Taxes - Accounting

Belgium

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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: Belgium and Tunisia are bound by a double taxation treaty: yes

Signed	Ratified	Enforced
22/02/1975	Law 76-3 of 07/01/76	16/10/1976

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: Services Publics Fédéral des Finances (FISCUS)
Other domestic resources: Anglo Info website: Living in Belgium
Flanders Investment and Trade

Accounting Rules

Tax year: From the 1st of January to the 31st of December.
Accounting standards: Plan Comptable Minimum Normalisé (PCMN: only in French) or the Minimun Standardized Accounting Plan. Download this accounting plan (only available in French).
Accounting regulation bodies: Commission of the countable standards in Belgium
Institute of Chartered Accountants
Accounting reports: Belgian accounting principles are promulgated by: the law of July 17, 1975, royal decrees and the recommendations of the Accounting principles Committee.
Publication requirements: All Belgian companies have to present to shareholders an annual account according to a standard form; a complete plan for big companies and an abbreviated one for Small and Medium-Sized Companies.
This annual account must include: the balance sheet, the profit and loss account and the appendix.
The Brussels stock market allows companies to publish their accounts by referring to the IASC (International Accounting Standards Committee) norms.
The Belgian companies whose capital is foreign may also follow the IASC norms.
Professional accountancy bodies: Institute of Chartered Accountants and tax advice
The corporate auditors
Certification and auditing: Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization.
You can coontact an external auditor: Ernst&Young, KPMG, PricewaterhouseCoopers.
Accounting news: Ernst&Young News website
Ernst&Young News website on Belgium