National regulation and international agreements

Consumption taxes

Nature of the tax

TVA (taxe sur la valeur ajoutée) or VAT (value added tax)

Tax rate

21% for main items

Reduced tax rate

7% on special goods (like TV service, social estate, etc) and 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

Excise on: alcohol. tobacco, patrol, luxurious goods, gas, coffee and tea, etc.

Corporate taxes

Tax rate

For Small and medium-sized companies:	:	in %
on income up to EUR 25 000	:	24,25
on income between EUR 25 000 and EUR 90 000	:	31
on income between EUR 90 000 and EUR 322 500	:	34,5

Tax rate for foreign companies

The standard corporate income tax rate is 33.99% (including an austerity surcharge of 3%).

Capital gains taxation

In principle, capital gains are taxable upon realization. As an exception to this rule, realized capital gains on shares are free of taxes.

With effect from assessment year 2007, all capital gains will only be considered on a "net" basis for Belgian tax purposes. Unrealized capital gains can be temporarily exempted from taxes, subject to conditions.

Main allowable deductions and tax credit

Regarding specific charges that are deducted from the corporate revenue, please refer to the website of the Ministry of Economy as it is depending on the state where your corporate is situated.

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.

Individual taxes

Tax rate

Income tax is withheld at source:	:	in %
From 0 to 7,100 EUR	:	25
From 7,101 to 10,100 EUR	:	30
From 10,100.01 to 16,830 EUR	:	40
From 16,830.01 to 30,840 EUR	:	45
Over 30,840 EUR	:	50

Allowable deductions and tax credit

Consult the website GEOFISC association.

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”. Consult Deloitte tax guide for more information.

Sources of fiscal information

Tax Authorities

Belgian Ministry of finances
Tax Administration

Other domestic resources

All useful links including tax official entity.

Flanders Investment and Trade