate
- 21%
- Reduced tax rate
- Between 6% and 12 %. 7% on special goods (like TV service, social estate, etc), 6% on first necessity goods (like transport, food, medicine, art, papers and books, etc).
For further information consult Flanders investments and trade.
- Other consumption taxes
- Excises apply in Belgium on alcohol. tobacco, petrol, luxury goods, gas, coffee and tea, etc.
Corporate taxes
Tax rate
| Corporate tax |
33,99%, including a surcharge of 3%. |
| Reduced rates |
Under some conditions, reduced rates can be applied: 24.98% (from EUR 0 to 25,000), 31.93% (from EUR 25,001 to 90,000) and 35.54% (from EUR 90,001 to 322,500). |
- Tax rate for foreign companies
- A resident company in Belgium is liable to corporation tax on its worldwide profits. A company is resident in Belgium if its registered office or centre of management is situated in Belgium. Trading profits and capital gains of a non-resident company are calculated and taxed on the same basis as those of a Belgian resident company.
- Capital gains taxation
- Capital gains are normally treated as ordinary business income and are taxable at the normal corporation tax rates. However, there are exceptions such as gains on shares qualifying for the participation exemption.
- Main allowable deductions and tax credit
- Regarding specific company tax deduction, please refer to the website of the Ministry of Economy (in English) as deductions depends on the state where corporations are based.
Deduction of the Income Tax base: disallowed expenses, exempt foreign income, dividends-received deduction, notional interest deduction, both distributed and retained profits are subject to corporate income tax, tax losses carried forward, investment deduction, patent income deduction.
- Other corporate taxes
- Refer to the website of the Ministry of Economy (in English) for additional information on company taxes.
Individual taxes
Tax rate
| Income tax is withheld at source: |
from 25 to 50% |
| From EUR 0 to 7,560 |
25% |
| From EUR 7,560 to 10,760 |
30% |
| From EUR 10,760 to 17,920 |
40% |
| From EUR 17,920 to 32,860 |
45% |
| Over EUR 32,860 |
50% |
- Allowable deductions and tax credit
- To know the requirements for deductible expenses in the personal income tax, consult the GEOFISC association's website (in French).
- Special expatriate tax regime
- An expatriate working in Belgium will typically be liable to Belgian income tax. Additionally, property tax, gift and succession duty may also be relevant. Residents of Belgium pay personal income tax on their total income from all worldwide sources on a sliding scale.
Residents also pay communal and regional taxes at rates between 0 and 8.5 percent of the total income tax payable. The special expatriate tax status also offers two important tax advantages to foreign executives: the “tax-free expatriation allowances” and the “travel exclusion”.
Double taxation treaties
- Countries with whom a double taxation treaty have been signed
- Services Publics Fédéral des Finances (FISCUS)
- Withholding taxes
- Dividends: 25% (15% for certain category of shares), Interest: 15%, Royalties: 15%.
- Bilateral agreement
-
 We can indicate you which local taxes are applied to your product.
© Export Entreprises SA, all rights reserved.
Last updates: May 2012
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