Belgia tax system: audit, reporting and optimization of taxation of Belgian companies and individuals: VAT, income tax and capital gains

Basic taxes (briefly)

Personal tax 25-50%
Corporate tax (in detail) The standard income tax rate is 25%
Capital gains tax. Details There is no separate tax for capital gains, some kinds of capital gains are taxable within the system of corporate taxation with various tax exemptions.
VAT. Details The standard rate is 21%, but lower rates apply to certain categories of goods and services: 6% (live animals, meat, fish, vegetables, fruit, medicine, water supply, etc.) and 12% (restaurant servicing, phytopharmacology, some kinds of solid fuel, etc.).
Other taxes Inheritance tax; Transfer Duty upon death; Tax on Long-term Savings; Circulation Tax; Betting and Gambling Tax; Tax on credit organizations
Government fee No
Stamp duty 12.5%

International tax agreement

Albania, Algeria, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, Chile, China, Chinese Taipei, Congo (Republic of the), Croatia, Cyprus, Czech Republic, Côte d'Ivoire, Denmark, Ecuador, Egypt, Estonia, Finland, Former Yugoslav Republic of Macedonia, France, Gabon, Georgia, Germany, Ghana, Greece, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Kazakhstan, Korea (Republic of), Kosovo, Kuwait, Kyrgyzstan, Latvia, Lithuania, Luxembourg, Macao (China), Malaysia, Malta, Mauritius, Mexico, Moldova (Republic of), Mongolia, Montenegro, Morocco, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Rwanda, San Marino, Senegal, Serbia, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Venezuela, Viet Nam
   
Andorra, Anguilla, Antigua and Barbuda, Aruba, Bahamas, Belize, Bermuda, Cayman Islands, Cook Islands, Dominica, Gibraltar, Grenada, Guernsey, Jersey, Liechtenstein, Monaco, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines


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Personal Taxes: Income tax

Income tax is levied on the income of Belgian residents earned in Belgium and abroad and on the income of non-residents from sources in Belgium.

Income tax is levied at progressive rates:

  • 25% - on income up to 13,870 EUR;
  • 40% - on income between 13,870 EUR and 24,480 EUR;
  • 45% - on income between 24,480 EUR and 42,370 EUR;
  • 50% - on income above 42,370 EUR.

Investment income is taxed according to special rules. Interest and dividend income received through Belgian financial institutions is taxed at 30%. Interest on ordinary savings accounts is taxed at 15%. There are non-taxable minimums on interest and dividend income.

Residents of Belgium pay municipal taxes on income at rates ranging from 0% to 9%, the average rate is 7%. For non-residents the tax rate is 7%.

Income tax

The standard income tax rate is 25%. A reduced rate of 20% is set for small and medium-sized businesses.

An additional fee of 6.75% is also payable on the amount of income tax, which may not be charged if the quarterly advance payments of income tax are sufficient.

If a number of conditions are met, dividends received and gains from the sale of stock are not subject to income tax. These conditions include holding for one year or more a shareholding of 10% or more or a value of at least EUR 2,500,000. In addition, the subsidiary must be subject to income tax under similar conditions as in Belgium.

VAT

The standard VAT rate is 21%. For certain goods and services, the rate can be 12% or 6%.

Social contributions

The employer's social contributions are calculated at a rate of 25%. In addition, contributions are paid to various funds depending, among other things, on the economic sector. In general, the rate is usually 27.5%.

The employee pays a social contribution at the rate of 13.07%. In addition a special social contribution is paid at different rates, which must not exceed EUR 731,28 per family per year.

Withholding tax

Withholding tax is levied on the payment of dividends, interest, royalties, service charges and some rent payments.

The normal tax rate for dividends, interest and royalties is 30%.

The rate may be reduced in accordance with double taxation treaties or EU directives, as well as under domestic law.

Property tax

The basis for the annual property tax is the imputed rent, calculated according to special rules. The tax rate depends on the location of the property and is a combination of regional, provincial and community tax.

Real estate transfer tax

The purchase and transfer of Belgian real estate (excluding new buildings, to which VAT applies) is subject to a registration tax at a rate of 12.5% (rates are lower in the Flemish region). The tax base is the transaction value or the market value if higher.

Inheritance and gift tax

Heirs to an estate pay inheritance tax (the family home is usually excluded). Gifts must be notarized and tax is paid on them. The tax rate varies from region to region.

Stamp duty

Stamp duty is payable on transactions with public funds in certain cases.

Double taxation treaties

Belgium has entered into the following mechanisms for the exchange of tax information:

102 DTS: Albania, Algeria, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, Chile, China, Chinese Taipei, Congo (Republic of the), Croatia, Cyprus, Czech Republic, Côte d'Ivoire, Denmark, Ecuador, Egypt, Estonia, Finland, Former Yugoslav Republic of Macedonia, France, Gabon, Georgia, Germany, Ghana, Greece, Hong Kong, Hungary, Iceland, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Kazakhstan, Korea (Republic of), Kosovo, Kuwait, Kyrgyzstan, Latvia, Lithuania, Luxembourg, Macao (China), Malaysia, Malta, Mauritius, Mexico, Moldova (Republic of), Mongolia, Montenegro, Morocco, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Rwanda, San Marino, Senegal, Serbia, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Venezuela, Viet Nam.

20 TIEA: Andorra, Anguilla, Antigua and Barbuda, Aruba, Bahamas, Belize, Bermuda, Cayman Islands, Cook Islands, Dominica, Gibraltar, Grenada, Guernsey, Jersey, Liechtenstein, Monaco, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines.

Exchange controls

Belgium has no foreign exchange controls.

    Taxes of Belgium

    Min. rate for corporate tax 25%
    Capital gains tax Regular rate
    VAT 21%
    Withholding tax 30%/30%/30%
    Exchange control No
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